Public Markets 3 Days

Last updated: May 29, 2026, 8:31 PM ET

Equity Markets

U.S. equities posted their longest weekly winning streak since 2023 this week, propelled by AI enthusiasm and hopes for an Iran ceasefire extension, with S&P 500 futures rising 0.3% in premarket trading. The rally accelerated despite a reality check in space stocks after a Blue Origin rocket explosion, though Wall Street's positioning suggests caution may be costly—most-shorted stocks jumped 30% as hedge funds dumped crash protection. Citadel Securities capitalized on the volatility, posting a record $4.3 billion in trading revenues and $1.9 billion in net income during the first quarter as oil prices and Treasury rates fluctuated. Meanwhile, BlackRock is scaling back equity exposure across its $220 billion model-portfolio business after what it described as "generational" earnings, and Goldman Sachs warned that South Korea's leveraged ETFs tracking chipmakers could amplify market volatility.

Fixed Income & Currencies

Treasury yields headed for their best week since the war began as oil retreated, with the bond market's return to pre-war calm attracting significant options activity from traders betting the tranquility won't last. The WSJ Dollar Index rose 0.61% this month to 95.58 despite a 0.1% decline on Friday, leaving strategists wary of further gains amid expectations of higher U.S. interest rates. Deutsche Bank raised its 10-year Treasury yield forecast based on the new Fed leadership under Chairman Kevin McCallum, while Fed's Williams maintained that monetary policy remains well-positioned to respond to economic effects of the Iran conflict. Mortgage rates climbed to their highest level since August, restraining home-purchase activity and prompting a sharp pullback in refinancing applications.

Commodities & Energy

Brent crude fell 19% in May, its sharpest monthly decline since 2020, lifting stocks to fresh records as investors priced in potential peace dividends. TotalEnergies' oil trading operations generate approximately $2 billion annually, according to CEO Patrick Pouyanné, highlighting the substantial profits available in commodity markets even as geopolitical tensions ease. Aluminum exports from Rio Tinto to the U.S. rebounded to pre-tariff levels, while iron ore headed for monthly losses as a short-lived rally from a Chinese coal mine disaster faded. Chinese export prices jumped at their fastest rate in three years, breaking a long streak of deflation as global energy costs surged and AI demand intensified. Three sanctioned Russian oil tankers suffered drone attacks off Turkey's Black Sea coast, underscoring ongoing supply chain risks.

Mergers & IPOs

Quantinuum, the Honeywell-backed quantum computing company, is considering increasing the size of its initial public offering amid growing investor appetite for cutting-edge technology. Universal Music Group rejected Bill Ackman's $65 billion buyout offer, with its largest shareholder opposing the deal on valuation grounds, while EasyJet attracted takeover interest from private credit firm Castlelake that could remove another UK-listed company from public markets. OpenAI has discussed adding Citigroup and JPMorgan to its IPO banking lineup, and Warner Bros. Discovery priced $15 billion of investment-grade loans amid high demand as it prepares for acquisition by Paramount Skydance. Stark, a German drone startup, is set for a €2.5 billion valuation in new fundraising targeting at least €300 million from investors.

Corporate Developments

BP's leadership crisis deepened as Meg O'Neill took the helm of the energy giant following Chairman Albert Manifold's ouster amid a bullying scandal that coincided with attempted turnaround efforts. BYD unveiled an autonomous-driving chip as the Chinese automaker seeks new growth drivers beyond its competitive electric vehicle lineup, while Unilever announced plans to build a new U.S. research facility in New Haven, Connecticut—the company's largest American R&D investment in four decades. Nvidia's Jensen Huang will join the board of a prestigious Beijing university, underscoring the chipmaker's push to maintain ties with China despite geopolitical tensions. Jamie Dimon indicated JPMorgan could deploy up to $20 billion on acquisitions, citing the Trump administration's lighter regulatory approach that has freed $50 billion in excess capital.

Regulatory & Policy

The SEC proposed killing the climate change disclosure rule that would have required public companies to report significant climate-related risks, marking a dramatic shift from the Biden-era regulatory framework. The White House is reviewing a CFTC proposal to supervise prediction markets, representing the agency's latest effort to establish jurisdiction over event contracts amid growing competition from platforms like Kalshi