Public Markets 8 Hours

Last updated: June 26, 2026, 8:30 AM ET

Public Markets Overview

Global equity markets experienced a broad decline, with technology stocks leading the retreat as concerns over artificial intelligence valuations resurfaced. US stock futures resumed declines as investors grew skeptical about the sustainability of high AI valuations, a sentiment echoed across Asian markets where stocks tumbled amid AI uncertainty. This tech selloff triggered a significant downturn in emerging market equities, marking their worst performance in three weeks. The sentiment was further soured by reports that OpenAI was considering delaying its IPO, adding to the prevailing unease around the AI boom.

Technology Sector Turmoil

The artificial intelligence rally showed signs of faltering, with investors pulling money from US equities for the first time in three months, driven by record outflows from tech funds. This shift signaled a cooling of the AI trade, which had previously propelled the market. South Korean stocks tumbled 8%, triggering a second trading halt this week as jitters over AI valuations rattled the region's best-performing market. Similar anxieties over high AI valuations also hit Asian technology shares following Apple's price increases, sparking concerns that rising component costs could curb demand and slow the memory chip rally. In China, two prominent hedge fund managers are warning that the AI boom has become an "unsustainable bubble" according to Chinese hedge funds.

Corporate Dealmaking and Restructuring

In corporate news, Boeing Co. secured a $3.62 billion order from China Southern Airlines, a notable win for the US manufacturer. Unilever is reportedly exploring a bid for supplement maker Thorne, a deal valued at $4 billion, as it seeks to bolster its health and wellness portfolio Unilever explores bid. Volkswagen is reportedly planning a significant overhaul that could result in up to 100,000 job cuts as part of its cost-cutting efforts Volkswagen deepens cost-cutting, a move that could rank among the largest corporate layoffs ever Volkswagen to axe jobs. Separately, the German financial regulator has launched a probe into Zalando's accounts, causing the fashion retailer's shares to plunge and wipe out most of their year-to-date gains Zalando shares slump.

Energy Markets and Geopolitics

Oil futures showed volatility, with reports indicating that Kazakhstan's Karachaganak field cut output after drone attacks impacted a Russian processing plant. Meanwhile, Saudi Arabia has restarted crude loadings at a major Gulf terminal after a nearly four-month halt Saudi Arabia restarts crude loadings. The Strait of Hormuz remains a focal point, with Iran asserting claims to authority over the waterway following an attack on a cargo ship Iran presses claim. Despite the incident, traffic continued to flow through Hormuz, though some shipowners are reviewing their operations. European natural gas prices inched higher as traders monitored the residual risk from the Hormuz incident European natural gas edges higher.

Economic Indicators and Policy

Egypt's recent state-asset sales have satisfied International Monetary Fund targets, paving the way for $1.6 billion in funding Egypt asset sales ease path. Nigeria has accessed the first tranche of a $5 billion swap with a UAE bank, a transaction that has faced scrutiny for its opacity Nigeria draws first tranche. In Europe, traders are scaling back bets on European Central Bank rate hikes, with sliding oil prices reducing inflation risks Traders pare ECB rate bets. Consumers in the euro-area also reported a sharp fall in short-term price expectations for the next year ECB says consumers' expectations fall. In the UK, the government plans to subsidize bank loans for green home improvements by backing up to 20% of loan costs UK government to subsidise loans.

Market Movers and Other Developments

Payment processor Wise saw its shares rise after reporting a market-beating profit and announcing a $500 million buyback program Wise shares top index risers. Lebanon's defaulted bonds experienced a fading rally as investors confront potential restructuring delays and lower recovery rates Lebanon's bond rally fades. In a bid to boost betting volumes, prediction market Kalshi is partnering with the World Cup Kalshi to become partner. Meanwhile, heatwaves continue to impact Europe, with Paris suspending sports events and public drinking due to record temperatures, while some politicians are focused on air-conditioning rather than broader climate action Politicians talk air-conditioning.