Public Markets 3 Days

Last updated: May 31, 2026, 5:32 AM ET

Equities & AI Markets

Global equity markets grappled with conflicting signals as Bitcoin slipped below $73,000 despite renewed White House support for the CLARITY Act, while most-shorted stocks jumped 30% in a dramatic short squeeze that punished bearish positions. The pain trade in U.S. equities appears to be for prices continuing upward momentum even after double-digit gains over the prior two months, according to Citadel Securities' Scott Rubner. A nostalgic rally lifted Nokia, Dell and Cisco as these dot-com era survivors capitalized on artificial intelligence enthusiasm, with Ford Motor Co. shares posting their best monthly gain in 17 years on AI-related investor optimism.

China's factory activity worsened in May as disruptions from a five-day break compounded global demand pressures and Middle East conflict costs, sending warning signals through global supply chains. Despite these headwinds, China's export prices jumped at their fastest pace in three years as energy costs and AI-driven demand broke a prolonged streak of deflationary pressure. BlackRock Inc. trimmed equity exposure across its $220 billion model-portfolio business as U.S. equities surged to record highs following strong earnings, while the hunt for next-wave Asian AI beneficiaries intensified amid SpaceX and OpenAI stock offering tailwinds.

Energy & Commodities

Oil markets priced in tentative truce terms as crude futures retreated from recent highs, allowing Treasuries to trim Iran war losses on the week. Industrial metals headed for their best monthly gain since January after the U.S. and Iran reached a tentative deal to extend their ceasefire by 60 days. Natural gas futures posted solid gains in U.S. trading even as hedge funds turned bearish for the first time since 2024 on abundant domestic supplies and reduced export expectations.

India's power generation companies quadrupled natural gas purchases from domestic bourses over recent months to meet surging nighttime cooling demand amid searing summer temperatures. Brazil extended fuel price containment measures by two months to offset Middle East conflict impacts, while Namibia awarded Vitol Group an emergency fuel supply contract running through September to mitigate oil price shocks. India's meteorological department cut its monsoon forecast to 90% of normal, dealing a blow to farmers already facing higher input costs from the conflict.

Fixed Income & Currencies

Japanese government bonds traded mixed in early Tokyo session amid conflicting signals on a potential U.S.-Iran deal, while gold pared recent gains as traders weighed mixed messages on the truce outlook. Finance Minister Satsuki Katayama reiterated Japan's willingness to intervene in currency markets if volatility emerges or speculative moves intensify. France's economy unexpectedly contracted in early 2026, raising concerns about resilience to Iran war fallout and potential fiscal constraints on monetary policy.

M&A & Capital Markets

Saudi Arabia's Mutlaq Al-Ghowairi Contracting Co. shareholders sought up to 3 billion riyals ($799 million) in a Riyadh IPO that would mark the Gulf's first major listing of the year. SoftBank Group Corp. pledged €75 billion to build Europe's largest AI facility in France, placing the country at the center of Masayoshi Son's global ambitions. Mini Max Group Inc. began preparations for a domestic listing as the AI startup challenges rivals including DeepSeek amid intensifying competition.

Paramount Skydance Corp. stretched its $110 billion takeover bid for Warner Bros. Discovery Inc., pulling every lever to sell leveraged buyout debt in an audacious acquisition attempt. Special situations investor Fitz Walter Capital acquired roughly half the bank debt of struggling German fiber operator DNS:Net, according to people familiar with the matter.

Geopolitical Risk & Markets

Taiwan lifted its 2026 growth outlook to more than 9% on AI demand, topping concerns about Iran war-driven energy cost increases. The self-ruled island vowed not to be silenced after China expelled a New York Times reporter over an interview with Taiwan's leader, escalating cross-strait tensions. China warned of resolute retaliation if the European Union proceeds with new restrictive trade measures following May 29 policy discussions.

Delfin Midstream Inc. moved closer to greenlighting the first U.S. floating LNG export project, potentially reshaping American natural gas export capabilities. Qatar signaled willingness to negotiate temporary Hormuz transit fees to clear naval mines and restore normal passage through the strategically vital waterway. Kazakhstan offered to take custody of Iran's uranium stockpile, addressing one of the thorniest issues in U.S.-Iran war termination talks.

Citadel Securities posted record $4.3 billion in trading revenues during the first quarter as Iran volatility drove earnings, with net income reaching $1.9 billion amid oil price and Treasury rate fluctuations. The market maker lost its court fight against IEX Group Inc.'s new options exchange that intentionally slows order execution, after a federal appeals court rejected Citadel's challenge.