In the United States, equity markets were volatile last week, with stocks briefly falling to their lowest level in a month as concerns over AI-related spending and inflation combined with escalating tensions in the Middle East. On the AI front, semiconductor stocks suffered the most, as investors continued to express concerns about elevated valuations within the sector. These concerns were exacerbated by SpaceX’s IPO on Friday. Meanwhile, US inflation came in at 4.2%, with higher interest rates now expected to persist throughout the remainder of 2026. US strikes on Iran targets on Thursday also increased market anxiety, although a full-scale outbreak of hostilities is not currently expected. For the week, the S&P 500 and NASDAQ both closed higher, up 0.65% and 2.34% after a strong Friday session, helped by SpaceX.
In corporate developments, OpenAI has joined Anthropic and SpaceX in filing for an Initial Public Offering (IPO), setting the stage for what could become the most significant period of public listings in a generation. While Anthropic is now considered by many to be the leading AI developer, OpenAI remains the company behind ChatGPT, the chatbot that launched the AI boom in late 2022 and helped propel companies such as NVIDIA to extraordinary valuations. Although no timeline has been provided for the listing, speculation suggests that it could take place as early as September, with a potential valuation of $1 trillion. This would mean that the US stock market could see three separate listings in 2026 involving companies valued at more than $1 trillion. However, these are unlikely to be the only significant public offerings in 2026. Databricks is also expected to list publicly, in what could become the largest enterprise software IPO in history. The company is unique in that it combines cloud data infrastructure with artificial intelligence through its Lakehouse platform, which integrates data engineering, analytics and machine learning. Databricks is currently valued at approximately $134 billion, with an IPO potentially taking place during the second half of 2026.
In technology news, NVIDIA last week agreed a multi-year partnership with South Korean chipmaker SK Hynix, under which the companies will collaborate on the development of next-generation memory technologies. SK Hynix will develop memory chips that will then be supplied directly to NVIDIA. However, there is no indication that these chips will be designed exclusively for NVIDIA; rather, they will be built to industry standards while remaining compatible with NVIDIA processors. Alongside memory chip production, the partnership will see SK Hynix utilise NVIDIA’s design technologies to accelerate complex chip development workflows. The agreement between two of the world’s largest semiconductor companies is yet another example of the growing collaboration occurring across the sector, which has become increasingly common as the AI ecosystem continues to mature and become more interconnected. Elsewhere, Apple officially entered the AI chatbot race as the company unveiled its long-awaited AI-powered version of Siri, its flagship voice assistant. The announcement was made during Apple’s Worldwide Developers Conference, with the company placing particular emphasis on privacy. The updated assistant will be capable of understanding content displayed on users’ screens and performing tasks such as creating notes from iMessages and automatically managing calendars.
In Europe, markets were mixed, moving both lower and higher during a volatile week. However, the sell-off was not as severe as in the US, largely due to the relative lack of major technology firms in the Eurozone. Markets also largely shrugged off the ECB’s interest rate hike on Thursday, as the move had already been priced in by investors. For the week, the Euro Stoxx 50 and STOXX Europe 600 closed higher, up 2.07% and 2.56% respectively.
In corporate developments, there were significant developments in Italy last week, as both Intesa Sanpaolo and Banco BPM made approaches to Monte dei Paschi di Siena (MPS), the world’s oldest bank. Banco BPM initially approached MPS with a merger proposal valued at €50 billion. However, Intesa Sanpaolo, Italy’s largest bank, submitted a €30.6 billion bid on Monday to acquire MPS. If completed, the transaction would create the second-largest banking group in Europe by market capitalisation. If the deal were to be accepted, it would dramatically alter the Italian banking landscape and create a new European banking powerhouse capable of competing with the likes of Banco Santander and UBS.
In the United Kingdom, the FTSE 100 rose higher flat last week, escaping the global technology sell-off that weighed on markets in the US and Asia. The index also benefited from gains in the financial and mining sectors, as commodity prices strengthened later in the week following an initial decline earlier in the period. For the week, the FTSE 100 closed 1.18% higher.
In corporate developments, GlaxoSmithKline (GSK) announced last week that it had agreed a deal to acquire US cancer biotechnology company Nuvalent in a transaction worth $10.6 billion. The acquisition is GSK’s largest in more than a decade and reflects the company’s confidence in the long-term growth potential of oncology treatments. Nuvalent owns two lung cancer therapies that could both be launched this year, subject to approval by the FDA. If approved, the treatments would provide additional options for patients suffering from non-small-cell lung cancer. The transaction also highlights the growing trend of mergers and acquisitions within the biotechnology sector.
