Public Markets 8 Hours

Last updated: May 7, 2026, 5:30 PM ET

Equities and Corporate Earnings

The broader market experienced a pullback from recent records, though strong quarterly software reports helped limit the downside as earnings season barrels forward. In travel, Expedia posted revenue of $3.43 billion, bolstered by a 25% jump in its business-to-business segment, while Lyft achieved 14% revenue growth in Q1, driven by increased rides and partnerships. Conversely, some consumer-facing companies faced headwinds; Whirlpool’s stock plummeted 20% after it halved earnings guidance amid weak consumer confidence, and Papa John’s noted customers trading down to smaller pizzas due to inflation pressures.

Technology and digital platforms offered mixed results, with DraftKings beating revenue estimates at $1.65 billion, a 17% year-over-year increase, even as crypto exchange Coinbase swung to a loss following recent cost-cutting job reductions. Private credit markets continue to swell, evidenced by corporate card startup Ramp seeking funds at a $40 billion valuation, a 30% rise in six months, while private equity giant Carlyle reported a Q1 loss despite accumulating a record $96 billion ready to deploy. Meanwhile, cloud provider CoreWeave widened its Q1 loss to $740 million as operating expenses of $2.22 billion outpaced revenue gains.

Geopolitics and Commodities

Market sentiment remains dominated by geopolitical risk, causing oil futures to recover early losses as initial optimism regarding a U.S.-Iran deal faded into caution, a volatility noted by Citi predicting wild price swings until the conflict’s trajectory is clearer. This uncertainty is influencing fixed income, with Treasury yields snapping two days of declines, while the WSJ Dollar Index slipped below pre-war levels for a third straight day. Energy sector giants benefited directly from the Middle East tensions; Shell reported profits near $7 billion in the first quarter, more than doubling the prior quarter’s result. The conflict has also accelerated defense spending, as the U.S. authorized $17 billion in missile sales to Gulf nations due to depleted air defense stockpiles.

Concerns over energy supply stability are prompting international calls for increased output, with the IEA urging Canada to accelerate energy exports, while the ECB signaled that a persistent energy shock from the conflict could force interest rate hikes. In the natural gas market, futures posted moderate gains following a smaller-than-expected storage build, though Cheniere Energy plunged nearly 10% after posting a surprise $3.5 billion loss on derivatives used to hedge against price volatility.

Monetary Policy & Financial Regulation

Federal Reserve officials are expressing caution regarding the path forward, with Minneapolis Fed President Neel Kashkari citing the Iran war as a source of rate uncertainty. Boston Fed President Susan Collins addressed FOMC dissent on a podcast, discussing where rates might settle by 2026. Regulatory scrutiny appears to be increasing across several financial areas; Treasury Secretary Scott Bessent met with insurance regulators to discuss their exposure to the growing private credit sector. Furthermore, the audit watchdog oversight rules are under review, as one SEC official suggested rescinding independence standards for the Public Company Accounting Oversight Board.

Deals, Listings, and Corporate Strategy

Wall Street banking executives are signaling turnarounds, with Citi management asserting the engine has been rebuilt, even as initial modest profitability targets disappointed some investors. Elsewhere in banking, Citadel Securities is clearing its own equity options, ending a decades-long relationship with Bank of America Corp.. On the M&A front, GameStop’s $56 billion bid for eBay is reportedly being avoided by merger arbitrage specialists due to its unconventional nature. In biotech, Gilead Sciences drastically cut its 2026 earnings outlook, now projecting an adjusted loss between 65 cents and $1.05 a share, contrasting sharply with prior guidance predicting $8.45 to $8.85 in earnings due to R&D expenses from acquisitions. Meanwhile, Elon Musk's SpaceX is planning $55 billion in spending to build an AI chip factory called Terafab, centralizing efforts to dominate artificial intelligence.