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Markets
Warsh nomination as Fed chair raises bull-market unwind risk, analysts warn
Kevin Warsh's arrival as Federal Reserve chair on May 15 sets in motion forces that could unwind the equity rally. His agenda to shrink the $6.7 trillion balance sheet and negotiate a new Treasury-Fed accord collides with Trump's demand for rate cuts.
Federal Reserve quickly running out of reasons to cut interest rates
The Federal Reserve is quickly running out of reasons to cut interest rates after April payrolls rose by 115,000 and inflation resumed its climb to 3.3 per cent. A growing bloc of hawkish dissent on the FOMC and revised bank forecasts now point to an indefinite hold, boxing in incoming chair Kevin Warsh.
Aramco Q1 profit rises 26pc as pipeline offsets Hormuz closure
Saudi Aramco reported a 26 per cent rise in first-quarter adjusted net income to $33.6 billion, beating analyst estimates. The crude price surge that followed the closure of the Strait of Hormuz flowed through to the state oil giant's bottom line.
AI lifts S&P 500 to record as valuations outrun earnings
Wall Street ended the week with the S&P 500 at a record 7,209 and the Nasdaq at 24,892, the latest peaks in an AI-led rally that has carried US equity valuations to their most stretched levels since the dot-com era. Earnings beats have closed only part of the gap.
African oil producers face revenue risk as UAE quits OPEC
African oil exporters face a revenue squeeze while import-dependent economies stand to gain from lower fuel costs after the UAE exited OPEC on 1 May, ending 59 years of membership in the producers' group.
Fed inflation tracker warns prices accelerating as Iran war fuel shock persists
Cleveland Fed nowcast shows headline PCE at 3.73 per cent in April and a Q2 pace above 5 per cent, narrowing the path to any 2026 rate cut. Goolsbee says cuts may slip to 2027.
NewSquare trims $14.8m QTEC position after 60% technology run
NewSquare Capital cut its $14.80m position in the First Trust QTEC ETF to just 0.03 per cent of assets, according to a 13F filing. The trim follows a 60 per cent technology rally and stretches QTEC's P/E above 38.
Cash piles top $8.2 trillion as US equity benchmarks set records
Money parked in US money market funds reached an all-time high of $8.2 trillion in early May as the Dow, S&P 500 and Nasdaq Composite traded near records. The simultaneous build in cash and equities is unusual in modern market history.
Iran war could force Fed to raise rates, Pimco warns
Pimco economist Tiffany Wilding says the Federal Reserve's next move is still likely a cut but warns the Iran conflict could force a hike if energy supply disruption proves prolonged, as central banks worldwide freeze their easing cycles.
Burry warns semiconductor rally echoes dot-com bubble final phase
Michael Burry, the investor who predicted the 2008 housing crash, has warned the AI-driven semiconductor rally mirrors the final months of the 1999-2000 dot-com bubble, disclosing put options on Nvidia, Palantir and chip ETFs representing 80 per cent of his hedge fund portfolio.
Yardeni lifts S&P 500 target to 8,250 as earnings defy macro risks
Ed Yardeni raised his year-end S&P 500 target to 8,250, the highest on Wall Street, and boosted the odds of his Roaring 2020s thesis to 80 per cent, betting that resilient corporate earnings will overwhelm risks from the Hormuz closure and elevated bond yields.
US consumer sentiment hits record low as gas prices eclipse jobs data
The University of Michigan's consumer sentiment index fell to 48.2 in May, the lowest reading since the survey began in 1952, even as employers added nearly twice the number of jobs economists had expected in April.
Nvidia AI equity bets top $40 billion as circular-deal scrutiny grows
Nvidia's stakes in OpenAI, Corning and IREN top $40 billion, sharpening debate over whether the chipmaker is building a moat or funding a closed loop.
SK hynix HBM capacity hits zero as Big Tech offers fab funding
SK hynix told customers its high-bandwidth memory output is sold out and that Big Tech buyers are offering to fund new fabs and ASML lithography purchases.
Fed warns rising risks even as financial system holds firm
The US Federal Reserve's May Financial Stability Report flagged geopolitical conflict, an oil supply shock and AI-related leverage as the top concerns of market contacts. The central bank said the financial system remains resilient, with banks well capitalised.
Broadcom slides 4% as OpenAI custom chip financing stalls at $18bn
AVGO shares fell about 4 per cent on Thursday after The Information reported Broadcom and OpenAI are at an impasse over $18bn in first-phase financing for the planned custom-chip rollout.
S&P 500 and Nasdaq notch records on AI and earnings optimism
The S&P 500 and Nasdaq Composite closed at record highs on Friday, lifted by AI chipmaker gains and a first-quarter earnings season running well ahead of estimates.
Micron surges 38 per cent in a week on AI memory demand
Micron Technology shares surged 38 per cent over five trading sessions to close at a record $746.81 on Friday, pushing the chipmaker's market capitalisation past $840bn. The rally was driven by AI-fuelled demand for high-bandwidth memory, which is sold out for the whole of 2026.
Baidu chip unit Kunlunxin files for Shanghai IPO alongside Hong Kong plan
Baidu's AI chip arm Kunlunxin has filed for a Shanghai STAR Market IPO in addition to a separate Hong Kong listing already in train, with Baidu's Hong Kong shares closing up 5.75 per cent on the news.
UK borrowing costs fall and pound rises as Starmer vows to stay on
UK government bond yields fell and sterling strengthened on Friday as Prime Minister Keir Starmer said he would remain in office despite heavy losses for Labour in local elections that saw Reform UK make major gains.
Powell's final week as Fed chair begins as Senate prepares to confirm Warsh
Powell's final week as Fed chair begins with Kevin Warsh's Senate confirmation set for May 11, the DOJ probe of Powell freshly closed, and bond yields, banks and the dollar already trading the handover.
Oil rises above $102 as US and Iran trade fire in Strait of Hormuz
Brent crude rose 2.64 per cent to $102.70 a barrel on Friday after the US and Iran exchanged fire in the Strait of Hormuz in the most serious confrontation since the ceasefire took effect in early April.
Why Thursday's UK local elections matter for global bond markets
The 30-year UK gilt yield closed at a 28-year high on Tuesday as global investors priced the political premium tied to Thursday's council elections. A heavy Labour defeat could trigger a leadership challenge, force out Chancellor Rachel Reeves, and reset the term premium across developed-market sovereign curves.
AMD beats on Q1 as data-center revenue jumps 57%, lifting AI chip rally
Advanced Micro Devices reported $10.25 billion in first-quarter revenue and $1.37 EPS on Tuesday, with data-center sales up 57 per cent to $5.78 billion. Shares rose 18 per cent on Wednesday and lit a wider chip-stock rally.
Long bonds crack 5% then ease as Treasury holds $125bn refunding line
The 30-year US Treasury yield touched 5.03 per cent on Monday, its first break above the threshold since July, before pulling back. On Wednesday Treasury kept its $125 billion refunding plan flat and held the line on its forward guidance.
