Public Markets 8-Hour Briefing
×Market Volatility & Tech Selloff
Tech stocks slid 1.9% as AI spending fears returned, with the Nasdaq falling despite better-than-expected results from Nvidia on Wednesday. The S&P 500 ended lower across 7 of 11 major groups, while Treasury yields hit their lowest level since November as investors sought safety amid the tech sector's decline. Salesforce eased AI concerns with a strong outlook and announced major buybacks, contrasting with C3.ai which slashed 26% of its staff after CEO admitted failure and "burning too much money." The broader software sector faces scrutiny as Calpers remains unfazed by private credit stress driven by AI's potential threat to software valuations.
AI & Semiconductor Developments
Nvidia CEO Jensen Huang declared his company is now the "largest networking company in the world," while Broadcom expects to sell 1 million 3D stacked chips by 2027. Morgan Stanley projects hyperscaler AI spending will exceed dot-com peak levels, though Nvidia CEO pushed back on the "Saa Spocalypse" narrative, calling it a "deep misunderstanding." Meanwhile, C3.ai faces deepening turnaround risks after missing revenue targets, prompting a downgrade from Citizens. The AI boom is creating winners beyond the "Mag," with copper manufacturers like Revere Copper Products ramping up US investment as tariffs and surging data center demand lift earnings at America's oldest copper manufacturer.
M&A & Corporate Moves
Victory Capital sparked a bidding war with an offer for Janus Henderson, aiming to trump an agreed deal led by Nelson Peltz's Trian Fund Management. Elliott Management is seeking London IPO pitches for its book retailers Barnes & Noble and Waterstones, while State Farm will pay a record $5 billion dividend to auto clients after posting strong underwriting profits. Walmart agreed to a $100 million FTC settlement over driver pay allegations, and e Bay announced plans to cut 800 jobs in a strategic restructuring. Blackstone priced a $400 million bond amid software turmoil, disclosing continued stress in one of its largest investments.
Global Markets & Currency Moves
China's yuan hit a 35-month high as the dollar keeps falling amid tariff uncertainty. Colombia's peso sank most since 2020 on election jitters after a new poll showed leftist Senator Iván Cepeda with a wide lead. Hong Kong is staking its claim on the global gold trade, building out bullion infrastructure to become a regional hub. The Korean stock market emerged as the hottest in the world, with the KOSPI surge showing almost no precedent according to analysts. Swiss bank MBaer faces being cut off from the US financial system over alleged links to Iran and Russia.
Energy & Commodities
BP is aggressively expanding shale drilling, bucking the conservative approach of many rivals as the UK oil giant seeks to reverse years of anemic output. Gulf petrostates rushed to export crude amid fears of a US strike on Iran, with Saudi Arabia and the UAE boosting shipments as contingency plans were drawn up for potential disruption to oil flows. US power-plant pollution rose sharply in 2025, marking a rare uptick in an otherwise long-term downward trend partly because of more coal being burned to generate electricity. Indra Sistemas shares jumped close to 22% to an all-time high after reporting a seven-fold uptick in defense orders driven by Spain's armed forces overhaul.
Fixed Income & Banking
Fed Vice Chair Michelle Bowman said regulators are getting close to releasing a revised version of the bank capital proposal known as Basel III endgame. Fed Governor Stephen Miran said he thinks the Fed needs to cut interest rates by about a percentage point this year, with four cuts being appropriate. Treasury 10-year yields reached the year's low as stocks fell, while State Farm posted strong underwriting profits enabling a record $5 billion auto client dividend. The US is becoming increasingly dependent on its closest allies to fund its swollen debt burden, exposing a vulnerability in the $30 trillion Treasuries market as others flee, according to Bloomberg Markets.
Private Markets & Alternative Assets
Carlyle Group CEO Harvey Schwartz suggested asset managers should have been more forthcoming about the relative illiquidity of investment funds sold to individual investors. Lazard veteran Arif Joshi is joining Bramshill Investments to help launch a hedge fund focused on emerging market opportunities. Trafigura saw its award climb to $700 million after a court victory against Indian tycoon Prateek Gupta, finding he had devised "fraud on a grand scale." RBC is eyeing Canada's expected boom in defense infrastructure and energy spending as one way to deploy its capital, while HSBC cut US exposure and boosted emerging market equities.