Public Markets 8 Hours

Last updated: June 3, 2026, 2:31 PM ET

Equity Markets & AI Boom

European equities rallied on AI enthusiasm as ASML Holding NV became the continent's most valuable company ever, climbing 60% year-to-date on surging demand for AI-related stocks. Meanwhile, U.S. stocks stumbled 1.2% in the S&P 500 as escalating Middle East tensions threatened fragile peace prospects between the U.S. and Iran. Despite geopolitical concerns, JPMorgan analysts predicted U.S. stocks could reach new highs driven by an earnings "supercycle," with tech stocks potentially outperforming as AI adoption accelerates. Traditional value stocks showed signs of resurgence as investors rotated out of growth sectors, with defensive sectors gaining momentum amid heightened market volatility.

IPO Activity & Capital Raises

The artificial intelligence race intensified on Wall Street as Anthropic PBC selected Morgan Stanley and Goldman Sachs to lead its upcoming IPO, positioning itself against rival OpenAI in the race to go public. Applied Aerospace & Defense made a strong debut with its shares rising 3.75% after raising $650 million in its U.S. IPO priced near the top of its range. In a record-breaking move, Google parent Alphabet upsized its equity offering to $84.75 billion from $80 billion announced just two days earlier, marking the tech giant's first stock offering in more than two decades to fund ambitious AI spending plans. AI research startup Lila Sciences secured funding talks at an $8.5 billion valuation, with the company in discussions to raise approximately $2 billion as private valuations for AI companies continue to climb.

Fixed Income & Credit Markets

Treasury yields rose 8 basis points after ADP jobs data exceeded expectations, with bond markets also reacting to escalating Middle East tensions. Federal Reserve Chairman Kevin Warsh's first policy meeting emerged as a key risk for foreign-exchange markets, potentially jolting currency markets and disrupting carry trade strategies, according to Morgan Stanley. In the credit markets, Barclays' Head of Credit Research warned of "war" in software refinancing as tremors from the debt market continued. JPMorgan prepared to sell $1.85 billion in debt financing to support Belden's acquisition of Ruckus Network, while credit giants cautioned that leveraged deals made years ago face potential shakeouts as investor redemptions increase. Shares of alternative asset managers fell sharply after Cliffwater LLC's flagship private credit fund reported even larger redemption requests than in the first quarter.

Commodities & Energy

U.S. crude oil inventories extended their decline for a sixth consecutive week, falling by 8 million barrels as exports rose and refineries operated near full capacity. Russia's payouts to refiners reached near-record levels in May, denting the nation's oil and gas revenues despite the war in Iran boosting crude prices. As the Iran conflict continues to disrupt oil flows through the Strait of Hormuz, Vitol warned that gasoline could become the next petroleum product facing supply crunches. Kuwait plans to expand its global oil storage capacity