Public Markets 3 Days

Last updated: June 23, 2026, 8:30 PM ET

Global Markets React to Geopolitical Shifts and Tech Selloff

Equity markets across Asia extended a tech-driven selloff as concerns mounted that the artificial intelligence boom may have surged too far, too fast. The Nikkei 225 fell 2.1%, while the Kospi Composite dropped 1.8%. In Europe, the STOXX Europe 600 was poised to tumble as the tech selloff reverberated across continents. The selloff in U.S. stocks has brought the S&P 500 Index to a "crucial inflection point," with chart watchers scouring key technical thresholds for signs of a potential bottom. This sentiment spilled into the options market, where traders are building up bets that the broader market overreacted to the Federal Reserve's hawkish pivot by pricing in a series of interest-rate hikes.

Energy Prices Fluctuate Amid Mideast Tensions and Supply Signs

Oil futures declined in early Asian trade as indications emerged of a potential easing of supply disruptions in the Middle East. This decline was further supported by news that oil exports from the United Arab Emirates had recovered to nearly 85% of pre-Iran war levels in early June. More tankers are now openly crossing the Strait of Hormuz as progress is made toward peace talks between the U.S. and Iran, though ship insurers like Allianz SE are still bracing for significant claims from vessels damaged during the recent conflict in the region. European natural gas prices edged higher after initial shaky progress in U.S.-Iran peace talks, and a malfunction at a Qatar domestic gas plant resulted in a blast with 18 missing and dozens injured. Despite these disruptions, the UK expects secure power supplies this winter, according to the National Energy System Operator NESO.

Tech Sector Faces Scrutiny Amid AI Hype and Regulatory Pressure

The artificial intelligence boom is facing increased scrutiny, with fears growing about the sustainability of the sector's meteoric rise. Stocks retreated sharply as concerns over AI spending and valuations intensified. Chip maker Cerebras nearly doubled revenue but projects negative full-year margins, highlighting the substantial costs associated with the AI buildout. In a significant index change, Google-parent Alphabet will replace Verizon in the Dow Jones Industrial Average, effective before the market opens on June 29. Meanwhile, the U.S. is pressing Meta to agree to AI safety reviews, urging the tech company to allow government evaluations after ordering Anthropic to do so. The National Security Agency also lost access to a powerful AI model amid a dispute with Anthropic, underscoring the administration's reliance on advanced AI for cybersecurity even as it clashes with developers.

Gold and Precious Metals See Volatility

Gold extended its decline, falling below $4,100 as a tech-led selloff on Wall Street prompted investors to liquidate bullion holdings to cover losses elsewhere. Gold settled 1.24% lower at $4129.90, with silver falling nearly 5.4%, marking the third consecutive session of declines for both metals as per WSJ data. Gold gained in early Asian trade, with its direction seen as sensitive to geopolitical issues and evolving expectations around monetary policy, according to Exness market analysts.

Corporate Dealmaking and Financial Sector Movements

In a major retail acquisition, Walmart is paying $1.4 billion for Vibe.co, an advertising technology firm that enables advertising through connected TVs, marking its biggest deal in two years. Edgewell Personal Care Co., the maker of Schick razors, saw its shares leap nearly 18% after rejecting an unsolicited takeover offer from private equity firm Yellow Wood Partners on Tuesday. In the private credit sphere, a $7 billion fund managed by Morgan Stanley is capping investor withdrawals at 5%, allowing less than half of the redemptions requested. JPMorgan Chase & Co. received SEC approval to offer monthly redemptions on a new interval fund that invests in private and public credit, as the direct-lending industry grapples with heightened redemption requests this quarter.

China's Economic and Diplomatic Maneuvers

China is taking steps to broaden the use of its currency by linking its offshore and onshore yuan markets a move toward global use. The country is also restricting trading with some U.S. rare earth companies, introducing export controls in retaliation for what it deems Washington’s “wrongful” actions on trade. A Chinese robot maker, Coowa, is gearing up for a Hong Kong IPO, with its valuation standing at over $3 billion after its latest funding round raising more than $600 million. Meanwhile, Beijing's green tech spending and the U.S. oil price shock are supplanting the EU carbon pricing model, positioning China and the U.S. as accidental climate saviors.

Geopolitical Tensions and Defense Spending

The U.S. Senate voted to curb President Trump’s war powers, with a measure instructing him to halt military operations against Iran or seek congressional authorization, a move that rebuked his authority on the Iran war. President Trump has reiterated that funds from any unfrozen Iranian assets would be used for grain shipments, offering cautious hope for American farmers seeking new markets. The International Maritime Organization is initiating an evacuation plan for over 11,000 seafarers stranded in the Middle East following the U.S.-Iran peace deal as reported by Bloomberg. Germany is reportedly set to scrap plans for its largest warship since World War II, the F126 frigate program, due to cost overruns and delays according to the Financial Times. Venture capital funding into defense tech has surged to $12 billion, with this year's total already surpassing 2025's, fueled by soaring valuations amidst ongoing global conflicts and fears of a hype cycle.

Housing Market Challenges Persist

The housing market continues to present difficulties, with KB Home reporting lower revenue and a narrowed full-year outlook, indicating that challenging market conditions persist. The company’s revenue fell to $1.11 billion from $1.53 billion a year prior. Congress has cleared a housing bill for the President’s signature, marking a rare bipartisan achievement after considerable debate in the House.

Other Notable Market Developments

In the UK, a rare summer power supply warning was issued for Wednesday evening as soaring temperatures put significant stress on the energy system according to Bloomberg. China is reportedly choking shipments of critical minerals to Japan, impacting companies and prompting calls for Prime Minister Sanae Takaichi to seek a diplomatic resolution with Beijing over the export slowdown. MSCI Inc. has reclassified Bulgaria as a frontier market, while keeping Argentina and Vietnam unchanged in its latest review of global stock indexes as per Bloomberg. MSCI also kept South Korea in its emerging-market index, refraining from a review process that could elevate its stock market to developed-market status a significant decision. Separately, MSCI has again postponed its review of Indonesian equities until November, requiring more time to assess the effectiveness of recently announced transparency reforms according to market sources.

SpaceX is pitching investors attractive yields in a $25 billion bond deal, with bankers upsizing the offering as high borrowing costs lure investors into the market. The company is selling investment-grade bonds for the first time, signaling the start of a significant borrowing spree to fund its AI ambitions following its record $75 billion IPO as detailed by Bloomberg. However, shares in Elon Musk’s AI and rockets group have tumbled more than 16%, shedding $400 billion in market value following a fresh rise in U.S. bond yields FT reports.

In a significant move for the advertising technology sector, Walmart is acquiring Vibe.co for $1.4 billion, a deal that enables advertising through connected TVs and represents the retail giant's largest transaction in two years according to the WSJ.

The company behind Ether, the world's second-largest cryptocurrency, is cutting its budget by 40% amid a "challenging era" for digital assets as reported by Bloomberg.

Building materials group CRH Plc. is nearing its largest-ever deal to acquire competitor Arcosa Inc., with an agreement potentially coming as soon as next week according to the Financial Times.

In a notable shift for Japanese equities, which have long been viewed as a value market, they are now attracting growth funds as AI-linked firms ascend to the top of market-capitalization rankings, surpassing traditional manufacturers Bloomberg notes.

The U.S. Treasury market is resting on "shakier ground," with reforms deemed necessary to bolster the financial world's backbone according to the Financial Times.

The dollar touched its highest level since November on Tuesday as traders cemented their views on the Federal Reserve hiking interest rates this year Bloomberg reported.

The Bank of Canada Governor, Tiff Macklem, stated that looser bank capital rules alone will not stimulate economic activity, echoing analysts who questioned the impact of a recent regulatory change as per Bloomberg.

British insurers sold domestic super-long government bonds in May, reversing their earlier stance as yields climbed to multi-decade highs Bloomberg data shows.

The Portuguese government is planning to establish a sovereign wealth fund to maintain stakes in strategic economic sectors states the Premier.

The German and French governments are poised to hold equal stakes in KNDS NV, a prominent European defense company, as it prepares for an initial public offering according to Bloomberg.

The U.S. Supreme Court has limited the scope of foreign human rights claims, refusing to consider a complaint alleging Cisco enabled Chinese surveillance of a banned religious group FT reports.

The U.S. Treasury market requires reforms to bolster its foundation, as it currently rests on "shakier ground" according to the Financial Times.