Public Markets 3 Days

Last updated: June 24, 2026, 5:30 PM ET

Markets Overview

Global markets navigated a complex landscape this past week, with investors closely watching developments in the semiconductor industry, the ongoing geopolitical tensions in the Middle East, and the U.S. banking sector's resilience. The semiconductor sector, in particular, showed significant strength, with Micron Technology shares jumping as projections indicate a chip shortage could persist beyond 2027, fueling robust demand for memory chips and driving the company's revenue and profits higher. This positive sentiment for chipmakers was further underscored by SK Hynix's planned Nasdaq debut, aiming to capitalize on investor enthusiasm for memory-chip stocks despite a recent market sell-off. Separately, Cerebras Systems saw its shares tumble below their initial public offering price, illustrating the bifurcated nature of the AI-driven market.

U.S. Banking Sector banks passed the Federal Reserve's annual stress tests

with flying colors, receiving immediate clearance to boost share buybacks and dividends. The tests, which have seen the Fed release more details in advance, found that institutions like JPMorgan Chase and Bank of America demonstrated strong performance, even in hypothetical economic downturns. These tests indicated that U.S. banks would collectively lose $700 billion in an economic crash, but the passing marks allowed for increased capital distributions. JPMorgan, in particular, raised its S&P 500 target to 7,800, citing a "blue sky" scenario driven by stronger-than-expected earnings and potential peace in the Middle East.

Geopolitics and Energy Markets

Geopolitical developments, particularly concerning Iran, continued to influence energy markets. crude oil inventories fell** for a ninth consecutive week, while gasoline and distillate stocks rose, painting a mixed picture for supply. However, a key oil spread flipped to contango for the first time since February, signaling ample supply as flows from the Strait of Hormuz accelerated following a U.S.-Iran agreement to reopen the waterway. Despite this, U.S. oil shale executives expressed frustration with the White House's communications regarding Iran, stating that erratic messaging sowed confusion and hampered planning. The Senate voted to direct an end to the Iran war, rebuking President Trump on war powers, while Vice President Vance described talks with Iran as "very, very good". The potential for Iran to assert control over the Strait of Hormuz and charge transit fees remained a point of concern for global shipping.**

Artificial Intelligence and Tech Sector

The artificial intelligence boom continued to reshape investment strategies and corporate dealmaking. Nvidia, alongside SpaceX, drove U.S. investment-grade bond sales to a June record, fueled by investor demand for AI-related spending. Qualcomm agreed to acquire AI software firm Modular for $3.9 billion in a stock deal aimed at making AI faster and cheaper for its customers. This acquisition highlights a broader trend of companies seeking to bolster their AI capabilities. Meanwhile, Sunrun surged over 30% on a Tesla deal to supply power for data centers, demonstrating the critical demand for energy infrastructure to support AI growth. The broader tech sector experienced volatility, with global AI sell-offs steadying after a significant downturn, and investors maxing out AI trades contributing to market fluctuations.

Cryptocurrency Markets

Bitcoin faced a significant downturn, hitting a 20-month low below $60,000 as market sentiment soured and retail investors shifted their focus to AI-related stocks. The biggest crypto buyers balked, reviving fears about market fragility as retail participation waned. This retreat exposed a trade-off where Wall Street's scale and legitimacy came with a dependence on retail traders, whose pullback this time around highlighted fresh market weaknesses.

Corporate Deals and Listings

The market saw a flurry of corporate activity, including significant M&A and IPO plans. Abb Vie agreed to buy Apogee Therapeutics for $10.9 billion in cash, bolstering its immunology and inflammation portfolio. Walmart's acquisition of advertising tech firm Vibe.co for $1.4 billion marked its largest deal in two years, aiming to expand advertising capabilities through connected TVs. In the public markets, Doncasters Group's US IPO was reportedly more than 30 times oversubscribed, indicating strong investor appetite for certain industrial offerings. The rebound in special purpose acquisition companies (SPACs) is proving to be a key path to public markets for data center companies, especially those involved in the AI build-out.

Economic Indicators and Policy

Economic indicators presented a mixed picture globally. In Canada, Bank of Canada officials rejected the notion of a recession, though they acknowledged weak growth and labor market slack. The European Central Bank's continued focus on price stability was echoed by Executive Board member Isabel Schnabel, who indicated that further interest rate hikes might be necessary to meet the 2% inflation target. Philip Lane, ECB Chief Economist, also warned that inflation could remain above the target for an extended period. In the U.S., diesel prices fell below $5 a gallon, offering some relief on inflationary pressures, while U.S. natural gas futures traded in a tight range.

Regulatory and Legal Developments

Regulatory actions and legal battles continued across sectors. regulator dropped its probe into ‘Essex Boys’ traders** after they agreed to pay £1 million to charity, following concerns over possible collusion. In the U.S., a judge ordered the government to stop seeking medical records of transgender youth, concerning care provided at New York City hospitals. The CME's lawsuit against the CFTC offered insights into regulatory disputes.**

Real Estate and InfrastructureThe commercial real estate sector continued to** face headwinds, with Blackstone's $343 million loan on a Chicago skyscraper defaulting**, a stark indicator of ongoing landlord challenges. In the U.K., Prologis rebuffed a £16.6 billion takeover approach for Segro, with the world's largest industrial real estate owner urging Segro's board to engage. Meanwhile, Stonepeak raised $2.5 billion in private bonds to refinance a liquefied natural gas export terminal, highlighting continued investment in energy infrastructure.

Global Trade and Emerging MarketsGlobal trade dynamics remained a focus,** with China unfazed by international criticism on trade** as its premier touted the benefits of the country's surging exports. Chinese zinc producers eyed export opportunities to address a domestic glut. In Latin America, Petrobras and Pemex teamed up to jointly discover, produce, and refine oil, signaling a significant collaboration between two major energy players. Cuba announced a sweeping overhaul of its struggling economy, though expert analysis suggested success would depend on buy-in from the U.S. administration. Senegal expressed openness to a debt restructuring amid mounting payment pressures.

Other Notable DevelopmentsIn a significant development for the biopharmaceutical** industry, Nvidia's healthcare head discussed reinventing the doctor experience through AI**, suggesting AI could alleviate physician workload and address staffing shortages. Stripe and Anthropic invested $500 million in combating respiratory diseases, pooling resources for drug discovery and scaling up air-treatment technologies. Meanwhile, easy Jet and its investors held out for an additional £600 million from Castlelake for a potential buyout, indicating a firm stance on valuation from the budget airline and its shareholders.