Public Markets 8 Hours

Last updated: June 26, 2026, 5:30 AM ET

Public Markets Briefing

Global Equities Under Pressure as Tech Selloff Deepens

U.S. stock futures resumed declines as a global tech selloff gained traction, with investors growing skeptical about high artificial-intelligence valuations. This marks the first outflow from U.S. equities in three months, driven by record withdrawals from tech funds, signaling a potential cooling of the AI trade as tech shares falter. Nasdaq futures continued to slide as the tech selloff intensified, further dimmed by reports that OpenAI is considering delaying its IPO. Asian bourses tumbled sharply, mirroring declines in U.S. tech futures and raising questions about whether the AI spending boom has peaked or is just beginning. South Korean stocks suffered their second trading halt this week, plunging over 8% as jitters over AI-driven valuations rattled the market. Emerging-market stocks slumped the most in three weeks, dragged down by the broad tech downturn that also triggered a 20-minute trading halt in South Korea.

AI Stock Valuations and Chip Market Dynamics

Investor sentiment surrounding the AI boom has soured, with tech stock futures falling as a global selloff gathered pace. Concerns over the sustainability of AI valuations are palpable, evidenced by a sharp decline in South Korean equities, which experienced their second trading suspension of the week due to chipmaker plunges. Apple's decision to raise product prices has exacerbated the tech selloff in Asia, stoking fears that rising component costs will curb demand for devices and slow the memory chip rally. The critical role of advanced chip packaging in boosting AI computing power has also heightened U.S. reliance on Taiwan as a niche technology becomes central. Meanwhile, Intel's chip business shows signs of life after years of struggle, though a full turnaround remains distant. China's efforts to commercialize frontier AI research are intensifying, with DeepSeek planning a hiring spree in an escalating talent war.

Energy Markets Navigate Geopolitical Risks and Shifting Demand

Crude prices are still elevated since the start of the conflict with Iran, though popular predictions of $200-a-barrel Brent crude have not materialized as the Strait of Hormuz remains largely open. Despite an attack on a container ship, traffic through the Strait of Hormuz continues to flow, though some shipowners are reviewing exit plans. European natural gas prices inched higher as traders monitored renewed fears about safe passage through the critical waterway. Kazakhstan's Karachaganak oil and gas field cut crude production by over a quarter following a drone attack on a Russian processing plant. China's crude oil imports are set to fall further in June, extending a subdued appetite since the Iran war began as imports decline further. Aluminum is heading for its fourth weekly drop, pressured by returning Middle East supply and a stronger U.S. dollar as supply returns.

European Economic Indicators and Corporate Developments

Euro-area consumers' short-term inflation expectations fell sharply in May, even before the resolution of Middle East hostilities. In corporate news, shares of German online fashion retailer Zalando SE plunged after the country's financial regulator opened a probe into its 2025 report for suspected accounting violations. This probe wiped out most of the stock's year-to-date gains. France's Finance Minister Roland Lescure reaffirmed his commitment to a 5% deficit target, despite criticism from the country's fiscal watchdog. The world's biggest crypto exchange, Binance, will cease providing services to EU clients after failing to obtain a license as MiCA rules come into force.

Asian Markets and Currency Movements

The Hong Kong dollar fell to a 10-month low against the U.S. dollar, as a stronger greenback and anticipated Federal Reserve rate hikes pressured Asian currencies. T. Rowe Price is betting on a pullback in the yuan, arguing it appears "expensive" against a basket of currencies from China's major trading partners as the yuan faces headwinds. China is allowing for growth in coal consumption in its new five-year energy plan, prioritizing energy market stability over climate concerns as coal use is permitted.

Other Notable Market Developments

The Indonesian government plans to place an estimated $22 billion of its standby funds in state-owned lenders to continue fueling economic growth as the government boosts bank funds. Navis Capital Partners is exploring the sale of its majority stake in the nuts and snacks company Dan-D Foods Ltd. as a stake is explored. Elroy Air Inc., a cargo drone startup, is reportedly in advanced talks to go public through a merger with a blank-check vehicle, aiming for an enterprise value of $800 million as a SPAC deal nears.