Public Markets 8 Hours

Last updated: May 22, 2026, 11:33 AM ET

Equities & AI Rally

U.S. stocks extended their winning streak as the S&P 500 approached its longest run of weekly gains since 2023, with futures rising 0.2% before the open and the index on track for its strongest earnings growth since 2021. The rally has been driven almost entirely by tech, with copper trading like a high-flying AI stock as investors bet that surging power demand for artificial intelligence will underpin industrial metal prices. SpaceX's anticipated U.S. debut is fueling comparisons to Tesla's effect on EV stocks, while Bank of America strategist Michael Hartnett warned that mega-IPOs from SpaceX and OpenAI could push tech weighting in benchmarks beyond bubble-era concentration levels. Two European firms planning share sales, OHB and KNDS, are weighing delays to avoid the SpaceX market melee. Meanwhile, European industrials like KNDS are also in play domestically, with the German government confirming it wants a 40% stake in the tankmaker before its planned summer IPO.

Deals & M&A

Takeover activity remained brisk across sectors. Apollo Group launched a £1.5 billion bid for Bodycote, the FTSE 250 heat-treatment specialist, marking the latest U.S. push to acquire a listed British company. In beauty, Charlotte Tilbury derailed Estée Lauder's €3.4 billion European deal with Puig, forcing the Spanish acquirer to terminate talks and sending Puig shares down more than 14% in European trading while Estée Lauder rose over 10% in premarket. A CVC-led consortium launched a €10.9 billion offer for Recordati, tightening the buyout group's control of the century-old Italian drugmaker. Game Stop is asking shareholders to approve a massive increase in its authorized share count as it pursues an acquisition of eBay, while Itausa, Singapore's GIC, and Equipav are forming a group to bid for Brazilian water utility Copasa.

Energy & Commodities

Oil prices climbed toward $105 a barrel on uncertainty over U.S.-Iran tensions and disputes around reopening the Strait of Hormuz. European natural gas headed for a weekly gain of nearly 2% as supply tightness persisted, trading below €50 per megawatt-hour. Commodity traders face mounting legal risk after Mercuria Energy won an October trial date in a multibillion-dollar dispute over alleged benchmark oil tanker rate distortions. Total Energies is exploring a 50% sale of European renewables assets to find partners for its green investments, while Dangote Group and Ethiopian Investment Holdings proposed oil and gas pipelines through Djibouti to its port. European governments are also eyeing energy company profits from Iran trades as a tax target.

Fixed Income & Currencies

Canada's producer prices rose 2% in April, marking a fourth consecutive monthly increase, reinforcing expectations of a Bank of Canada rate cut. Both Deutsche Bank and JPMorgan see the Canadian dollar weakening further into 2026 as inflation cools. In the UK, a gilt relief rally sent yields to their biggest weekly drop since 2024 after Chancellor Rachel Reeves pledged adherence to fiscal rules. The Sri Lankan rupee surged to become Asia's best-performing currency, snapping a nine-day losing streak. China's securities regulator launched an unprecedented crackdown on illegal cross-border trading, penalizing brokerages including Futu and Tiger Brokers for operating without licenses.

Consumer & Retail

Inflation-weary shoppers kept driving to BJ's Wholesale Club, lifting first-quarter revenue, while 1-800-Flowers is investing in brand building as online floral competition intensifies. Gas prices near $4.50 a gallon are prompting consumers to cut discretionary spending, with more travelers considering EV or hybrid rentals for Memorial Day weekend. On the housing front, preapproved building plans are trimming months off the permitting process, a reform that housing experts say reduces costs that would otherwise fall on buyers. Retail demand for high-end jewelry remains strong enough to offset weak Middle East sales for Richemont.