Public Markets 8 Hours

Last updated: July 1, 2026, 8:30 PM ET

Markets Overview

Global equities were poised for a mixed open as traders assessed fresh commentary from Federal Reserve Chairman Kevin Warsh, who dodged questions on rates. Asian stocks were set to decline as a selloff in U.S. chipmakers weighed on sentiment. The S&P 500 closed modestly lower following a day of mixed trading, with weakness in tech shares offsetting gains in financials and consumer discretionary sectors as investors parsed Fed comments. Meanwhile, the strongest quarterly gain since 2020 was recorded for the S&P 500, which rose nearly 15% in the three months ending June, with analysts optimistic about continued corporate earnings growth driven by artificial intelligence.

Public Market Dealmaking and IPOs

Mega takeovers are driving record dealmaking, with mergers and acquisitions volume expected to remain strong in the second half of the year according to market participants. The total value of M&A reached $2.8 trillion, fueled by companies and investors adjusting to economic shifts spurred by the rise of AI. In the IPO market, Bending Spoons SpA, the Italian tech group behind Vimeo and Evernote, surged 40% on its Nasdaq debut, raising $1.68 billion in one of Europe's largest technology IPOs this year. Separately, Uber-backed Lime saw its shares climb after raising $167 million in an IPO underwritten by Goldman Sachs and JPMorgan. However, KNDS, the Franco-German tank maker, postponed its IPO citing market conditions, halting what was expected to be one of Europe’s largest debuts.

Technology and AI

The White House is accelerating plans for AI model standards, with guidance expected as soon as next week following government intervention in the rollouts of Anthropic and OpenAI products. Concerns are mounting among economists regarding the potential fallout from the AI boom, with warnings about a possible bust issued by top economists. Separately, SpaceX reportedly showed investors a prototype AI device, while Michael Burry cited the "beginning of the end" with new AI-related short bets against companies like Tesla and Caterpillar.

Corporate and Financial News

Alibaba Group and U.S. payment processor AUS Merchant Services will pay $600 million to settle allegations of facilitating the sale of illegal drugs. In a significant logistics deal, CMA CGM, the world's third-largest container line, is acquiring FedEx Supply Chain for $1.4 billion to expand its contract-logistics business. BlackRock's head of its private credit fund is departing following months of losses and regulatory probes. Meanwhile, South Korean banks are expanding trading floors to prepare for the won's round-the-clock trading, and Robinhood Markets Inc. is rolling out perpetual futures tied to commodities and ETFs in Europe.

Energy and Commodities

Oil futures extended their decline for a third day as flows through the Strait of Hormuz surged and signs of progress emerged in indirect U.S.-Iran talks. U.S. crude grades have slumped to a discount as crude flows increase and demand for American exports fades, easing the "Iran war premium." Natural gas futures fell ahead of storage data despite hot weather boosting cooling demand, as abundant production kept a lid on gains. Exxon Mobil Corp. will change its name to Exxon Mobil Holdings Corp. after redomiciling in Texas, marking its first name change in over 25 years.

President Trump and Financial Interests

President Trump's business holdings, which garnered him over $2 billion last year, present potential conflicts of interest exceeding those of any predecessor. He reportedly made up to $1.4 billion in stock purchases in 2025, declaring over 22,000 share transactions. Crypto deals, meanwhile, generated significant windfalls for Trump and his family, even as approximately two-thirds of investors in his memecoin are currently experiencing losses. Trump accounts are slated to receive a $250 million donation from chip maker Micron, designated for a new type of investment account created by the administration. The administration has also declined to renew the North American trade agreement with Mexico and Canada, opting for annual reviews instead.

Fixed Income and Currencies

Global treasurers are fueling record sales of Kangaroo bonds, pushing issuance to a high as a flood of Asian capital caps borrowing costs. Traders are plotting a worst-case scenario for the yen, with some investors considering a slide to 200 per dollar as a medium-term risk amid currency crisis fears. U.S. Treasurys fell, sending yields higher as investors digested economic indicators and comments from Federal Reserve Chairman Kevin Warsh ahead of the payrolls report. Lenders to Tungsten Automation have signed a pact to work together on a potential debt restructuring following a steep slide in the software company's debt prices according to people familiar with the matter.

Other Markets

Cboe Global Markets Inc. is seeking regulatory approval to list options tied to corporate earnings metrics, allowing wagers on figures from companies like SpaceX and Nvidia. Gold and silver futures posted gains to start the third quarter, marking their second consecutive session of increases. The European Central Bank's Governing Council is splintered on the next rate move as inflation sinks, with some members seeing a smaller likelihood of further rate hikes due to falling energy prices.