Global M&A volume rose 44% year over year to a record $3 trillion in the first half of 2026, driven by AI-related megadeals and a surge in US transactions, according to Mergermarket. While the number of deals declined, large acquisitions dominated activity as companies moved to complete transactions amid favorable regulatory conditions and strong demand for AI infrastructure.

US Treasury yields rose in a global bond selloff as higher oil prices renewed inflation concerns and strengthened expectations that the Federal Reserve could raise interest rates later this year. The two-year Treasury yield approached its 2026 high, while minutes from the Fed's June meeting showed some policymakers saw a case for a rate increase despite holding rates steady.

Federal Reserve officials were divided over the path of interest rates at their June meeting, with some seeing a case for future rate hikes if inflation remains elevated and others expecting price pressures to ease. The minutes also cited tariffs, Middle East tensions and strong AI investment as risks that could keep inflation above the Fed's target.