Public Markets 8 Hours

Last updated: June 26, 2026, 11:30 AM ET

Public Markets Briefing: AI, Energy, and Geopolitics Shape Trading

Technology & AI Sector

The artificial intelligence investment boom shows signs of cooling, with US stocks posting their first outflow since March as investors pulled money from equities, particularly tech funds. This marks a significant shift from earlier in the year, signaling that the AI trade is no longer a unified market driver. US tech stock futures were poised to drop, tracking declines in Asian markets as skepticism over high AI valuations persisted. This sentiment was further soured by a report that OpenAI is weighing an IPO for 2027, a timeline that could see the AI giant go public after competitor Anthropic’s expected debut. Chipmakers, a bellwether for the AI rally, continue to experience volatility, with memory chip prices facing long-term innovation threats and Intel’s chip business showing nascent signs of recovery after years of struggle. Advanced chip packaging, a niche technology now critical for AI, has increased US reliance on Taiwan, highlighting a choke point in the supply chain.

Energy Markets

Natural gas futures extended gains for a second day amid forecasts of hot weather across the US, with the July contract expiring on rising temperatures. Meanwhile, oil prices have returned to pre-war levels after four months, reflecting a complex interplay of Middle East tensions and global supply dynamics. Saudi Arabia is ramping up crude exports, restarting loadings at major Gulf terminals after a nearly four-month halt due to regional conflict, while also increasing shipments from Red Sea outlets to bypass the Strait of Hormuz. Despite predictions of $200 a barrel, oil prices have not reached those highs, with the Strait of Hormuz largely reopened. In Europe, the energy landscape is shifting, with Germany urging the EU to suspend methane rules following US pressure, warning of risks to gas supplies.

Global Economic & Corporate News

In corporate news, Boeing secured a $3.62 billion jet deal with China Southern Airlines, a significant win amid a slowdown in orders from Asia's largest aviation market. German auto parts maker Robert Bosch Gmb H’s CEO is unexpectedly stepping down after leading efforts to cut jobs and boost competitiveness. Volkswagen is deepening its cost-cutting overhaul, with reports suggesting up to 100,000 job cuts as part of a major restructuring. Bayer received a boost from a Supreme Court ruling on Roundup, granting the company more leverage in settling outstanding cases. Investment trust rules in the UK are being tightened by regulators to curb activist investors' control over closed-end companies. In consumer sentiment, US sentiment rose in June, aided by lower gasoline prices, though it remains near record lows.

International Markets & Deals

China Three Gorges Corp. is reportedly in talks to acquire a German wind portfolio from NEAG Norddeutsche Energie AG, signaling continued cross-border investment in renewables. Denmark's Export and Investment Fund has committed €200 million to the €5 billion Scaleup Europe Fund, aiming to support European tech scale-ups. In the cryptocurrency space, a blank-check company associated with Cantor Fitzgerald is adjusting terms for a crypto deal as Bitcoin faces a prolonged downturn. European Union plans for a 15% tax on aluminum scrap exports aim to protect domestic producers, a move that could impact trade flows to the US and Asia. Hungary's Prime Minister indicated the country could meet euro entry criteria by 2030, presenting a clear timetable for euro adoption.

Geopolitical & Regulatory Developments

Ukrainian attacks have spurred a state of emergency declaration in Crimea, intensifying pressure on Russia. Iran continues to assert its authority over the Strait of Hormuz, firing on a cargo ship and issuing statements on its control of the waterway. The US has imposed sanctions on a Rwanda gold refinery, citing accusations of smuggling from the Democratic Republic of Congo. In financial regulation, Germany's financial regulator is probing Zalando over a €1.1 billion deal disclosure, causing the fashion retailer's shares to slump. The European Commission has launched an antitrust probe into French drugmaker Sanofi over its campaign against a rival flu vaccine.

Other Notable Developments

The US merchandise-trade deficit widened in May to its largest in over a year, as exports fell and imports rose. SpaceX's blockbuster bond sale is rapidly weakening in the secondary market, with traders noting a sharp widening of spreads. In the UK, inheritance tax changes on pensions are driving demand for annuities, as increased rates make regular income streams more attractive. Paris is seeking to mitigate the impact of a severe heatwave by suspending sports events and restricting public drinking, reflecting broader concerns about extreme weather events in Europe.