Public Markets 3 Days

Last updated: May 31, 2026, 8:34 AM ET

Equity Markets

US stocks posted their longest weekly winning streak since 2023 as investors priced in a potential US-Iran agreement, with the S&P 500 climbing 2.1% on the week. Technology shares led gains as Dell Technologies surged 150% from earlier lows after securing Pentagon data-center contracts worth an estimated $2.3 billion, while Nokia shares jumped 8.4% on AI infrastructure optimism. The rally extended to legacy tech names including Cisco, which added 6.2% as investors rotated into companies with established enterprise customer bases. However, concerns over IPO valuations intensified after SpaceX's private market pricing sparked debate over whether ordinary investors would participate in upcoming mega-listings.

A wave of IPO activity hit markets as Quantinuum, the Honeywell-backed quantum computing firm, considered expanding its offering size beyond the initial $2.1 billion target, while property-tech firm Entrata filed for a Nasdaq listing seeking roughly $400 million. The deal-making pace accelerated in media where Paramount Skydance Corp. pushed its audacious $110 billion takeover bid for Warner Bros. Discovery, stretching leverage ratios to 7.2 times EBITDA. Meanwhile, AI super PAC spending topped $15 million as Silicon Valley-backed groups intensified efforts to influence midterm elections, with OpenAI and Anthropic affiliates funding competing political action committees.

Commodities & Energy

Oil futures settled 1.8% higher at $78.30 per barrel on reports that Washington and Tehran had drafted a ceasefire extension framework, though Chevron CEO Wirth warned crude could spike to $120 over summer as the Strait of Hormuz blockade removes up to 13 million barrels daily from global markets. Emergency fuel supply contracts provided temporary relief when Namibia arranged a three-month deal with Vitol Group to mitigate price shocks from the Iran conflict through September delivery. Sugar futures posted their largest monthly gain in four weeks, climbing 4.2% on emerging El Niño weather patterns threatening India's monsoon season and cane crop.

Aluminum markets tightened further as the metal's premium over LME contracts hit $340 per ton amid supply disruptions, with Rio Tinto noting US shipments rebounded to pretariff levels after a 23% sequential increase in May volumes. The base metal squeeze intensified after Polish smelters ramped production to fill supply gaps, with London premiums reaching $1,200 above Shanghai prices. Defense contractors cashed in on heightened tensions as US capital goods orders for military equipment surged to $12.8 billion in April, the second-highest level on record.

Fixed Income & Credit

Japanese banks flooded the hybrid bond market with $8.7 billion in perpetual securities this fiscal year to satisfy Basel III capital requirements, marking the busiest period since 2011. Worthington Steel secured $1.4 billion in leveraged financing to fund its acquisition of German metals trader Klöeckner, pricing the deal at 6.8% interest amid tight credit conditions. European Central Bank official Fabio Panetta endorsed a rate hike without committing to a tightening path, citing resilient inflation pressures even as consumer price expectations could rise further due to energy supply disruptions from the Iran conflict.

The dollar weakened broadly against major peers after reports of a US-Iran agreement, with EUR/USD reaching 1.0850 and sterling climbing to $1.2720. Geopolitical tensions rattled European investors after a Russian drone struck Romania, injuring two civilians and prompting NATO Article 4 consultations that could strain alliance solidarity. Meanwhile, Iceland's currency costs now outweigh benefits according to the Finance Ministry, citing volatile króna swings that have increased import price volatility by 3.4 percentage points annually.

M&A & Corporate Finance

SoftBank committed €75 billion to build Europe's largest AI facility in France, with founder Masayoshi Son positioning the investment as a counterweight to US dominance in artificial intelligence infrastructure. The telecoms-to-tech conglomerate's pledge includes a joint venture with Total Energies for data center power supply, targeting 1.2 gigawatts of capacity by 2030. Malaysia's largest pharmacy chain Big Caring seeks up to $750 million in its IPO, potentially becoming one of Southeast Asia's biggest listings this year as healthcare demand rises. Crypto treasury companies increasingly tapped equity markets for funding, with Strategy Corp.'s digital credit facilities attracting $2.8 billion in new capital as bitcoin holdings surpassed 560,000 tokens.

International Trade & Geopolitics

China threatened "resolute" retaliation if the European Union proceeds with