Public Markets 8 Hours

Last updated: May 15, 2026, 11:32 AM ET

Risk-Off Unleashes Broad Selloff

A sweeping selloff swept across global markets as Iran war tensions rattled investor confidence and inflation fears intensified. S&P 500 futures fell 1% in premarket trade, while U.S. equity and bond markets broadly declined with Treasury yields and oil both rising in a coordinated repricing. Traders dumped chipmakers and other high-flying tech shares after weeks of record-setting gains, as rising bond yields curbed appetite for risky bets. The selloff was driven by worse-than-expected U.S. data showing persistent price pressures, prompting investors to price in a greater chance of Federal Reserve rate increases. Bof A strategists warned the stock market is ripe for profit-taking in early June, citing crowded equity positions and rising inflation risks, while RBC's Lori Calvasina said a 5% Treasury yield would challenge bullish U.S. stock calls by compressing price-to-earnings ratios. Bitcoin slipped below $79,000 as riskier assets were swept up in the rout, and on Wall Street, Ford Motor Co. suffered its worst day since 2024 as enthusiasm for its AI-driven energy demand thesis cooled.

Dollar and Bonds Firm on Inflation Signal

The dollar rallied toward its best weekly gain since March after U.S. economic data reinforced expectations of further Fed rate hikes, while Fidelity International's contrarian inflation bet paid off as bonds slid. Portfolio manager Mike Riddell had been skeptical of claims that global price pressures were subsiding, and the Iran conflict has only sharpened that view. Inflation-linked bonds returned to fashion as energy price surges prompted investors to revisit the trade, and bond yields climbed everywhere as oil-driven inflation picked up. Soc Gen's Albert Edwards warned double-digit inflation could return, adding to unease across fixed-income markets. Even so, Chinese stocks halted their rally and the yuan held steady following the Xi-Trump summit, which delivered what analysts called a predictable script lacking substantive breakthroughs.

Oil Rallies on Hormuz Fears

Brent crude climbed past $107 as hopes for an Iran war resolution faded after President Trump failed to secure a Chinese commitment to persuade Iran to reopen the Strait of Hormuz. Major forecasters slashed expectations for global oil consumption as the supply shock from the conflict hit demand growth harder than any period since Covid. Nigeria's Oando Energy is seeing a revenue surge from the Iran war as buyers seek safer Gulf alternatives, while India braced for more fuel price hikes after imposing its first increase in four years. U.S. natural gas futures headed for weekly gains on warmer weather and a near-normal storage report, underscoring broad energy demand strength.

Trade Summit Delivers Little

President Trump returned from Beijing with few concrete deals, leaving investors and analysts underwhelmed by the two-day summit. China's Xi Jinping pitched "constructive strategic stability" aimed at drawing lines the U.S. should not cross, while the summit gave China markets little reason to change course. Trump touted "fantastic trade deals" but offered scarce details, and Chinese stocks halted their rally despite the high-profile meeting. Elon Musk's awkward selfie with Chinese billionaire Lei Jun went viral on Chinese social media, underscoring the optics of the visit.

Strategic Energy and Defense Pivots

India and the UAE agreed to expand strategic crude and gas reserves while also signing a defense partnership framework, deepening ties as the Middle East conflict raises supply-security concerns. The moves come as India's consumers face more fuel price increases and gold imports slow to a trickle amid tighter trade rules aimed at shoring up the rupee.

Warren Buffett's Lunch Fetches $9 Million

An anonymous bidder paid $9 million for lunch with Warren Buffett and Stephen Curry, marking the highest winning bid in the Berkshire Hathaway chairman's charity auction. Buffett last participated in the annual event in 2022, and the proceeds will benefit the Glide Foundation in San Francisco.

Corporate Movers

Starbucks laid off 300 corporate employees and closed four regional offices, taking a $400 million charge as part of its turnaround