Public Markets 3 Days

Last updated: June 25, 2026, 11:30 PM ET

Public Markets Briefing

Asia-Pacific Markets Navigate Tech Volatility and Currency Pressures

Asian currencies consolidated against the dollar in early trade, with some analysts suggesting diminished prospects for further Federal Reserve rate hikes could offer support. However, the Hong Kong dollar hit a 10-month low against the greenback, reflecting broader pressure on regional currencies from a strengthening US dollar and persistent expectations of Fed tightening. In equity markets, South Korean stocks experienced a significant slump, with chipmakers bearing the brunt of renewed selling tied to swings in global artificial intelligence sentiment. China's hardware technology stocks are looking to earnings to sustain their recent rally, as investors seek concrete financial results to validate the sector's ascent. Meanwhile, Japanese government bonds edged lower due to potential position adjustments by investors, following mild price gains in the prior session.

Global Commodities Face Shifting Demand and Geopolitical Headwinds

Iron ore is set for its seventh consecutive weekly loss, marking the longest losing streak since 2022, as seasonal demand weakens and mill margins contract. Oil futures experienced a technical correction following overnight gains, although prices later held their gains amid renewed concerns over safe passage through the Strait of Hormuz after a cargo ship attack. Movement through the Strait of Hormuz was halted following the attack, prompting a UN agency to pause an evacuation of ships from the Persian Gulf. Concerns over the Strait of Hormuz also influenced oil markets, with one analysis suggesting the situation could evolve into a broader fossil fuel crisis if renewable energy deployment is not accelerated as a response. Asian refiners have subsequently slowed their purchases of Middle Eastern crude after a recent buying spree, with majors and traders absorbing some of the surplus barrels. Iraq walked back its threat to leave OPEC over output limits, clarifying that such a move was not under consideration.

US Markets React to Inflation Data, Tech Sector Shifts, and Regulatory Actions

US stocks finished mixed as investors rotated out of technology and artificial intelligence shares into other sectors. The Dow Jones Industrial Average rose 0.14%, while the Nasdaq Composite and S&P 500 edged lower. Micron Technology Inc.'s earnings report took on new gravity amid investor concerns about the sustainability of the AI boom, with the company's results eventually helping to calm investor fears after a market sell-off. Apple's stock slumped despite the broader tech rebound, with the tech giant also increasing prices on some Mac and iPad models by $200 or more due to higher memory costs. The US Treasury market rests on shakier ground, with calls for reforms to bolster its stability. Federal Reserve actions are also influencing markets, with the dollar wrapping up one of its best months in a year amid expectations of Fed rate hikes, although some data points have tempered these expectations .

Corporate Dealmaking and Executive Succession at Financial Giants

JPMorgan Chase & Co. is seeing its CEO succession race heat up, with longtime lieutenant Marianne Lake recently informed she is no longer a contender for the top job, and new deputies being named . Separately, the company's CEO succession plans have been upended again. In the private credit space, a $7 billion fund managed by Morgan Stanley is capping withdrawals at 5%, allowing less than half of the redemption requests shareholders submitted in the second quarter. On the IPO front, Reformation Inc., a sustainable womenswear brand backed by Permira, has filed for a US IPO, disclosing growing sales. Another company, Lingyi iTech Guangdong Co., a Chinese maker of electronic devices, is set to begin trading in Hong Kong after raising HK$8.3 billion ($1.06 in a share sale.

Artificial Intelligence and Tech Sector Face Scrutiny and Investment

OpenAI is reportedly leaning toward waiting until 2027 for an IPO, a delay that comes as competition intensifies with open-source models. The US government has also asked OpenAI to stagger the release of its new model to vet users. Investment in chip manufacturing is seeing significant backing, with the US investing $250 million in I-Pulse Inc. for semiconductor development. ON Semiconductor is set to acquire Synaptics in an all-stock deal valued at $7 billion enterprise value, with Synaptics' AI compute platform and other technologies expected to bolster ON Semiconductor's offerings. Despite the enthusiasm for AI, a new study casts doubt on whether AI is adept at stock-market timing, suggesting large-language models may not outperform the market over extended periods.

Regulatory and Political Developments Shape Markets and Industries

California is preparing to vote on a billionaire tax, a move that has drawn opposition from the wealthy, who are backing ballot initiatives to potentially nullify the measure. In New York City, Mayor Zohran Mamdani's pledge to freeze rents for rent-stabilized apartments has been approved by a city panel, though thousands of apartments under a separate program face significant rent increases. The Supreme Court has expanded Trump's immigration power by ruling that the Trump administration could end humanitarian protections for many Haitians and Syrians, clearing the way for their potential deportation. This decision has plunged many migrants into limbo, rendering 1.3 million people vulnerable to deportation. The court also rejected a lawsuit claiming Cisco Systems aided China in targeting Falun Gong, a decision with potential implications for corporate liability in international human rights abuses.

Legal Sector Grapples with AI and Evolving Risks

The legal industry is shaping its future in response to AI and new firm structures. In-house lawyers are finding that AI opens up opportunities for handling repetitive tasks, though barriers to full embrace of legal tech remain for law firms. Ethical AI disputes are opening the way to a wave of litigation regarding the technology's lawful and responsible use. Wall Street law firms are also pondering a fresh era of insider trading risks, following allegations of illegal information misuse at elite firms.

Global Corporations Face Operational Challenges and Restructuring

Hertz Global Holdings Inc. is heading for a record weekly drop in its stock due to its funding plan and profit guidance. The iconic American restaurant chain Red Lobster's bankruptcy has been linked to its $20 all-you-can-eat shrimp deal, which inadvertently contributed to its financial woes. In the automotive sector, Stellantis NV and Nissan Motor Co. are in talks to acquire assets from the troubled auto-parts maker Marelli Holdings Co. Volkswagen is also selling a majority stake in its engine unit, Everllence, as part of a portfolio streamlining effort. Meanwhile, a fire broke out at a Delta Air Lines refinery in Pennsylvania.

Real Estate and Infrastructure Markets Show Mixed Signals

A Blackstone Inc. loan on a Chicago office tower has gone into default, signaling ongoing challenges for landlords in the commercial real estate sector. In Australia, power demand from data centers is poised to surge, contributing to an almost doubling of electricity consumption by 2050. The Crown Estate in the UK saw its profits fall as a temporary boost from offshore wind farm licensing began to fade. In Vietnam, farmers are facing eviction notices to make way for a $1.5 billion Trump Organization-branded luxury golf resort project.

Other Notable Developments

In the UK, housebuilders are warning of "shockwaves" as tariffs on steel imports double. HSBC Holdings Plc is reportedly considering selling its Canadian business in a move that could fetch about $8 billion. In France, record temperatures have led to hospitals canceling operations due to a lack of air conditioning, and a heatwave has continued to smash temperature records across Europe. Australians are reportedly sleepwalking into retirement, with research indicating half of adults have never sought retirement advice.