Public Markets 8 Hours

Last updated: June 24, 2026, 5:30 AM ET

Public Markets

AI & Technology Stocks Face Volatility Amid Valuation Jitters

Global artificial intelligence stocks experienced a significant selloff, though U.S. tech futures edged higher as markets steadied after a two-day slide. The Nasdaq 100 saw its market capitalization shed nearly $1.3 trillion due to concerns over AI valuations, with traders bracing for further volatility. This turbulence has also heavily impacted Asian markets, where chip-dominated stock exchanges swung wildly, highlighting the global equity market's dependence on AI enthusiasm. South Korean chipmakers like Samsung and SK Hynix saw record volatility in choppy trading, with leveraged ETFs likely selling an estimated $6 billion of shares to maintain ratios. Investors are now closely watching Micron Technology's earnings report, which carries new gravity given the market's uncertainty about the sustainability of the AI boom. Meanwhile, new hedge funds are leveraging AI bots to compete with industry giants, signaling a shift in how investment strategies are being developed.

Defense Sector Sees Mixed Fortunes Amid Global Tensions

Shares of German defense contractor Rheinmetall AG tumbled as much as 16% following reports that Germany is shelving a major warships contract, contributing to a more than one-third decline in its value year-to-date. In contrast, tankmaker KNDS has initiated the process for an initial public offering in Frankfurt and Paris, seeking to capitalize on a regional rearmament drive and testing investor appetite for defense stocks. Separately, U.S. defense groups are set to meet with President Trump as the administration seeks to rebuild conventional weapons stockpiles amidst struggles in missile production. The conflict in the Persian Gulf continues to disrupt maritime trade, with Allianz estimating that around $125 billion of vessels and cargo remain stranded, while a supertanker was booked at nearly nine times benchmark freight rates, reflecting heightened geopolitical risk.

Energy Markets Navigate Shifting Supply and Demand Dynamics

Oil futures continued their decline in early Asian trade, with falling prices easing pressure on the European Central Bank and traders backing away from bets on further interest rate hikes. China's climate envoy suggested that oil and gas shortages triggered by the US war against Iran should prompt nations to accelerate their energy transitions. In Asia, refiners have slowed their purchases of Middle Eastern crude after a recent buying spree, with oil majors stepping in to absorb surplus barrels. China's independent oil refiners have slashed operating rates to a nine-year low, underscoring the lingering impact of geopolitical tensions on crude imports. Qatar plans to resume normal liquefied natural gas output within weeks from undamaged facilities, although Prime Minister Sheikh Mohammed stressed the necessity of a US-Iran hotline to reopen the Strait of Hormuz. U.S. diesel prices fell below $5 a gallon for the first time since mid-March, offering some relief for inflationary pressures.

European Utilities and Real Estate Face Scrutiny

The UK's failing utility Thames Water faces potential nationalization, a decision that could be simpler for the next Prime Minister than other challenges, while BT's pension fund reportedly lost £300 million on its Thames Water stake. In the real estate sector, Prologis, the world's largest owner of industrial property, was rebuffed in its $16.6 billion takeover approach for UK rival Segro, with Prologis urging Segro shareholders to push for engagement. Meanwhile, SoftBank Group Corp. is reportedly seeking a stake in Japan's largest power utility to secure electricity for its AI expansion plans, a move that would help power the growing AI boom.

Global Economic and Financial Developments

The euro sank to a one-year low against the U.S. dollar as slowing economic growth and declining oil prices reduce the likelihood of further interest rate hikes by the European Central Bank. The Bank of Japan Governor Kazuo Ueda reiterated the risk of inflation exceeding its 2% target, stating that the central bank will conduct additional interest-rate hikes as appropriate. Venezuela is set to reveal a $240 billion debt pile, making it the world's largest debt restructuring as Caracas seeks re-entry into global markets. In India, billionaire Gautam Adani announced his conglomerate's plan for a new 10-gigawatt nuclear power initiative aimed at improving the nation's energy security. Elsewhere, hedge funds are reportedly set to win another exemption from European ESG rules, meaning they would be excluded from a requirement to categorize their products.

Automotive and Aviation Sectors Grapple with New Technologies and Safety Concerns

Contemporary Amperex Technology Co. Ltd. (CATL) expects 10,000 to 20,000 electric vehicles to be equipped with its sodium-ion batteries this year, signaling a growing adoption of alternative battery technologies. European automakers are considering alliances with Chinese firms to help offload costs, a move seen as potentially the best option among challenging alternatives. In aviation, the European Union Aviation Safety Agency has ordered urgent inspections on some Airbus SE A380 jets after cracks were found in a wing component. Separately, Slate Auto is attempting to prove that affordable electric vehicles can be profitable with its new truck featuring hand-crank windows and no radio, priced in the mid-$20,000s.