Public Markets 8 Hours

Last updated: May 21, 2026, 11:30 AM ET

Market Performance

US stock futures fell 0.3% in early trading as geopolitical tensions in the Middle East continued to unsettle investors, with Nvidia's recent earnings failing to provide the expected boost to markets. The broader rally lost steam as oil prices nudged higher and traders awaited concrete signals on progress toward a Middle East peace deal. Microsoft slid significantly to become the market's biggest drag, contributing to the S&P 500's fitful performance as it aims for a fourth-straight year of double-digit percentage gains, a feat not achieved since the 1990s.

IPO Pipeline

SpaceX's upcoming IPO has ignited a race among tech giants, with OpenAI and Anthropic also rushing to test investor appetite in the stock markets. The mega-listing has Wall Street bankers clamoring for positions in what is expected to be the biggest-ever initial public offering, with Goldman Sachs reportedly securing bragging rights for the prestigious role. Meanwhile, Blockchain.com filed confidentially with the SEC for its own IPO, joining the spate of digital asset companies seeking public listings.

Economic Impact

The Iran war continues to weigh on global growth with inflation pressures intensifying during the third month of the energy crunch. The euro area will slow markedly while suffering the fastest inflation since 2023 as it succumbs to energy-cost surges, according to the European Commission. In the UK, business activity fell for the first time in more than a year in May, reflecting domestic political uncertainty adding to fallout from the Middle East conflict. France's economic resilience to war fallout is wilting, jeopardizing plans to rein in the budget deficit as the country gears up for pivotal elections.

Retail Sector

Retailers like Walmart, Target and TJ Maxx reported sales increases as higher fuel costs drove more bargain hunters to their stores. Walmart specifically saw sales rise in grocery, general merchandise and online categories in its most recent quarter, though its profit growth slowed due to Iran war-related fuel cost increases that the retailer absorbed to hold down prices for consumers. The mixed performance suggests shoppers remain squeezed by energy prices, focusing on deals and cutting back in some categories.

AI Regulation & Market Impact

Trump plans to sign an executive order granting oversight of AI models, signaling a shift from the administration's previous hands-off approach. Meanwhile, Gov. Gavin Newsom will issue an executive order to explore labor policy overhauls to deal with potential mass job displacement from artificial intelligence. In New York, a report warns thousands of NYC jobs could be lost to the AI boom, with the comptroller stating "we've never seen anything like this" as the city's economy faces transformation. The regulatory focus comes as Trump approved an Nvidia chip for sale in China, though Beijing reportedly hasn't purchased any of the powerful H200 units despite their potential to boost AI ambitions.