S&P 500 – 7,400.96 (-0.16%)

Dow Jones – 49,760.56 (+0.11%)

NASDAQ – 26,088.20 (-0.71%)

• MARKETS: Markets opened lower Tuesday as investors reacted to a slightly hotter-than-expected inflation report, with weakness spreading across most sectors and consumer discretionary and materials leading losses.
• POLITICS & GLOBAL TRADE: President Trump began his trip to China, where he is set to meet President Xi Jinping, with trade policy and artificial intelligence expected to dominate discussions alongside high-profile tech executives including Elon Musk and Tim Cook.
• RATES: Treasury yields moved higher, with the 10-year rising to 4.45% as investors reassess inflation and policy expectations.
• GLOBAL MARKETS: Overseas, Asian equities closed mostly lower overnight, while European markets also came under pressure in a broad risk-off session.
• COMMODITIES: WTI crude oil extended gains as ongoing disruptions to shipping flows through the Strait of Hormuz continued to support energy prices.
• CURRENCIES: The U.S. dollar strengthened against major peers, helped by rising bond yields and shifting rate expectations.
• METALS: Copper surged above $14,000 per ton, approaching record highs amid tight supply conditions and strong industrial demand signals.
• SILVER: Silver jumped 17% over the past five days, with momentum building ahead of the anticipated Trump–Xi meeting.
• INFLATION DATA: April CPI rose 3.8% year over year, slightly above expectations, driven largely by a 17.9% surge in energy prices, while core inflation edged up to 2.8% versus forecasts of 2.7%.
• LABOR MARKET: ADP data showed private employers added an average of 33,000 jobs per week over the past month, signaling steady but modest hiring momentum.
• HIMS & HERS (HIMS): Shares fell after a wider-than-expected loss, weaker per-prescriber revenue, and soft forward guidance disappointed investors.
• SEMICONDUCTORS: Memory chip stocks pulled back as traders locked in profits after a recent rally driven by supply constraints and rising prices.
• QANTUM COMPUTING (QUNT): Shares rose after the company posted $3.7 million in revenue, sharply higher year over year and ahead of Wall Street expectations.
• UNDER ARMOUR (UAA): The stock dropped after missing earnings estimates and issuing weak guidance, including a forecast for revenue decline in fiscal 2027.
• GAMESTOP / EBAY (GME / EBAY): GameStop declined while eBay slipped after rejecting a reported $55 billion takeover bid, citing concerns over financing, valuation, and execution risk.
• WENDY’S (WEN): Shares surged on reports that activist investor Trian Fund Management is exploring a potential take-private transaction.
• ON HOLDING (ONON): The stock fell despite better-than-expected earnings, as investors focused on broader demand concerns.
• LOWE’S (LOW): Lowe’s gained after Citigroup upgraded the stock to “buy,” citing expectations for earnings upside and continued industry outperformance.
• BIG TECH & AI FINANCING: Alphabet and Amazon declined after reports of potential yen-denominated bond issuance tied to rising AI investment needs.
• RATE OUTLOOK: CME FedWatch shows markets pricing in a near 98% probability that the Fed will hold rates steady in June and likely through most of 2026.
• CLOSING NOTE: U.S. stocks fell Tuesday as inflation data and geopolitical uncertainty weighed on sentiment while investors also reassessed the sustainability of the recent tech-driven rally.
• WHAT TO WATCH: Traders will look ahead to additional inflation signals, upcoming retail sales and PPI data, and a new wave of earnings reports for confirmation on whether inflation pressures are stabilizing and if economic growth remains resilient.

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“I have not failed. I’ve just found 10,000 ways that won’t work.”

— Thomas Edison

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Notable Stocks

• eBay (EBAY)
• GameStop (GME)
• Hims & Hers (HIMS)
• On Holding (ONON)
• Lowe’s (LOW)

Weekly Notables

Amazon Launches 30-Minute Delivery Service in Aggressive Expansion of “Ultra-Fast” Shipping

Amazon is rolling out deliveries in 30 minutes or less across dozens of U.S. cities, marking its most aggressive move yet into ultra-fast “quick commerce,” the company announced Tuesday. The service, branded Amazon Now, began as a limited pilot in December and has already expanded internationally, including select cities in Brazil, Mexico, India, and the United Arab Emirates.

Makary is Out as FDA Commissioner Following Industry Backlash and Internal Turmoil

FDA Commissioner Dr. Marty Makary has been removed from his role, with a deputy stepping in as acting head of the agency, President Donald Trump confirmed Tuesday. Makary’s departure comes after mounting tensions within the administration and growing criticism from drugmakers, physicians, and patient groups over regulatory decisions during his tenure. “He’s a wonderful man and he’s going to be off, and the assistant, the deputy, is taking over temporarily,” Trump told reporters. “He’s going to go on, and he’s going to lead a good life.”

Earnings Spotlight: Cisco (CSCO)

Cisco (CSCO) is scheduled to release its fiscal third-quarter 2026 earnings today with analysts projecting an EPS of roughly $1.03–$1.04 and revenue of approximately $15.55 billion, reflecting continued growth driven by AI infrastructure, according to Visible Alpha and Yahoo Finance reports. 

What's Ahead

May 13: April PPI and core PPI, and expected earnings from Alibaba (BABA) and Cisco (CSCO).
May 14: April retail sales and expected earnings from Applied Materials (AMAT).
May 15: April industrial production and capacity utilization.
May 18: Expected earnings from Baidu (BIDU).
May 19: Expected earnings from Home Depot (HD), Toll Brothers (TOL), and Cava Group (CAVA), and April housing starts and building permits.