Public Markets 8 Hours

Last updated: May 21, 2026, 2:30 PM ET

Tech IPO Frenzy

SpaceX is preparing for a blockbuster IPO targeting a valuation that could reach $26.5 trillion, positioning itself as an AI play in a market that has largely abandoned dividend-paying stocks. The rocket company has spent $15 billion developing its next-generation Starship, which is set for an upgraded test flight before the listing. Meanwhile, Wall Street banks are vying for $1 billion in fees to lead what's expected to be the biggest-ever IPO, with Goldman Sachs eclipsing Morgan Stanley's Michael Grimes for influence over Elon Musk's listing. Crypto exchanges have rushed to launch derivatives linked to SpaceX, while European space stocks soared with French satellite operator Eutelsat jumping 17% and German developer OHB hitting all-time highs.

Geopolitical Market Impacts

The Iran war continues to disrupt global markets, with jet fuel costs spiking 8% and forcing airlines to reassess their hedging strategies. Mortgage rates hit 6.5%, their highest level since the war began, while bond yields surge worldwide, ramping up borrowing costs globally. Turkey's central bank sold $6 billion in foreign exchange to defend the lira, and French authorities pledged €710 million in new measures to support households and companies hit by rising energy costs. The International Monetary Fund cut France's growth forecast as uncertainty builds ahead of next year's presidential elections, while Brazil's fertilizer crunch risks farm economy due to the spike in costs driven by the Middle East conflict.

Housing Market Struggles

Home buyers are facing mounting pressure as the war-fueled bond rout drives mortgage rates higher, with one lifelong renter in Pennsylvania getting outbid nearly 30 times on her home search. Housing markets remain frozen, with home builder Hovnanian swinging to a loss of $284,000 in its second quarter compared to a $19.7 million profit a year earlier. Deere reported mixed results with higher fiscal second-quarter sales as growth in construction equipment offset weakness in agriculture, reflecting the uneven economic impact across different sectors.

Policy and Market Regulation

President Trump plans to sign an executive order granting oversight of AI models, signaling a shift from the hands-off approach the White House previously took. Governors are preparing for AI disruption, with California's Gavin Newsom set to issue an order to explore labor policy overhauls to deal with potential mass job displacement. The Trump administration will invest $2 billion in nine quantum computing companies and take equity stakes, hoping to spur "a new era of American innovation." A bipartisan bill in the Senate seeks to curb the Treasury's ability to fund foreign allies by restricting Scott Bessent's use of the $219 billion Exchange Stabilization Fund.

Retail Sector Resilience

Despite economic pressures, major retailers reported sales increases as Walmart, Target and TJ Maxx attracted shoppers squeezed by energy prices. Walmart's profit growth slowed as the retailer absorbed additional costs to hold down prices for consumers, while Advance Auto Parts logged its strongest quarterly same-store sales growth in five years. Ralph Lauren climbed in sales boosted by particularly strong growth in China, highlighting how some premium brands continue to thrive despite economic headwinds.