Public Markets 8 Hours

Last updated: May 28, 2026, 8:32 AM ET

Global Market Overview

U.S. stock futures fell 0.3% in New York as Middle East attacks fueled doubts over whether an end to the conflict is imminent, with tech-focused Nasdaq-100 contracts leading the decline. The S&P 500's retreat followed the index's crawl to record highs yesterday, while European markets weakened broadly after fresh U.S. strikes against Iran. The FTSE 100 slumped along with gilts as geopolitical tensions escalated, with investors assessing the potential impact on global supply chains and economic growth.

Corporate Earnings

Retailers posted strong results with Burlington Stores raising its annual outlook after logging higher profit and sales, while Dollar Tree reported increased earnings as consumers continued to seek low-cost goods. Best Buy benefited from strong demand in gaming, computer, and cellphone segments, reporting higher profit and rising sales. However, Chinese EV manufacturers faced headwinds as XPeng returned to a loss and Li Auto suffered declining margins amid slowing hybrid vehicle sales, contrasting with the semiconductor sector where Soitec jumped after restoring free cash flow, boosting its stock more than sevenfold this year.

M&A Activity

The casino industry saw a major deal as Tilman Fertitta agreed to acquire Caesars Entertainment for $5.7 billion, paying $31 per share and assuming approximately $11.9 billion of debt. In the hospitality sector, PPHE Hotel surged on news of a $1.24 billion takeover approach from Fattal Hotel, with the company planning to engage shareholders on the proposal. Meanwhile, drone makers Quantum Systems and Destinus are seeking advisers for potential IPOs as soon as early 2027 to capitalize on surging demand for unmanned aerial vehicles.

Commodities & Energy

Oil prices climbed after the U.S. shot down four Iranian attack drones, casting doubt on prospects for a peace deal in the Middle East. The energy rally continued as oil gained additional ground following fresh U.S. strikes on Iran after Tehran launched drones at commercial ships in the Strait of Hormuz. In European power markets, German electricity prices exhibited extreme volatility, trading near zero at noon before surging to nearly €400 a megawatt-hour in the evening as solar generation faded, reflecting the challenges of renewable energy integration.

Financial Sector

European banks capitalized on favorable conditions by selling Additional Tier 1 bonds with long call dates at a record pace, effectively fixing costs for a decade. Nomura raised its annual profit target by 50% following a year of record earnings as CEO Kentaro Okuda pushes for stable growth. Meanwhile, Deutsche Bank faced investor pushback on its plan to give a significant pay raise to Supervisory Board Chairman Alexander Wynaendts, while Société Générale's CEO acknowledged inefficiencies and vowed continued restructuring as the bank lags in some performance metrics. In Asia, HDFC Capital aims to double its fund base to approximately $9 billion over the next three years to capitalize on regional infrastructure opportunities.

International Markets

South Korea's pension fund sharply increased its allocation target for domestic equities to avoid forced sales after the recent Kospi rally pushed its holdings above predetermined thresholds. In the UK, research indicates the country could miss its housing target by 40% or more in the current parliamentary term, potentially exacerbating affordability challenges. JPMorgan strategists project a revival in retail investor participation in U.S. equity markets after their share fell to a four-year low by the end of Q1, potentially providing additional support to stock valuations.