In the first quarter of 2026, U.S. IPO activity was significantly impacted by multiple market disruptions, including a selloff in artificial intelligence (AI) stocks, a partial government shutdown, and a Supreme Court decision affecting trade tariffs. These factors contributed to a 35% drop in operating company IPOs, with 26 listings compared to the previous quarter.
The Iran conflict further exacerbated market instability, causing energy commodity prices to soar—European natural gas prices increased by around 60%, while U.S. and global oil prices rose by 40-50%. The conflict has also disrupted key commodity supplies through the Strait of Hormuz, affecting urea (up 35%) and aluminum (up 10%). As a result, U.S. headline CPI rose to 3.3% in March, leading to increased bond yields and a decline in gold prices by 10%.
Overall, the Nasdaq IPO Pulse fell to a nine-month low due to the heightened volatility. While IPO activity in Stockholm also decreased, the U.S. and European markets have seen recoveries in April, suggesting that the first quarter’s challenges may be temporary. Future updates in July will reveal if the downturn in IPO activity persists or if it was merely a blip.
