Public Markets 3 Hours

Last updated: June 1, 2026, 5:32 AM ET

Energy & Geopolitics

Oil prices climbed more than 3% after the U.S. and Iran exchanged fresh military strikes, with futures rising as investors weighed renewed hostilities against ongoing diplomatic efforts. The U.S. military confirmed conducting "self-defense strikes" on targets in southern Iran, prompting Iran to retaliate by targeting a military base in response. Despite the geopolitical tensions, U.S. stock futures pointed to an extension of May's record-setting rally, suggesting markets were pricing in limited escalation risks. Gold prices fell more than 1% on a firmer dollar and rising crude futures as the safe-haven appeal diminished amid uncertainty about potential diplomatic resolution.

Equities

Hedge funds purchased US equities at the fastest pace in six weeks as the S&P 500 extended its historic winning streak, according to Goldman Sachs' prime brokerage desk. In corporate news, Easy Jet shares jumped after the low-cost airline said a takeover bid would be "highly opportunistic," while SoftBank overtook Toyota after more than 20 years to become Japan's largest company by market capitalization, powered by demand for AI stocks. The Nasdaq advanced in futures trading, maintaining positive momentum despite climbing oil prices and regional instability.

Fixed Income & Currencies

Euro-area consumer inflation expectations eased slightly in April, offering some relief to the European Central Bank, though policymakers are still likely to raise interest rates. The euro could rise slightly if ECB survey shows inflation expectations remain elevated, according to ING, which expects the currency to trade in a narrow range. In Switzerland, the economy grew less than estimated at the start of the year, weighed down by stalling consumer demand and a drop in investment. Meanwhile, the Bank of France plans to lower its growth forecasts later this month after a disappointing start to the year and persistent Middle East tensions.

Global Economic Indicators

Pakistan's inflation accelerated to the highest in two years as the war in the Middle East pushed up energy import costs, while the country outlined a 4% growth target for the next fiscal year despite crude price shocks. UK house prices fell in May amid Iran turmoil, with higher mortgage rates blamed for the Nationwide index