Public Markets 8 Hours

Last updated: May 15, 2026, 5:31 PM ET

Global Markets Update: Inflation Concerns Weigh on Assets, Oil Markets Tighten

Stock Markets & IPO Activity

The S&P 500 extended its winning streak despite accelerating inflation and potential interest rate increases, driven by strong corporate earnings. Meanwhile, SpaceX is targeting June 12 for what could be the largest IPO ever, with the Elon Musk-led rocket company expected to file its paperwork publicly as soon as Wednesday. In the IPO space, Fervo Energy went public raising $1.9 billion, utilizing oil and gas drilling techniques to harness geothermal energy. However, the broader market rally faced headwinds as the global bond rout caught up with Wall Street's risk appetite, with Ford experiencing its worst day since 2024 as the AI-driven rally cooled.

Bond Market Turmoil

Government bonds saw yields climb to multi-decade highs, with the 10-year Treasury reaching nearly 4.6% — its highest level in over a year. This bond market selloff prompted G-7 finance ministers to discuss the surge in yields, which threatens to cause disruptions in the Treasury futures market as traders rapidly reposition their hedging strategies. The corporate bond market gained an edge over sovereigns as credit investors enticed by high yields focused on robust results from blue-chip businesses, shrugging off geopolitical concerns. Meanwhile, gilts fell as traders brace for potential political challenges in the UK, while Turkey's Kontrolmatik defaulted on 450 million liras in debt, marking a rare corporate default in the country.

Commodity & Energy Markets

Oil markets tightened amid geopolitical tensions as hopes for an end to the Iran war faded after President Trump failed to secure commitments from China regarding the Strait of Hormuz. Oil futures settled higher on inventory concerns as prolonged closure of the strategic waterway raised global supply fears. Nigerian oil producer Oando witnessed a revenue surge due to the Iran war, which "shattered" the Gulf's reputation as a safe operating area. In the energy sector, Argentina's YPF sought incentives for a $25 billion oil project to accelerate production, while Shell Brazil's head departed after securing approval for the Orca deepwater project. Commodity markets also saw hedge funds boost bullish copper wagers to a five-month high as prices continued to climb.

Currency & Foreign Exchange

The euro could climb to five-year highs as a drop in hedging costs is expected to drive flows of more than $200 billion, according to Morgan Stanley. Meanwhile, the dollar could drift higher as it retains its high-yielding status, though RBC Capital Markets noted it would likely stay within this year's established trading ranges.

Crypto & Digital Assets

Bitcoin dipped below $79,000 as a broader selloff in riskier assets swept up cryptocurrencies, with inflation fears and high oil prices rattling investors. Meanwhile, Kraken cut 150 workers after deploying AI, with the cryptocurrency exchange potentially delaying its IPO to 2027 due to declining digital-asset prices.

Investment Activity & Corporate Moves

Berkshire Hathaway boosted its holding in Alphabet while exiting its bet on Amazon during CEO Greg Abel's first quarter, while also adding positions in REF