Public Markets 8 Hours

Last updated: June 2, 2026, 5:30 PM ET

Equities Hit Records as Bullish Sentiment Builds

U.S. stocks closed at records for a fifth consecutive session, the longest such streak since February 2017, with all three major indexes notching simultaneous highs. The rally reflects what Goldman Sachs CEO David Solomon described as "more greed than fear" on Wall Street, a mood that pushed the S&P 500 to record closes on half of all trading days last month. North of the border, Canada's benchmark index surpassed 35,000 for the first time, driven by a broadening rally in energy and financial stocks. The enthusiasm has extended to currency markets, where traders have ramped up wagers on a stronger yuan to their most bullish level in 15 years, betting that increased global usage and attractive valuations will cushion China's currency through near-term headwinds.

AI Megafunding Reshapes Capital Markets

Alphabet's surprise $80 billion equity sale is on track to become the largest equity capital markets transaction in history, underscoring how the ability to tap public markets has regained importance in the AI spending race. The flood of supply comes as the tech sector is collectively offering roughly $675 billion in equity to hungry investors. The capital is flowing aggressively into infrastructure: a data center tied to Core Weave raised $900 million in junk bonds to fund AI buildout, joining a wave of high-yield issuers tapping debt markets. Within tech, the divergence is stark — semiconductor stocks rallied while software shares fell, producing the widest gap between the two sub-sectors on record. Palo Alto Networks bucked the software slump, with CEO Nikesh Arora dismissing fears of a "Saa S-Pocalypse" after the cybersecurity firm reported rising revenue as customers fortify defenses.

Hormuz Blockade Tightens Oil Markets

Crude futures extended gains as the prolonged U.S.-Iran impasse over reopening the Strait of Hormuz tightens physical supplies, with an MSC vessel struck by two projectiles in an Iraqi port underscoring the persistent threat to shipping. Vitol's top Middle East executive warned that Western governments are underestimating the global supply crunch, while Goldman Sachs flagged a potential August diesel crisis with U.S. inventories at their lowest since 2003 — potentially just 20 days of supply if draws continue. The UAE is exploring a new pipeline to bypass the strait, potentially carrying refined fuels to its east coast, and a shipping tycoon said he would prefer paying a $200,000 toll to enduring the current disruption. U.S. natural gas futures dipped on lower flows to LNG export terminals for a third straight day, concentrated at Sabine Pass. Gold edged 0.3% higher as inflation concerns persisted despite the risk-on tone in equities.

Private Credit Shows Cracks

Cliffwater LLC's flagship $31 billion private credit fund faced 17% redemption requests from retail investors last quarter, forcing the firm to cap withdrawals at 5% — the latest sign of stress in the $1.8 trillion private credit market. The exodus comes even as Blue Owl Capital's technology-focused private credit fund moved to sell $300 million in investment-grade bonds, suggesting a bifurcation between institutional and retail-facing vehicles in the rapidly growing asset class.

IPO Pipeline and M&A

SpaceX is targeting a roughly $1.75 trillion valuation in its IPO expected next week, with banks in line for hundreds of millions in fees and employees pushing for VIP share terms that could shape how future listings from OpenAI and Anthropic handle insider cash-outs. Anthropic itself has filed to go public, adding to a packed pipeline. In European banking, UniCredit cleared the 30% ownership threshold in its roughly $28 billion Commerzbank takeover bid after 7.6% of shares were tendered. Triton Partners is nearing a €3 billion deal to acquire Carlyle's Flender, while Genco's board unanimously rejected Diana Shipping's latest buyout offer as below net asset value. Rheinmetall secured €5.7 billion in Romanian defense contracts, its largest international order, as NATO allies bulk up Eastern flank capabilities.

Retail Earnings and Crypto Winter

Victoria's Secret swung to a $47.7 million first-quarter profit on strong bra sales and raised its full-year outlook, sending shares soaring. Ulta Beauty reported broad-based growth across all channels and major categories, with CEO Kecia Steelman saying the strategy is working. Dollar General, meanwhile, is winning over stressed shoppers who are cutting back on household spending as gas-pump prices climb. Bitcoin has plunged 36% over the past year REF