Public Markets 3 Days

Last updated: June 24, 2026, 11:30 AM ET

Public Markets Briefing: Key Developments

Equities & Valuations

U.S. stocks are approaching a "blue sky" scenario, according to JPMorgan Chase & Co., with earnings growth and a potential Iran peace deal cited as key drivers. This optimism comes as the AI trade continues to fuel market volatility, with investors maxing out positions in the sector. The meme-stock phenomenon has resurfaced, with Wendy's Co. shares soaring 42% following a viral Reddit post. In contrast, Hertz Global Holdings Inc. shares tumbled the most in two years after issuing a profit warning due to softness in the used car market. Memory chip giant SK Hynix is planning a landmark US listing seeking $29.4 billion, capitalizing on investor demand for AI-related stocks, even as the broader sector experienced a selloff. Micron Technology Inc.'s earnings report is under scrutiny, with investors weighing the sustainability of the AI boom. The S&P 500 steadied following a two-day tech slide, with Nasdaq futures pointing to a positive open. Meanwhile, European equities may struggle to keep pace with US and emerging markets in the second half, as falling oil prices threaten earnings growth.

Technology & AI

Qualcomm Inc. agreed to acquire AI software firm Modular for approximately $3.9 billion in a stock deal, aiming to make artificial intelligence faster and cheaper for its customers. This move underscores the intense competition in the AI space, where Amazon and Google hold a leading position due to their incumbent advantages and innovative approaches. Canada's AtkinsRealis Group Inc. is seeking US approval for its nuclear technology to power the AI boom, highlighting the increasing energy demands of data centers. The growth of AI is also driving wealth creation in Asia's chip powerhouses, with South Korea and Taiwan experiencing booming exports and stock market gains, though this has exacerbated economic divides within these nations. The US government is pressing Meta to agree to AI safety reviews, urging the company to allow government evaluations of its models. The demand for AI computing power is also impacting the residential sector, with Tesla, Sunrun, and Renew Home planning to leverage home solar and battery systems to meet energy needs.

Energy & Commodities

U.S. natural gas futures traded in a tight range, with prices inching higher due to a warmer weather outlook for July, though solid production levels limited gains. The Strait of Hormuz has become a focal point in energy markets, with a closely watched oil indicator flipping to contango for the first time since February as flows from the Middle East are expected to increase following a US-Iran agreement. Iranian crude prices have been slashed as shipments increase after an interim peace deal. Despite this, Thai shippers remain cautious about transit through the Strait. President Trump has called for a probe into U.S. gasoline prices, accusing oil companies of "gouging" customers as crude costs fall. China's independent oil refiners have slashed operating rates to a nine-year low, impacted by the US-Iran conflict. Latin America's two oil giants, Petrobras and Pemex, have agreed to collaborate on oil discovery, production, and refining.

Global Affairs & Geopolitics

Treasury yields slipped amid a lull in Middle East conflict as U.S.-Iran peace talks continued. Secretary of State Scott Bessent indicated that these talks include Iran joining the dollar system and invoicing its oil sales in greenbacks demonstrating a shift toward dollar invoicing. However, U.S. Vice President JD Vance faces political challenges as Trump creates disruptions in Iran negotiations disrupting Vance's path. Secretary of State Marco Rubio is working to reassure Persian Gulf allies regarding the Iran deal reassuring Persian Gulf allies. China has detained two Japanese nationals over alleged rare earth smuggling, escalating a dispute with Tokyo. Ukraine is escalating attacks on Crimea, creating a new pressure point for Russia by isolating the peninsula. France has identified its first case of Ebola in a doctor who had traveled from the Democratic Republic of Congo, with contact tracing underway.

Corporate & Dealmaking

Airbus has been ordered to inspect 16 jets after cracks were found in the wings of its A380 superjumbo jets, prompting the EU's chief aviation regulator to ground five immediately. Rheinmetall shares slumped 16% following reports that Germany may scrap a major warships contract, contributing to a more than one-third stock value decline year-to-date. In the financial sector, UK banks are poised to extend their rally against European peers, benefiting from strong profitability growth. The European Union's competition chief has warned governments against using security risks to stymie bank deals warning against stymieing bank deals. Walmart is acquiring advertising tech firm Vibe.co for $1.4 billion, its largest deal in two years. Accounting firm Eide Bailly is selling a stake to private equity for $1.8 billion, indicating continued PE investment in the professional services industry.

Economic Indicators & Policy

Argentine Economy Minister Luis Caputo's strategy of resisting calls to raise funds in international markets appears to have paid off, with his approach of shunning Wall Street to raise dollars at a rate lower than 7%. In India, benchmark bond yields and swap rates fell to three-month lows as the central bank governor pushed back against expectations for tighter monetary policy. European natural gas edged higher after initial talks between the US and Iran appeared shaky. The UK's High Court ruled in favor of banks in a legal battle over historic loan complaints, finding that the Financial Ombudsman Service unlawfully allowed challenges beyond the 6-year limit. The European heat wave is straining power supply, sending prices soaring due to increased demand and reduced output.

Market Structure & Regulation

The CME's lawsuit against the CFTC is deemed worth reading by some observers. Indonesia faces a potential market-status downgrade by MSCI, with billions of dollars at stake if shareholder transparency does not improve. Hedge funds are set to gain an exemption from EU ESG rules, avoiding categorization requirements. Indonesia is also tightening oversight of financial influencers, requiring disclosure of paid promotions and licenses. Bitcoin's recent selloff is exposing market fragility as the retail trading army retreats.