Markets Rally as IPO Momentum Builds

U.S. economy shows resilience as Europe slows

This week’s economic data painted a mixed global picture.

In the United States, recent data continued to point toward resilience despite ongoing geopolitical uncertainty and elevated energy prices.

May purchasing managers’ indices showed notable strength in manufacturing activity, which reached its highest level in nearly four years. Fiscal stimulus measures introduced last year, along with continued AI-related investment, appear to be supporting industrial activity.

The U.S. consumer also remains engaged. Labor market data, including weekly ADP employment figures and initial jobless claims, continues to point to stable hiring conditions and a relatively healthy labor market.

Outside the U.S., however, growth signals were softer.

In both the eurozone and the UK, purchasing managers’ indices fell below the 50 threshold in May, suggesting that growth may be stalling. Economies more exposed to higher energy prices and commodity supply disruptions appear increasingly vulnerable as the Middle East conflict continues.

This divergence between U.S. resilience and softer international growth will remain an important theme to monitor in the second half of 2026.

IPO activity accelerates

Another notable development this week was continued momentum in the IPO market.

SpaceX announced plans to go public on the Nasdaq, with a share sale potentially taking place as early as mid-June. Based on current valuation discussions, the company could become one of the ten largest publicly traded companies globally following the offering.

The broader IPO environment is shaping up to be one of the strongest years on record in dollar terms.

For investors, these developments raise important portfolio questions around concentration risk, taxation and hedging strategies as private market winners transition into large public market exposures.

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