Weekly market wrap up

Global bond markets had an uncomfortable week, with investors selling government bonds and pushing yields higher across the US, UK, Europe and Japan. The trigger was not exactly subtle. Higher oil prices, tied to the conflict in Iran, revived concerns that inflation could prove stickier and central banks may need to keep policy tighter for longer. Long-dated bonds bore the brunt of the move, with the US 30-year Treasury yield climbing back above 5% and Japanese long-term yields reaching multi-decade highs. Global bond markets matter because they shape local borrowing costs, broader financial conditions, and the cost of government and corporate funding. It is a reminder that inflation shocks do not need to originate at home to be felt here. 

Meta, the company most people still instinctively call Facebook, this week announced another major restructuring, cutting around 8,000 jobs while accelerating investment into artificial intelligence. The move highlights how aggressively Silicon Valley is repositioning itself around the technology. Mark Zuckerberg reportedly told staff that “success isn’t a given”, reinforcing the pressure on major technology firms to keep evolving as competition intensifies. The shift reflects a broader trend across the sector, with companies directing billions toward data centres, computing power, and automation, while trimming costs elsewhere to help fund the transition. Investors appeared relatively comfortable with the move, suggesting markets remain more focused on long-term strategic positioning than short-term workforce reductions. 

Australia’s April employment figures suggested the labour market may no longer be quite as bulletproof as it appeared earlier in the year. The unemployment rate rose to 4.5% from 4.3%, the highest level in around four and a half years, while total employment fell by 18,600 - the first monthly decline in 2026. One month does not make a downturn, but the direction matters because labour markets tend to turn slowly. The RBA will likely see the data as further evidence that tighter financial conditions are beginning to bite, even if inflation risks continue to complicate the policy backdrop. For New Zealand, a softer Australian labour market can influence migration flows, wage comparisons, and trade volumes. 

Few companies capture modern market enthusiasm quite like SpaceX, which this week officially confirmed plans for a blockbuster IPO expected to value the business at close to US$1.75 trillion. Investors were given their clearest look yet at the company’s financials, with annual revenue reportedly reaching roughly US$18.7 billion and Starlink emerging as the standout commercial engine behind the business. What began as an ambitious attempt to lower the cost of launching rockets has steadily evolved into a sprawling telecommunications and infrastructure company with growing influence across defence, AI and global connectivity. Profitability remains elusive as spending continues at full throttle, although markets appear increasingly focused on scale, strategic positioning and infrastructure dominance rather than traditional valuation metrics. The story reflects a broader shift in global markets toward businesses that control information, connectivity and critical infrastructure.