Market Update
US Indexes Stay Elevated Amid Escalating Stagflation Risks
Barry Adams
18 May, 2026
New York City
The ongoing conflict in the Middle East dominated market sentiment on Monday, following the record-setting week.
The S&P 500 index decreased 0.1%, the tech-heavy Nasdaq Composite declined 0.2%, and the yield on 10-year U.S. treasury notes inched higher to 4.59%.
Stocks hovered near record highs, but the yields on the U.S. Treasury notes edged higher as the stalled peace process between the U.S. and Iran confirmed the prolonged suspension of energy products through the Strait of Hormuz.
Moreover, last week's inflation reports in the U.S., China, Japan and India confirmed that inflationary pressures are building, and higher energy prices have started to ripple through the economy.
Last week, global markets extended the previous week's gains, and benchmark indexes in the U.S. advanced for the seventh consecutive week.
The US-China summit statements underwhelmed investors and confirmed that China is not likely to stop selling high-tech defense technology to Russia and Iran.
Global stagflation risks are rising amid tighter global supply of energy products, higher prices of crude oil and natural gas, and sky-high U.S. federal government debt.
Crude oil and natural gas extended last week's 20% gains amid little progress between Iran and the U.S.; however, after the first of trading, prices eased about 1%.
Higher oil prices are causing significant disruptions to the economies of Japan, India, South Korea, and other smaller nations in Asia.
Moreover, supply disruptions in the Persian Gulf are forcing Gulf nations to sell their U.S. Treasury notes holdings and seek help from the U.S. Federal Reserve.
Benchmark indexes in France, Germany, and the U.K. advanced more than 0.5%, but they fell more than 1% in Australia, Hong Kong, and Japan and edged 0.1% higher in India.
US Indexes Stay Elevated Amid Escalating Stagflation Risks
Barry Adams
18 May, 2026
New York City
The ongoing conflict in the Middle East dominated market sentiment on Monday, following the record-setting week.
The S&P 500 index decreased 0.1%, the tech-heavy Nasdaq Composite declined 0.2%, and the yield on 10-year U.S. treasury notes inched higher to 4.59%.
Stocks hovered near record highs, but the yields on the U.S. Treasury notes edged higher as the stalled peace process between the U.S. and Iran confirmed the prolonged suspension of energy products through the Strait of Hormuz.
Moreover, last week's inflation reports in the U.S., China, Japan and India confirmed that inflationary pressures are building, and higher energy prices have started to ripple through the economy.
Last week, global markets extended the previous week's gains, and benchmark indexes in the U.S. advanced for the seventh consecutive week.
The US-China summit statements underwhelmed investors and confirmed that China is not likely to stop selling high-tech defense technology to Russia and Iran.
Global stagflation risks are rising amid tighter global supply of energy products, higher prices of crude oil and natural gas, and sky-high U.S. federal government debt.
Crude oil and natural gas extended last week's 20% gains amid little progress between Iran and the U.S.; however, after the first of trading, prices eased about 1%.
Higher oil prices are causing significant disruptions to the economies of Japan, India, South Korea, and other smaller nations in Asia.
Moreover, supply disruptions in the Persian Gulf are forcing Gulf nations to sell their U.S. Treasury notes holdings and seek help from the U.S. Federal Reserve.
Benchmark indexes in France, Germany, and the U.K. advanced more than 0.5%, but they fell more than 1% in Australia, Hong Kong, and Japan and edged 0.1% higher in India.
Japan's Producer Price Inflation Accelerated to a 3-Year High, Tech Stocks Plunged 8%
Akira Ito
15 May, 2026
Tokyo
Japan's indexes closed sharply lower and extended weekly losses as investors monitored developments in the Middle East.
The Nikkei 225 Stock Average dropped 2%, the broader TOPIX decreased 0.4%, and the yen weakened to 158.44 against the U.S. dollar.
Market sentiment worsened in Friday's trading as investors reviewed the latest wholesale inflation update and monitored the Trump-Xi summit in Beijing.
Japan's producer price index accelerated in April as the global oil supply shock rippled through the economy.
The producer price index accelerated to an annual increase of 4.9% in April from the upwardly revised 2.8% in the previous month, according to the Bank of Japan in its monthly update.
The measure of wholesale inflation advanced at the fastest pace since May 2023 amid intensifying cost pressures following a spike in energy prices linked to the supply chain disruptions from the war in Iran.
On a monthly basis, the producer price index increased 2.3%, faster than 1.0% in March and the fastest increase since April 2014.
The sharp jump in wholesale prices is likely to make its way to consumers over the next few months, which is expected to push policymakers to raise interest rates sooner rather than later.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2% to 61,409.29, and the broader Topix fell 0.4% to 3,863.97.
Tech stocks faced heavy selling pressure amid worries of the Bank of Japan's policymakers lifting rates faster than previously estimated.
Kioxa Holdings declined 8%, Fujikura Ltd. dropped 9%, SoftBank Group fell 0.5%, Furukawa Electric decreased 4.9%, and Advantest Corp. eased 7.9%.
Japan's Producer Price Inflation Accelerated to a 3-Year High, Tech Stocks Plunged 8%
Akira Ito
15 May, 2026
Tokyo
Japan's indexes closed sharply lower and extended weekly losses as investors monitored developments in the Middle East.
The Nikkei 225 Stock Average dropped 2%, the broader TOPIX decreased 0.4%, and the yen weakened to 158.44 against the U.S. dollar.
Market sentiment worsened in Friday's trading as investors reviewed the latest wholesale inflation update and monitored the Trump-Xi summit in Beijing.
Japan's producer price index accelerated in April as the global oil supply shock rippled through the economy.
The producer price index accelerated to an annual increase of 4.9% in April from the upwardly revised 2.8% in the previous month, according to the Bank of Japan in its monthly update.
The measure of wholesale inflation advanced at the fastest pace since May 2023 amid intensifying cost pressures following a spike in energy prices linked to the supply chain disruptions from the war in Iran.
On a monthly basis, the producer price index increased 2.3%, faster than 1.0% in March and the fastest increase since April 2014.
The sharp jump in wholesale prices is likely to make its way to consumers over the next few months, which is expected to push policymakers to raise interest rates sooner rather than later.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2% to 61,409.29, and the broader Topix fell 0.4% to 3,863.97.
Tech stocks faced heavy selling pressure amid worries of the Bank of Japan's policymakers lifting rates faster than previously estimated.
Kioxa Holdings declined 8%, Fujikura Ltd. dropped 9%, SoftBank Group fell 0.5%, Furukawa Electric decreased 4.9%, and Advantest Corp. eased 7.9%.
China's Indexes Extended Weekly Losses Amid Worries of Higher Inflation
Li Chen
15 May, 2026
Hong Kong
China's benchmark indexes turned lower and extended weekly losses amid growing worries over the oil-supply shock and resurgent inflation forces.
The Hang Seng Index decreased by 1.3%, while the mainland-focused CSI 300 Index declined by 0.5%, extending their weekly losses to 1.3% and 0.5%, respectively.
The Trump-Xi summit covered a wide range of topics, including tariffs, agriculture products trade, C919 aircraft certification, Taiwan's independence, and the reopening of the Strait of Hormuz.
In the coming months, China's wholesale inflation is expected to accelerate, driven by persistent energy prices and tight supply conditions.
Moreover, South Korea's export prices soared 40.8% from a year ago in April, confirming intensifying pricing pressure in external markets.
The prices of computers, electronics, and optical equipment soared 88.7%, contributing to an overall rise in manufactured goods prices.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 26,037.42, and the mainland-focused CSI 300 Index declined 0.5% to 4,887.19.
AI- and semiconductor-related stocks hovered near recent highs, tracking gains in overnight trading in New York.
Alibaba Group declined 4%, Tencent Holdings edged up 0.2%, Meituan decreased 3.9%, and JD.com declined 2.5%.
China's Indexes Extended Weekly Losses Amid Worries of Higher Inflation
Li Chen
15 May, 2026
Hong Kong
China's benchmark indexes turned lower and extended weekly losses amid growing worries over the oil-supply shock and resurgent inflation forces.
The Hang Seng Index decreased by 1.3%, while the mainland-focused CSI 300 Index declined by 0.5%, extending their weekly losses to 1.3% and 0.5%, respectively.
The Trump-Xi summit covered a wide range of topics, including tariffs, agriculture products trade, C919 aircraft certification, Taiwan's independence, and the reopening of the Strait of Hormuz.
In the coming months, China's wholesale inflation is expected to accelerate, driven by persistent energy prices and tight supply conditions.
Moreover, South Korea's export prices soared 40.8% from a year ago in April, confirming intensifying pricing pressure in external markets.
The prices of computers, electronics, and optical equipment soared 88.7%, contributing to an overall rise in manufactured goods prices.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 26,037.42, and the mainland-focused CSI 300 Index declined 0.5% to 4,887.19.
AI- and semiconductor-related stocks hovered near recent highs, tracking gains in overnight trading in New York.
Alibaba Group declined 4%, Tencent Holdings edged up 0.2%, Meituan decreased 3.9%, and JD.com declined 2.5%.
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.