Equity Capital Markets Update, May 2026

U.S. Market Commentary

Geopolitics and Global Trade

U.S.-Iran standoff persisted in an uneasy equilibrium for most of May, with sporadic flare-ups failing to derail expectations of an eventual settlement; near month-end, both nations approached an MoU framework for a 60-day ceasefire extension and deeper negotiations, though tensions remain high with the U.S. striking Iranian radar and command-and-control sites over the last weekend and Iran targeting a U.S. air base amidst ongoing talks
WTI crude ended the month down 16.9%, back below $90/barrel, on the back of current deescalation discussions; the December WTI contract ended the month below $79/barrel

Monetary Policy, Inflation, and Employment

Markets are looking ahead to Warsh’s first meeting as Fed Chair in June, as April CPI came in at 3.8% (up from 3.3% in March and the highest print in nearly three years), complicating the easing debate
Nonfarm payrolls rose by 115,000 in April, beating the consensus forecast of 55,000 but down from 185,000 in March; Healthcare sector led gains at 37,000
U.S. labor force participation rate fell to 61.8%, the lowest level since 2021

Source: Bloomberg as of 5/29/26. FOMC Projections as of March 2026.

Public Equity Markets

U.S. equities continued with strong momentum in May, with the major indices finishing at fresh records; semiconductors and memory outperformed, and software names broadly began to recover

Equity Capital Markets

15 IPOs (~$12.1BN) and 51 Follow-Ons (~$19.4BN) priced in May
Notable transactions:
- Lincoln International — $484mm IPO — +14.1% offer-to-current
- Cerebras Systems — $6,383mm IPO — +28.1% offer-to-current
- Fervo Energy — $2,174mm IPO — +35.8% offer-to-current
- Hawkeye 360 — $478mm IPO — +27.0% offer-to-current

Source: Bloomberg, FactSet, FOMC, Federal Reserve. Market data as of 5/29/26. Issuance figures exclude SPAC IPOs and closed-end funds.