The Labor Department has proposed a rule that would allow retirement plans to include alternative assets such as private equity and cryptocurrencies, aiming to expand investment options and enhance diversification. The proposal would also provide guidance and a potential safe harbor for plan fiduciaries evaluating these investments. The proposed rule is expected to be published in the Federal Register on Tuesday, with a public comment period closing June 1, after which the department may revise the proposal before issuing a final rule.

Geopolitical shifts, valuation gaps, enterprise AI, and macro divergence create a complex yet promising opportunity for 2026 investors.

US Treasurys rebounded as investors shifted from expecting Federal Reserve rate hikes to pricing in potential cuts amid concerns the Iran war will slow economic growth. The move followed comments from Fed Chair Jerome Powell signaling limited ability to counter supply-driven inflation, pushing yields lower across maturities.

Nasdaq will allow large-cap IPOs to join the Nasdaq 100 within 15 days of trading, significantly shortening the current timeline to better reflect market shifts. The rule change, effective May 1, is expected to accelerate inclusion of companies like SpaceX, though it has raised concerns about volatility and forced buying by index funds.

Wall Street faces its worst quarter in almost four years as a historic surge in energy prices, driven by the war in the Middle East, raises fears of a global recession. The Nasdaq Composite and the Dow Jones Industrial Average have both fallen into correction territory, with the S&P 500 erasing gains from the past seven months. The conflict has disrupted oil supplies, causing a 55% increase in oil prices and diminishing expectations for Federal Reserve rate cuts.

The Securities and Exchange Commission has approved an amendment to the National Market System Plan for the Consolidated Audit Trail to reduce costs while maintaining regulatory functions. The amendment includes measures such as deleting data older than three years and easing processing requirements, and the SEC estimates the changes will save $50 million to $70 million annually compared with the 2025 CAT budget.

A Securities and Exchange Commission proposal to shift corporate reporting to a semiannual basis has advanced to the White House for review, signaling progress toward potential rulemaking. The plan, backed by the Trump administration, aims to reduce reporting burdens, though critics warn it could limit transparency for investors.

Federal Reserve Chair Jerome Powell said the central bank can look past the Iran war's energy shock for now but may act if inflation expectations begin to rise. He emphasized that while supply shocks are typically temporary, persistent price pressures could force the Fed to respond despite risks to economic growth.