Market Update
Investors Overlook Brewing Inflationary Forces and Pour Capital In Ai Trade
Barry Adams
14 May, 2026
New York City
Stocks in New York traded higher, powered by another upswing in the semiconductor stocks.
The S&P 500 index increased 0.2%, and the tech-heavy Nasdaq Composite edged up 0.1%.
The semiconductor- and AI-related stocks continued to dominate market sentiment as investors piled fresh capital into the narrow segment of the market.
Intel, Nvidia, AMD, Corning, Broadcom, Micron Technology, Wolfspeed, and Qualcomm extended their recent gains amid continued enthusiasm about the demand from AI-driven datacenters.
Despite the market rally over the last seven weeks, hotter-than-expected producer price inflation kept market enthusiasm in check.
The producer price index soared in April, driven by a surge in wholesale prices of energy products, food, and transportation and warehousing services.
The measure of wholesale prices shot up 6.0% in April, the fastest annual increase since December 2022, when prices rose 6.4%.
The self-inflicted energy price shock has reignited inflationary forces in the U.S., as the supply disruptions in the Strait of Hormuz ripple through energy markets around the world.
Retail and Food Services Sales Jumped In April
The preliminary estimate of retail and food services sales in April showed a sharp jump, according to the latest released by the U.S. Census Bureau.
Retail and food services sales, not adjusted for inflation but adjusted for seasonal factors and calendar shift, increased 4.9% to $757.2 billion.
On a monthly basis, sales rose 0.5%, driven by gasoline station sales increases of 2.8% and sales at non-stores increased by 1.1% and food and beverages by 0.8%.
U.S. Movers
Cisco Systems jumped 15.6% to $117.80 after the networking gear maker's fiscal third quarter outlook surpassed expectations.
Revenue in the fiscal quarter ending in April rose 12% to $15.8 billion from $14.1 billion, net income advanced 35% to $3.4 billion from $2.1 billion, and diluted earnings per share increased 37% to 85 cents from 62 cents a year ago.
The company estimated fiscal fourth quarter revenue to range between $16.7 billion and $16.9 billion and earnings per share between 80 cents and 85 cents; and full-year revenue to range between $62.8 billion and $63.0 billion and earnings per share between $3.16 and $3.21.
Doximity Inc. dropped 21% to $18.44 after the digital healthcare platform operator reported quarterly results, and the company's outlook fell short of market expectations.
Revenue in the fiscal fourth quarter ending in March rose 5% to $145.4 million from $138.2 million, net income dropped to $19.1 million from $62.5 million, and diluted earnings per share fell to 10 cents from 31 cents a year ago.
The company guided current quarter revenue to range between $151 million and $152 million and adjusted operating income between $68.5 million and $69.5 million.
For the fiscal year 2027, the company estimated revenue between $664 million and $676 million and adjusted operating income between $323 million and $335 million.
Investors Overlook Brewing Inflationary Forces and Pour Capital In
Barry Adams
14 May, 2026
New York City
Stocks in New York traded higher, powered by another upswing in the semiconductor stocks.
The S&P 500 index increased 0.2%, and the tech-heavy Nasdaq Composite edged up 0.1%.
The semiconductor- and AI-related stocks continued to dominate market sentiment as investors piled fresh capital into the narrow segment of the market.
Intel, Nvidia, AMD, Corning, Broadcom, Micron Technology, Wolfspeed, and Qualcomm extended their recent gains amid continued enthusiasm about the demand from AI-driven datacenters.
Despite the market rally over the last seven weeks, hotter-than-expected producer price inflation kept market enthusiasm in check.
The producer price index soared in April, driven by a surge in wholesale prices of energy products, food, and transportation and warehousing services.
The measure of wholesale prices shot up 6.0% in April, the fastest annual increase since December 2022, when prices rose 6.4%.
The self-inflicted energy price shock has reignited inflationary forces in the U.S., as the supply disruptions in the Strait of Hormuz ripple through energy markets around the world.
U.S. Movers
Cisco Systems jumped 15.6% to $117.80 after the networking gear maker's fiscal third quarter outlook surpassed expectations.
Revenue in the fiscal quarter ending in April rose 12% to $15.8 billion from $14.1 billion, net income advanced 35% to $3.4 billion from $2.1 billion, and diluted earnings per share increased 37% to 85 cents from 62 cents a year ago.
The company estimated fiscal fourth quarter revenue to range between $16.7 billion and $16.9 billion and earnings per share between 80 cents and 85 cents; and full-year revenue to range between $62.8 billion and $63.0 billion and earnings per share between $3.16 and $3.21.
Doximity Inc. dropped 21% to $18.44 after the digital healthcare platform operator reported quarterly results, and the company's outlook fell short of market expectations.
Revenue in the fiscal fourth quarter ending in March rose 5% to $145.4 million from $138.2 million, net income dropped to $19.1 million from $62.5 million, and diluted earnings per share fell to 10 cents from 31 cents a year ago.
The company guided current quarter revenue to range between $151 million and $152 million and adjusted operating income between $68.5 million and $69.5 million.
For the fiscal year 2027, the company estimated revenue between $664 million and $676 million and adjusted operating income between $323 million and $335 million.
AI and Semiconductor Stocks Hovered Near Record Highs in Tokyo, Fujikura Plunged 19%
Akira Ito
14 May, 2026
Tokyo
Japan's indexes edged lower, crude oil prices remained volatile, and the yen retained its downward bias amid lingering uncertainty in the Middle East.
The Nikkei 225 Stock Average fell 0.8%, the broader Topix decreased 1%, and the yen eased to 157.88 against the U.S. dollar.
The Brent crude oil prices for a barrel inched up 0.6% to 106.25 amid ongoing hostilities in the Persian Gulf.
Japan's benchmark indexes retreated from record highs as investors booked profits following historic highs in AI- and semiconductor-related stocks.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.8% to 62,740.47, and the broader TOPIX declined 1% to 3,879.27.
SoftBank Group declined 4% to ¥5,770.00 despite the venture investment company reporting a sharp increase in quarterly profit driven by a valuation gain linked to its investment in OpenAI.
Net profit attributable to shareholders jumped to 1.83 trillion yen, or $11.6 billion, from 517.2 billion yen a year ago.
Investment gains drove the bulk of the increase in net income, which was driven by a large increase of 3.04 trillion yen in equity investments in the company's flagship Vision Funds.
SoftBank said the company's investment in OpenAI stood at $79.6 billion at the end of March, representing a cumulative capital gain of $45 billion on its initial investment.
Fujikura Ltd. decreased 19.1% to ¥6,355.0 despite the company posting double-digit gains in sales and earnings in the fiscal year ending in March.
Revenue advanced 20.7% to ¥1.2 trillion from ¥979.4 billion; net income attributable to shareholders advanced to ¥157.2 billion from ¥91.1 billion; and earnings per share rose to ¥94.93 from ¥55.05 a year ago.
The company announced a 6-for-1 stock split and announced a year-end dividend of 130.0 yen, increasing the total annual dividend to 225.0 yen compared to 100.0 yen a year ago.
The company's ordinary and operating profits were below the company's previous estimate released on February 9, largely because of the provision of 12.8 billion yen related to tariffs at its U.S. subsidiary.
By segment, telecommunication systems, automotive products, and power systems achieved record-high profits.
In telecommunication systems, net sales and operating profit increased due to demand for data centers, which continued to grow on the back of the spread and expansion of generative AI. Operating profit was 1.7 times higher than the previous year.
AI and Semiconductor Stocks Hovered Near Record Highs in Tokyo, Fujikura Plunged 19%
Akira Ito
14 May, 2026
Tokyo
Japan's indexes edged lower, crude oil prices remained volatile, and the yen retained its downward bias amid lingering uncertainty in the Middle East.
The Nikkei 225 Stock Average fell 0.8%, the broader Topix decreased 1%, and the yen eased to 157.88 against the U.S. dollar.
The Brent crude oil prices for a barrel inched up 0.6% to 106.25 amid ongoing hostilities in the Persian Gulf.
Japan's benchmark indexes retreated from record highs as investors booked profits following historic highs in AI- and semiconductor-related stocks.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.8% to 62,740.47, and the broader TOPIX declined 1% to 3,879.27.
SoftBank Group declined 4% to ¥5,770.00 despite the venture investment company reporting a sharp increase in quarterly profit driven by a valuation gain linked to its investment in OpenAI.
Net profit attributable to shareholders jumped to 1.83 trillion yen, or $11.6 billion, from 517.2 billion yen a year ago.
Investment gains drove the bulk of the increase in net income, which was driven by a large increase of 3.04 trillion yen in equity investments in the company's flagship Vision Funds.
SoftBank said the company's investment in OpenAI stood at $79.6 billion at the end of March, representing a cumulative capital gain of $45 billion on its initial investment.
Fujikura Ltd. decreased 19.1% to ¥6,355.0 despite the company posting double-digit gains in sales and earnings in the fiscal year ending in March.
Revenue advanced 20.7% to ¥1.2 trillion from ¥979.4 billion; net income attributable to shareholders advanced to ¥157.2 billion from ¥91.1 billion; and earnings per share rose to ¥94.93 from ¥55.05 a year ago.
The company announced a 6-for-1 stock split and announced a year-end dividend of 130.0 yen, increasing the total annual dividend to 225.0 yen compared to 100.0 yen a year ago.
The company's ordinary and operating profits were below the company's previous estimate released on February 9, largely because of the provision of 12.8 billion yen related to tariffs at its U.S. subsidiary.
By segment, telecommunication systems, automotive products, and power systems achieved record-high profits.
In telecommunication systems, net sales and operating profit increased due to demand for data centers, which continued to grow on the back of the spread and expansion of generative AI. Operating profit was 1.7 times higher than the previous year.
China Indexes Bounced Around Flatline, Alibaba Group In Focus
Li Chen
14 May, 2026
Hong Kong
China's stock market indexes bounced around the flatline, and investors awaited a diplomatic breakthrough between the U.S. and China.
The Hang Seng Index increased 0.4%, and the mainland-focused CSI 300 Index decreased more than 1% as the leaders of the U.S. and China held a summit in Beijing.
Tech stocks closed at record highs, as market sentiment rebounded over artificial intelligence infrastructure and applications.
The Trump-Xi summit is expected to cover a wide range of topics, including tariffs and trade, AI, geopolitical tensions in the Persian Gulf, and Taiwan.
However, investors are cautious about a possible breakthrough that could facilitate the reopening of the Strait of Hormuz.
The price of Brent crude oil increased 0.5% to $106.11 a barrel as peace talks between Iran and the U.S. showed no signs of progress, and Gulf nations struggled to ship energy products.
China Indexes and Stocks
The Hang Seng Index increased 0.4% to 26,498.59, and the mainland-focused CSI 300 Index declined 1.2% to 4,937.37.
Alibaba Group Holding Ltd. jumped 4.6% to HK$139.00, and the company reiterated its commitment to invest in artificial intelligence infrastructure.
Total revenue in the March quarter increased 2% from the previous quarter to 243.4 billion yuan, driven by a 38% annual revenue increase in cloud computing to 41.6 billion yuan.
Net income attributable to shareholders soared 105% to 25.5 billion yuan from 12.4 billion yuan a year ago, largely reflecting changes in equity investment and losses linked to the sale of Sun Art and Intime, recorded in the previous year.
Adjusted operating earnings plunged 84% from a year ago to 5.1 billion yuan.
For its full fiscal year ending in March, total revenue advanced 3% to 1.02 trillion yuan, and net profit fell 18% to 105.9 billion yuan.
The company also proposed 13 U.S. cents of cash dividend per share, or $1.05 per American depository share, totaling $2.5 billion.
The company's core e-commerce revenue in the quarter decreased 1% to 96.3 billion yuan.
China Indexes Bounced Around Flatline, Alibaba Group In Focus
Li Chen
14 May, 2026
Hong Kong
China's stock market indexes bounced around the flatline, and investors awaited a diplomatic breakthrough between the U.S. and China.
The Hang Seng Index increased 0.4%, and the mainland-focused CSI 300 Index decreased more than 1% as the leaders of the U.S. and China held a summit in Beijing.
Tech stocks closed at record highs, as market sentiment rebounded over artificial intelligence infrastructure and applications.
The Trump-Xi summit is expected to cover a wide range of topics, including tariffs and trade, AI, geopolitical tensions in the Persian Gulf, and Taiwan.
However, investors are cautious about a possible breakthrough that could facilitate the reopening of the Strait of Hormuz.
The price of Brent crude oil increased 0.5% to $106.11 a barrel as peace talks between Iran and the U.S. showed no signs of progress, and Gulf nations struggled to ship energy products.
China Indexes and Stocks
The Hang Seng Index increased 0.4% to 26,498.59, and the mainland-focused CSI 300 Index declined 1.2% to 4,937.37.
Alibaba Group Holding Ltd. jumped 4.6% to HK$139.00, and the company reiterated its commitment to invest in artificial intelligence infrastructure.
Total revenue in the March quarter increased 2% from the previous quarter to 243.4 billion yuan, driven by a 38% annual revenue increase in cloud computing to 41.6 billion yuan.
Net income attributable to shareholders soared 105% to 25.5 billion yuan from 12.4 billion yuan a year ago, largely reflecting changes in equity investment and losses linked to the sale of Sun Art and Intime, recorded in the previous year.
Adjusted operating earnings plunged 84% from a year ago to 5.1 billion yuan.
For its full fiscal year ending in March, total revenue advanced 3% to 1.02 trillion yuan, and net profit fell 18% to 105.9 billion yuan.
The company also proposed 13 U.S. cents of cash dividend per share, or $1.05 per American depository share, totaling $2.5 billion.
The company's core e-commerce revenue in the quarter decreased 1% to 96.3 billion yuan.
U.S. Movers: Birkenstock, Wolfspeed
Scott Peters
13 May, 2026
New York City
Wolfspeed, Inc. soared 21% to $65.00 after the advanced semiconductor company reported results for the fiscal third quarter ending in March.
Revenue decreased to $150.2 million from $185.4 million, net loss shrank to $119.9 million from $285.5 million, and diluted loss per share rose to $3.05 from $1.86 a year ago.
The company emerged from a voluntary proceeding under Chapter 11 and qualified for the adoption of fresh-start accounting on September 29, 2026.
The company improved its equity position by $400 million after it refinanced its $476 million debt and lowered its annual interest payment by $62 million.
The company estimated fiscal fourth quarter revenue between $140 million and $160 million, operating expenses to match the previous quarter, and gross margin to remain negative.
Investors bid up the stock after the company confirmed the shift in focus to AI datacenter applications, as the company cited sequential revenue growth of 30% in the unit.
Birkenstock Holdings PLC decreased 3% to $35.02 after the shoe designer and maker reported weaker-than-expected results for the fiscal second quarter ending in March.
Revenue increased 8% to Є618 million, net income decreased 22% to Є82 million, and diluted earnings per share fell to 45 cents from 56 cents a year ago.
The German shoe designer guided its fiscal 2026 revenue growth in constant currency to range between 13% and 15%, adjusted gross margin between 57.0% and 57.5%, and adjusted earnings per share, including tariffs and foreign exchange translation, between €1.90 and €2.05.
U.S. Movers: Birkenstock, Wolfspeed
Scott Peters
13 May, 2026
New York City
Wolfspeed, Inc. soared 21% to $65.00 after the advanced semiconductor company reported results for the fiscal third quarter ending in March.
Revenue decreased to $150.2 million from $185.4 million, net loss shrank to $119.9 million from $285.5 million, and diluted loss per share rose to $3.05 from $1.86 a year ago.
The company emerged from a voluntary proceeding under Chapter 11 and qualified for the adoption of fresh-start accounting on September 29, 2026.
The company improved its equity position by $400 million after it refinanced its $476 million debt and lowered its annual interest payment by $62 million.
The company estimated fiscal fourth quarter revenue between $140 million and $160 million, operating expenses to match the previous quarter, and gross margin to remain negative.
Investors bid up the stock after the company confirmed the shift in focus to AI datacenter applications, as the company cited sequential revenue growth of 30% in the unit.
Birkenstock Holdings PLC decreased 3% to $35.02 after the shoe designer and maker reported weaker-than-expected results for the fiscal second quarter ending in March.
Revenue increased 8% to Є618 million, net income decreased 22% to Є82 million, and diluted earnings per share fell to 45 cents from 56 cents a year ago.
The German shoe designer guided its fiscal 2026 revenue growth in constant currency to range between 13% and 15%, adjusted gross margin between 57.0% and 57.5%, and adjusted earnings per share, including tariffs and foreign exchange translation, between €1.90 and €2.05.
Global AI Trade Continues to Bloom On Wall Street, Hot Inflation Reports Keep Indexes Under Pressure
Barry Adams
13 May, 2026
New York City
Wall Street indexes inched higher amid renewed interest in semiconductor stocks and lingering uncertainty in the Strait of Hormuz.
The S&P 500 Index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7%, as investors remained optimistic about the artificial intelligence trade.
The West Texas Intermediate crude oil price decreased by 0.2% to $102.04 a barrel, and the international Brent crude oil price inched up 0.2% to $107.98 a barrel.
Despite the investor optimism, energy shipments through the Strait of Hormuz remained disrupted for the third month in a row, and continued hostilities in the Middle East are likely to prolong the closure of energy trade in the Persian Gulf.
Producer Prices In April Following Second Monthly Surge In Energy Prices
The producer price index soared in April, driven by a surge in wholesale prices of energy products, food, and transportation and warehousing services.
The measure of wholesale prices shot up 6.0% in April, the fastest annual increase since December 2022, when prices rose 6.4%.
The index for final demand less foods, energy, and trade services increased 4.4%, the largest 12-month increase since jumping 4.5% in February 2023.
The energy prices soared 7.8% in April, following a 10.1% rise in March from a year ago, according to a report released by the U.S. Bureau of Labor Statistics.
Over 40% of the April advance in prices for final demand goods can be attributed to a 15.6% increase in the index for gasoline.
Consumer price inflation accelerated to 3.8% in April from 3.3% in March, the highest since September 2023.
Core inflation, which excludes volatile food and energy prices, advanced to 2.8% from 2.6% in the previous month, according to a report from the U.S. Bureau of Labor Statistics on Tuesday.
U.S. Movers
Semiconductor stocks extended weekly and monthly gains as the rally approached a two-month anniversary.
NVIDIA, AMD, Broadcom, Micron Technology, and Intel advanced between 2% and 3%.
Wolfspeed, Inc. soared 21% to $65.00 after the advanced semiconductor company reported results for the fiscal third quarter ending in March.
Revenue decreased to $150.2 million from $185.4 million, net loss shrank to $119.9 million from $285.5 million, and diluted loss per share rose to $3.05 from $1.86 a year ago.
The company emerged from a voluntary proceeding under Chapter 11 and qualified for the adoption of fresh-start accounting on September 29, 2026.
The company improved its equity position by $400 million after it refinanced its $476 million debt and lowered its annual interest payment by $62 million.
The company estimated fiscal fourth quarter revenue between $140 million and $160 million, operating expenses to match the previous quarter, and gross margin to remain negative.
Investors bid up the stock after the company confirmed the shift in focus to AI datacenter applications, as the company cited sequential revenue growth of 30% in the unit.
Birkenstock Holdings PLC decreased 3% to $35.02 after the shoe designer and maker reported weaker-than-expected results for the fiscal second quarter ending in March.
Revenue increased 8% to Є618 million, net income decreased 22% to Є82 million, and diluted earnings per share fell to 45 cents from 56 cents a year ago.
The German shoe designer guided its fiscal 2026 revenue growth in constant currency to range between 13% and 15%, adjusted gross margin between 57.0% and 57.5%, and adjusted earnings per share, including tariffs and foreign exchange translation, between €1.90 and €2.05.
Global AI Trade Continues to Bloom On Wall Street
Barry Adams
13 May, 2026
New York City
Wall Street indexes inched higher amid renewed interest in semiconductor stocks and lingering uncertainty in the Strait of Hormuz.
The S&P 500 Index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7%, as investors remained optimistic about the artificial intelligence trade.
The West Texas Intermediate crude oil price decreased by 0.2% to $102.04 a barrel, and the international Brent crude oil price inched up 0.2% to $107.98 a barrel.
Despite the investor optimism, energy shipments through the Strait of Hormuz remained disrupted for the third month in a row, and continued hostilities in the Middle East are likely to prolong the closure of energy trade in the Persian Gulf.
U.S. Movers
Semiconductor stocks extended weekly and monthly gains as the rally approached a two-month anniversary.
NVIDIA, AMD, Broadcom, Micron Technology, and Intel advanced between 2% and 3%.
Wolfspeed, Inc. soared 21% to $65.00 after the advanced semiconductor company reported results for the fiscal third quarter ending in March.
Revenue decreased to $150.2 million from $185.4 million, net loss shrank to $119.9 million from $285.5 million, and diluted loss per share rose to $3.05 from $1.86 a year ago.
The company emerged from a voluntary proceeding under Chapter 11 and qualified for the adoption of fresh-start accounting on September 29, 2026.
The company improved its equity position by $400 million after it refinanced its $476 million debt and lowered its annual interest payment by $62 million.
The company estimated fiscal fourth quarter revenue between $140 million and $160 million, operating expenses to match the previous quarter, and gross margin to remain negative.
Investors bid up the stock after the company confirmed the shift in focus to AI datacenter applications, as the company cited sequential revenue growth of 30% in the unit.
Birkenstock Holdings PLC decreased 3% to $35.02 after the shoe designer and maker reported weaker-than-expected results for the fiscal second quarter ending in March.
Revenue increased 8% to Є618 million, net income decreased 22% to Є82 million, and diluted earnings per share fell to 45 cents from 56 cents a year ago.
The German shoe designer guided its fiscal 2026 revenue growth in constant currency to range between 13% and 15%, adjusted gross margin between 57.0% and 57.5%, and adjusted earnings per share, including tariffs and foreign exchange translation, between €1.90 and €2.05.
Rally in Tech Stocks Keeps Market Momentum Alive In Mainland China and Hong Kong
Li Chen
13 May, 2026
Hong Kong
China's indexes hugged the flatline, and investors reviewed the stalled peace process in the Middle East.
The Hang Seng Index declined 0.2%, the mainland-focused CSI 300 Index advanced 0.7%, and investors remained focused on corporate news.
The Brent crude oil prices decreased 1% to $106.10 a barrel, and prices remained elevated amid prolonged supply disruptions through the Strait of Hormuz.
A high-stakes summit between the leaders of China and the U.S. between May 14 and 15 is expected to cover several sensitive trade, military, and geopolitical issues.
However, investors are less enthusiastic about an immediate outcome that could lead to the reopening of the Strait of Hormuz.
China Indexes and Stocks
The Hang Seng Index decreased 0.2% to 26,286.79, and the mainland-focused CSI 300 Index rose 0.7% to 4,982.0.
Tech stocks erased some of the gains of the previous session, as investors booked profits.
Alibaba Group fell 0.4%, Tencent Holdings gained 1.2%, Baidu.com Inc. fell 1.6%, and Meituan advanced 4%.