Public Markets 3 Days

Last updated: May 29, 2026, 11:35 AM ET

Equity Markets

U.S. equities rallied for a ninth consecutive week as artificial intelligence optimism and peace-deal hopes overshadowed geopolitical concerns, with the S&P 500 gaining 0.1% in premarket trading on expectations that AI spending will drive further corporate gains. BlackRock is trimming equity exposure across its $220 billion model-portfolio business after U.S. stocks surged to record highs, while HSBC strategists noted that blowout first-quarter earnings from technology megacaps have provided fundamental support to the rally. The AI trade has pushed Ford Motor Co. shares toward their best monthly gain in 17 years, with the automaker's newfound status as a potential beneficiary of artificial intelligence sparking an investor frenzy.

Energy & Commodities

Crude oil headed for its biggest monthly decline since 2020 as the U.S. and Iran neared an agreement to extend the cease-fire and reopen the Strait of Hormuz, with Brent futures falling on renewed optimism despite U.S. stock futures remaining largely flat. Approximately one-quarter of non-Iranian large oil tankers trapped in the Persian Gulf at the outbreak of the Iran war have managed to escape in a slow, stealthy trickle, while insurance coverage at Lloyd's remains critical for ships navigating the conflict zone. A deepening aluminum shortage pushed spot prices higher as exchange inventories slumped, with Japanese aluminum premiums set to reach record levels after Rio Tinto and South32 offered third-quarter supply at unprecedented rates.

Fixed Income & Currencies

The dollar weakened against all major peers after reports of a U.S.-Iran cease-fire extension deal, while Japan spent a record $73.6 billion between April 28 and May 27 to support its currency after the yen slipped past 160 per dollar. Rising bond yields have reshaped Japanese markets, entering a new phase where higher rates signal potential inflation risks rather than just policy normalization. The European Central Bank faces pressure to act sooner rather than later on Iran war fallout, as Kenyan inflation accelerated to a two-year high driven by fuel price spikes from the conflict.

Artificial Intelligence & Technology

The AI sector continues driving unprecedented market performance with South Korea's Kospi doubling and SK Hynix surpassing $1 trillion in value, rivaling the Nasdaq's 1999 surge. Taiwan revised its 2026 growth outlook upward to more than 9% on AI-driven demand for tech goods, offsetting energy cost concerns from the Iran war. Chang Xin Memory Technologies is poised for China's largest IPO since 2022, capitalizing on the memory chip boom that has made the sector more valuable than oil. In a controversial move, Nvidia CEO Jensen Huang joined the board of a prestigious Beijing university, underscoring efforts to maintain ties with China despite geopolitical tensions.

Geopolitical Risk & Insurance

Marine insurance negotiations intensified at Lloyd's as vessels remain stranded or attempt to navigate the Persian Gulf amid ongoing conflict. A Russian drone strike on a Romanian apartment building wounded two civilians, prompting NATO condemnation of Moscow's "recklessness" and raising questions about whether Romania will invoke Article 4 of the alliance treaty. Iran's secret ghost ships continue ferrying sanctioned oil to China through deceptive tactics, while Cuba lost its fuel lifeline after a Russian tanker abruptly changed course amid U.S. oil blockade pressures.

Mergers & Acquisitions

Private equity firm CVC Capital Partners acquired International Flavors & Fragrances' food ingredients division for $4.3 billion, continuing a wave of carve-out acquisitions from major corporate groups. Shutterfly launched a $1.875 billion junk bond and loan offering to refinance its debt pile, while FitzWalter Capital purchased roughly half the bank debt owed by struggling German fiber operator DNS:Net. A legal battle erupted between U.S.-backed rare earth mining companies over alleged technology theft, as the Trump administration seeks to break Chinese dominance in critical minerals.

Banking & Financial Services

Major banks posted robust first-quarter profits despite war and rising interest rates, with JPMorgan Chase CEO Jamie Dimon suggesting trading business could outperform expectations. However, Societe Generale CEO Slawomir Krupa acknowledged the bank's efficiency lags behind peers after three years at the helm. Indonesia and India intervened to prop up their currencies amid energy price spikes, while Xiaomi's profits buckled under memory price pressures and stiff competition in the smartphone market.

Regulatory Developments

The Securities and Exchange Commission is considering changes to "gun-jumping" rules that restrict company communications during IPO processes, potentially spurring more public offerings. Meanwhile, the Commodity Futures Trading Commission cleared the way for cryptocurrency perpetual futures to trade on registered onshore platforms if they meet certain conditions, bringing a popular offshore trading instrument to U.S. markets. Federal Reserve Bank of Kansas City President Jeff Schmid