Market Update
Solid Earnings Power Record Rally On Wall Street, investors Overlooked Inflation Acceleration
Barry Adams
12 May, 2026
New York City
Benchmark indexes in New York hovered near record highs on Tuesday as AI optimism and solid earnings dominated market sentiment.
The S&P 500 index decreased 0.4%, and the tech-heavy Nasdaq Composite declined 0.7% amid lingering tensions in the Middle East.
The broader index gained 0.2%, and the tech-focused index edged up 0.1% in the previous session, and they closed at new record highs.
AI- and semiconductor-linked stocks extended gains to the seventh week in a row amid recovering sentiment for artificial intelligence infrastructure investing following solid earnings.
Oil prices advanced for the second consecutive day this week after the U.S. and Iran failed to strike a peace deal, prolonging the opening of the Strait of Hormuz.
The West Texas Intermediate crude oil price increased 3% to $101.03 a barrel, and the international Brent crude oil price advanced 2.7% to $107.04 a barrel.
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.
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 the Bureau of Labor Statistics.
The inflation level was ahead of market expectations, mostly because of oil driven by the U.S. and Israel's war on Iran. Gasoline prices shot up 28.4% compared to an 18.9% rise in March from a year ago, respectively.
Shelter costs advanced at a faster pace of 3.0% in April compared to a 3.0% rise in March.
U.S. Movers
GameStop Corp. declined 4% to $22.15 after eBay Inc. rejected the company's $56 billion merger proposal, citing financing doubts.
eBay Inc. decreased 1% to $107.0, following the news.
Gitlab Inc. declined 10.3% to $22.92 after the company announced its restructuring plan and reaffirmed its first quarter and full-year 2027 revenue estimates.
The software company plans to reduce its country footprint by 30%, from 60, and accelerate its investment in agentic AI and organize into smaller and more focused product development teams to accelerate the release of new products.
Chief Executive Officer William Staples reiterated quarterly revenue to range between $253 million and $255 million, confirming the original estimate released on March 3.
Hims & Hers Health declined 14.5% to $24.84 after the telehealth service provider reported its quarterly results.
Revenue in the first quarter increased 4% to $608.1 million from $586.0 million, net income swung to a loss of $92.1 million from an income of $49.5 million, and diluted earnings per share swung to a loss of 40 cents from a profit of 20 cents a year ago.
For the second quarter, the company estimated revenue between $680 million and $700 million and adjusted operating income between $35 million and $55 million.
For the full year, the company guided revenue between $2.8 billion and $3.0 billion and adjusted operating income between $275 million and $300 million.
Solid Earnings Power Record Rally On Wall Street Ahead of Inflation Report
Barry Adams
12 May, 2026
New York City
Benchmark indexes in New York hovered near record highs on Tuesday as AI optimism and solid earnings dominated market sentiment.
The S&P 500 index decreased 0.4%, and the tech-heavy Nasdaq Composite declined 0.7% amid lingering tensions in the Middle East.
The broader index gained 0.2%, and the tech-focused index edged up 0.1% in the previous session, and they closed at new record highs.
AI- and semiconductor-linked stocks extended gains to the seventh week in a row amid recovering sentiment for artificial intelligence infrastructure investing following solid earnings.
Oil prices advanced for the second consecutive day this week after the U.S. and Iran failed to strike a peace deal, prolonging the opening of the Strait of Hormuz.
The West Texas Intermediate crude oil price increased 3% to $101.03 a barrel, and the international Brent crude oil price advanced 2.7% to $107.04 a barrel.
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.
Consumer price inflation is expected to accelerate to as high as 3.7% in April from 3.3% in March, the highest since September 2023.
Core inflation, which excludes volatile food and energy prices, is expected to advance to 2.7% from 2.6% in the previous month.
The Bureau of Labor Statistics is scheduled to release its report at 8:30 a.m. ET.
U.S. Movers
GameStop Corp. declined 4% to $22.15 after eBay Inc. rejected the company's $56 billion merger proposal, citing financing doubts.
eBay Inc. decreased 1% to $107.0, following the news.
Gitlab Inc. declined 10.3% to $22.92 after the company announced its restructuring plan and reaffirmed its first quarter and full-year 2027 revenue estimates.
The software company plans to reduce its country footprint by 30%, from 60, and accelerate its investment in agentic AI and organize into smaller and more focused product development teams to accelerate the release of new products.
Chief Executive Officer William Staples reiterated quarterly revenue to range between $253 million and $255 million, confirming the original estimate released on March 3.
Hims & Hers Health declined 14.5% to $24.84 after the telehealth service provider reported its quarterly results.
Revenue in the first quarter increased 4% to $608.1 million from $586.0 million, net income swung to a loss of $92.1 million from an income of $49.5 million, and diluted earnings per share swung to a loss of 40 cents from a profit of 20 cents a year ago.
For the second quarter, the company estimated revenue between $680 million and $700 million and adjusted operating income between $35 million and $55 million.
For the full year, the company guided revenue between $2.8 billion and $3.0 billion and adjusted operating income between $275 million and $300 million.
Japan's Household Spending Decline Extended to March, JTX Advanced Metals Plunged After Bond Issuance Plan
Akira Ito
12 May, 2026
Tokyo
Japan's indexes hovered near record highs as technology stocks extended gains amid sustained optimism surrounding AI-related demand.
The Nikkei 225 Stock Average increased 0.5%, the broader Topix gained 0.8%, and the yen edged up to 157.23 against the U.S. dollar.
The price of Brent crude oil rose 2.4% to $104.86 a barrel after the U.S. and Iran exchanged peace proposals, but the peace talks showed little progress.
Investors are increasingly factoring that the Strait of Hormuz is likely to remain closed for the foreseeable future, as the U.S. and Iran showed little urgency to resolve their differences.
On the economic front, Japan's household spending declined for the fourth consecutive month in March amid the rising cost of living.
Household spending decreased 2.9% from a year ago in March, sharper than the 1.8% decline in the prior month amid persistent inflationary pressure.
Spending on food declined 2.9% and utilities fell 3.2%, but expenditure on housing rose 15.3% and furniture and household spending increased 5.5%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 0.5% to 62,710.41, and the broader Topix Index advanced 0.8% to 3,872.73.
JX Advanced Metals plunged 15.2% to ¥4,842.0 after the sputtering targets maker announced its plan to issue new convertible bonds worth 250 billion yen, or $1.6 billion, to fund a stock buyback program.
The company's fiscal year revenue ending in March rose 23.7% to ¥884.6 billion from ¥714.9 billion, net income increased to ¥104.6 billion from ¥68.3 billion, and diluted earnings per share advanced to ¥112.71 per share from ¥73.53 a year ago.
Japan's Household Spending Decline Extended to March, JTX Advanced Metals Plunged After Bond Issuance Plan
Akira Ito
12 May, 2026
Tokyo
Japan's indexes hovered near record highs as technology stocks extended gains amid sustained optimism surrounding AI-related demand.
The Nikkei 225 Stock Average increased 0.5%, the broader Topix gained 0.8%, and the yen edged up to 157.23 against the U.S. dollar.
The price of Brent crude oil rose 2.4% to $104.86 a barrel after the U.S. and Iran exchanged peace proposals, but the peace talks showed little progress.
Investors are increasingly factoring that the Strait of Hormuz is likely to remain closed for the foreseeable future, as the U.S. and Iran showed little urgency to resolve their differences.
On the economic front, Japan's household spending declined for the fourth consecutive month in March amid the rising cost of living.
Household spending decreased 2.9% from a year ago in March, sharper than the 1.8% decline in the prior month amid persistent inflationary pressure.
Spending on food declined 2.9% and utilities fell 3.2%, but expenditure on housing rose 15.3% and furniture and household spending increased 5.5%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 0.5% to 62,710.41, and the broader Topix Index advanced 0.8% to 3,872.73.
JX Advanced Metals plunged 15.2% to ¥4,842.0 after the sputtering targets maker announced its plan to issue new convertible bonds worth 250 billion yen, or $1.6 billion, to fund a stock buyback program.
The company's fiscal year revenue ending in March rose 23.7% to ¥884.6 billion from ¥714.9 billion, net income increased to ¥104.6 billion from ¥68.3 billion, and diluted earnings per share advanced to ¥112.71 per share from ¥73.53 a year ago.
Hang Seng and CSI 300 Indexes Hovered at 5-Year Highs, CK Hutchison Plans to Sell Telecom Stake In UK
Li Chen
12 May, 2026
Hong Kong
Stocks in mainland China and Hong Kong struggled to advance amid lingering tensions in the Middle East.
The Hang Seng Index gained 0.5%, the mainland-focused CSI 300 Index edged higher 0.2%, and crude oil prices resumed their advance after the U.S.-Iran peace talks stalled.
The Brent crude oil price inched higher by 1.1% to $105.13 a barrel after the U.S. president rejected the latest overture from Iran and cast doubts over an immediate settlement.
Investors also reassessed the latest economic updates on inflation and international trade, and top political leaders reiterated their commitments to support for research and innovation for advanced semiconductor design and production.
Benchmark indexes in mainland China and Hong Kong are approaching their five-year highs amid improving earnings outlooks and receding geopolitical tensions.
However, the ongoing uncertainty in the Middle East kept gains in check as the six-week-long rally appears to stall.
China Indexes and Stocks
The Hang Seng Index gained 0.5% to 26,545.38, and the mainland-focused CSI 300 Index edged up 0.2% to 4,958.95.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu Inc. edged higher, and Internet platform operators and technology companies led gainers.
CK Hutchison Holdings soared 6% to $73.25 after the diversified conglomerate said it plans to sell its 49% stake in the UK-based VodafoneThree for $5.8 billion and book a gain of $600 million or about HK $4.7 billion.
The Hong Kong-based conglomerate is sitting on cash and cash equivalents worth HK$143.7 billion at the end of 2025, higher than HK$121.3 billion at the end of the previous year.
Hang Seng and CSI 300 Indexes Hovered at 5-Year Highs, CK Hutchison Plans to Sell Telecom Stake In UK
Li Chen
12 May, 2026
Hong Kong
China's Indexes Hovered Near Five-Year Highs, CK Hutchison to Sell Telecom Assets In UK
Li Chen
12 May, 2026
Hong Kong
Stocks in mainland China and Hong Kong struggled to advance amid lingering tensions in the Middle East.
The Hang Seng Index gained 0.5%, the mainland-focused CSI 300 Index edged higher 0.2%, and crude oil prices resumed their advance after the U.S.-Iran peace talks stalled.
The Brent crude oil price inched higher by 1.1% to $105.13 a barrel after the U.S. president rejected the latest overture from Iran and cast doubts over an immediate settlement.
Investors also reassessed the latest economic updates on inflation and international trade, and top political leaders reiterated their commitments to support for research and innovation for advanced semiconductor design and production.
Benchmark indexes in mainland China and Hong Kong are approaching their five-year highs amid improving earnings outlooks and receding geopolitical tensions.
However, the ongoing uncertainty in the Middle East kept gains in check as the six-week-long rally appears to stall.
China Indexes and Stocks
The Hang Seng Index gained 0.5% to 26,545.38, and the mainland-focused CSI 300 Index edged up 0.2% to 4,958.95.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu Inc. edged higher, and Internet platform operators and technology companies led gainers.
CK Hutchison Holdings soared 6% to $73.25 after the diversified conglomerate said it plans to sell its 49% stake in the UK-based VodafoneThree for $5.8 billion and book a gain of $600 million or about HK $4.7 billion.
The Hong Kong-based conglomerate is sitting on cash and cash equivalents worth HK$143.7 billion at the end of 2025, higher than HK$121.3 billion at the end of the previous year.
AI and Semiconductor-Powered Global Rally Shows No Signs of Losing Steam
Barry Adams
11 May, 2026
New York City
Wall Street indexes hovered near recent record highs on Monday as investors reassessed the uncertain situation in the Persian Gulf.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% amid a rebound in crude oil prices.
West Intermediate Texas crude oil price increased 2.5% to $97.78 a barrel, and Brent crude oil price advanced 2.4% to $103.82 a barrel after the U.S. and Iran exchanged proposals, leaving the Strait of Hormuz effectively closed.
Despite the elevated energy and commodity prices, benchmark indexes in New York soared to new record highs in the previous week, and the S&P 500 index and the Nasdaq Composite extended their winning streak to the sixth consecutive week.
The six-week-long market rebound has been powered by a strong earnings season and resurgent AI- and semiconductor-linked stocks following better-than-expected earnings from Nvidia, AMD, Alphabet, Apple Inc., Amazon, and General Electric.
On the economic front, the U.S. economy added net new 115,000 jobs in April, following March's revised 185,000 increase.
The jobs market expanded back-to-back for two months for the first time in a year, driven by gains in healthcare, transportation and warehousing, and retail trade.
The average hourly earnings for all employees rose 3.6%, the jobless rate held at 4.3%, and the participation rate in the labor force changed little at 61.8% in April.
Global Semiconductor Rally Supports Historic Highs In Broader Indexes
Benchmark indexes in the U.S., Japan, South Korea, and mainland China traded at new historic highs driven by the sustained gains in AI- and semiconductor-linked stocks.
Benchmark indexes in mainland China and Hong Kong erased morning gains and closed near the flatline, and investors reviewed the latest updates on inflation and international trade data.
China's Exports and Inflation Data Signal Economic Resiliency
China's annual inflation accelerated in April, fueled by a surge in the price of imported energy products and commodities, and producer price inflation increased for the second month in a row.
China's overall exports surged 14.3% in April, despite ongoing tensions in the Middle East, and customers rushed with new orders to avoid future price hikes and supply disruptions.
China's trade surplus narrowed to $84.8 billion in April from $95.9 billion a year ago, and the trade surplus with the U.S. stood at $23.1 billion, driven by an 11.3% rise in exports to $36.8 billion.
China's exports and trade surplus with the U.S. rose despite the Trump administration's tariffs, as businesses continued to source electrical and mechanical intermediate products from the world's second-largest economy.
Moreover, indirect shipments through the ASEAN region, including Vietnam, and Mexico to the U.S. showed no signs of easing.
U.S. Movers
AMD, Nvidia, Broadcom, Corning, Microchip Technology, and Micron Technology advanced in Monday's trading, extending the previous week's gains.
Alphabet, Apple, Amazon, Meta Platforms, Microsoft, and Tesla edged slightly lower in choppy trading on Monday.