Public Markets 3 Days

Last updated: June 26, 2026, 5:30 AM ET

Public Markets Overview

Global equity markets experienced a notable downturn, with US stocks posting their first outflows in three months as the artificial intelligence fervor began to cool. Investors pulled significant funds from technology-focused exchange-traded funds, signaling a potential shift away from the AI trade that has dominated recent market movements. This trend was mirrored in futures markets, with Nasdaq futures falling as tech stocks extended their declines, influenced by sharp drops in Asian markets and persistent investor skepticism over high AI valuations. Reports of OpenAI considering a delay to its initial public offering further soured sentiment around the AI boom, contributing to a deepening tech selloff. Emerging market stocks also slid, marking their largest decline in nearly three weeks, primarily dragged down by the global tech selloff which notably impacted South Korean equities, even triggering a trading halt. Asia-Pacific Markets & AI Concerns

Asian stock markets tumbled as uncertainty surrounding the artificial intelligence boom continued to rattle technology shares. The region's performance was heavily influenced by a global tech selloff, with South Korean stocks experiencing a significant slump, leading to a second trading suspension in a week due to jitters over AI-driven valuations. This volatility in South Korea's benchmark equity index has drawn comparisons to the meme-stock frenzy. Concerns were exacerbated by Apple's decision to raise prices for its products, fueling worries that escalating component costs could curb demand for devices and decelerate the memory chip rally . Chinese hardware technology stocks, which had been on a tear, now face the challenge of demonstrating earnings to sustain their rally. Meanwhile, T. Rowe Price is anticipating a pullback in the yuan, viewing it as "expensive" against a basket of currencies from China's major trading partners. Indonesia is set to increase its cash holdings in state-owned banks to an estimated $22 billion to fuel economic growth.

European Markets & Economic Indicators

European natural gas prices edged higher as traders monitored risks associated with the Strait of Hormuz following an attack on a cargo ship. The broader European Central Bank (ECB) noted a significant decrease in consumers’ short-term inflation expectations for the next year in May, even before the resolution of Middle East hostilities. This easing of inflation expectations, coupled with a decline in oil prices as Middle East peace talks progressed, has led some economists to pare back forecasts for ECB interest rate hikes. In Germany, shares of Zalando SE plunged after the country's financial regulator launched a probe into the online fashion retailer's financial statements, wiping out most of the stock's year-to-date gains. Energy & Commodities

Oil futures experienced a technical correction, falling from recent highs despite ongoing tensions in the Middle East. While Brent crude prices remain elevated since the start of the Iran conflict, predictions of $200-a-barrel crude have not materialized, largely due to the Strait of Hormuz remaining largely open. An attack on a container vessel in the Strait of Hormuz renewed concerns about safe passage through the critical waterway, though traffic continued to flow in both directions, 98. Insurers have responded by slashing war premiums for ships transiting the Strait of Hormuz by more than half, reflecting the perceived decrease in risk as a ceasefire deal holds. Kazakhstan's giant Karachaganak oil and gas field reduced crude output by over a quarter following a drone attack on a Russian processing plant that handles its gas. Aluminum headed for its fourth consecutive weekly decline, pressured by a renewed selloff in Asian tech stocks and returning Middle East supply. Palm oil, however, advanced on rising Malaysian exports and expectations of increased demand from India as the festival season approaches. China's crude oil imports are set to fall further in June, extending a subdued appetite since the Iran war began.

Corporate & Tech Developments

Intel's chip business is showing early signs of recovery after years of struggle, though a full turnaround remains distant. Advanced chip packaging, essential for boosting AI computing power, has heightened the United States’ reliance on Taiwan. The memory-chip sector, driven by AI demand, has seen increased interest in semiconductor factory work, though job prospects remain uncertain. Qualcomm announced it is acquiring Modular Inc. for approximately $3.9 billion in stock to bolster its AI software capabilities for data centers. The company also revealed Meta as its first major Big Tech customer for data center chips, leading to a significant boost in its shares. SK Hynix Inc. shares surged following its announcement of a $29 billion U.S. listing plan, which analysts believe will enhance valuations through capacity expansion and increased foreign investment. Apple's price increases for its products have sparked concerns about rising component costs potentially slowing the memory chip rally.

In the retail sector, Permira-backed sustainable womenswear brand Reformation Inc. filed for a U.S. initial public offering, disclosing rising sales. Meanwhile, UK airport operator Heathrow has lowered its passenger outlook, citing concerns over global travel demand influenced by Middle East volatility .

Financial Institutions & Dealmaking

JPMorgan Chase & Co. has named Doug Petno and Troy Rohrbaugh as co-presidents, reshaping the succession race for CEO Jamie Dimon, with Marianne Lake no longer considered a contender. The bank also raised its S&P 500 target to 7,800, anticipating a "blue sky" scenario driven by stronger earnings growth and a potential Iran war peace deal. Wall Street banks are increasingly embracing the dollar, with many foreseeing a turnaround in its fortunes. In the cryptocurrency space, Vitalik Buterin, a co-creator of Ethereum, indicated that the nonprofit behind the second-largest cryptocurrency is reducing its budget by 40% due to challenging market conditions. Binance announced it will cease providing services to EU clients following its failure to secure a license under new MiCA regulations.

In M&A activity, H.B. Fuller Co. has agreed to acquire UK-listed Advanced Medical Solutions Group Plc for £659 million ($870 million). Navis Capital Partners is exploring the sale of its majority stake in the nuts and snacks company Dan-D Foods Ltd. . Tankmaker KNDS NV has initiated the process for an initial public offering in Frankfurt and Paris, aiming to solidify its position as a pan-European defense company.

Regulatory & Legal Developments

The U.S. Supreme Court has expanded President Trump's immigration powers, ruling that the Trump administration could end humanitarian protections for many Haitians and Syrians, potentially paving the way for their deportation. The court also refused to consider a complaint alleging Cisco enabled Chinese surveillance of a banned religious group, limiting the scope of foreign human rights claims in U.S. courts. In the UK, companies are reportedly accelerating layoffs of high earners in anticipation of the Labour government removing the £123,543 cap on unfair dismissal payouts as part of broader worker rights reforms. A UK competition probe into commodity day traders, the "Essex Boys," may conclude with a £1 million ($1.3 million) charitable donation.

Geopolitical & Economic Trends

The Strait of Hormuz remains a focal point, with ongoing monitoring of vessel traffic following a ship attack. Despite the incident, traffic flow has continued, although some shipowners are reviewing their departure plans. The geopolitical tensions have reinforced the argument for accelerated renewable energy deployment to enhance resilience. In China, the government's new five-year energy plan allows for growth in coal consumption, prioritizing energy market stability over climate concerns. Qatar anticipates a return to normal liquefied natural gas output within weeks from undamaged parts of its facility. Australia's housing market has seen a significant downturn, wiping A$185 billion ($128 off the value of its top two markets this quarter, potentially impacting consumer wealth.

In the United States, President Trump has requested $11.1 billion in new aid for struggling farmers. The Supreme Court has handed Trump two victories on immigration enforcement. Meanwhile, a proposal for the strictest statewide rent control in the U.S. was struck down by the Massachusetts Supreme Judicial Court.

Other Markets & Industries

The drone startup Elroy Air is reportedly nearing an $800 million SPAC deal to go public. SpaceX, while undertaking a large debt issuance to fund its cash-burning operations, is also cutting its annual interest burden. Its stock price has reportedly slumped after its initial public offering, briefly trading below its listing price. In the aviation sector, Heathrow has warned of a slowdown in global travel demand due to Middle East volatility.

In the healthcare sector, Demant A/S is experiencing its best quarterly performance in 26 years, driven by the launch of a new AI-equipped hearing aid. The luxury watchmaker Swatch is seeking $170 million from Samsung for alleged digital cloning of its watches.

The Philippines, the United Arab Emirates, and Indonesia are set to begin accession talks for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), advancing their free-trade initiatives. The Hong Kong dollar has fallen to a 10-month low against the US dollar, pressured by a stronger greenback and expectations of further Federal Reserve rate hikes.