Iran Rejects US Proposal; Trump Calls It Unacceptable; Lumentum Joins Nasdaq 100; Circle Earnings Today; ByteDance to Boost AI Spending by 25%

Iran Rejects US Peace Proposal Amid Ongoing Conflict

Overview

Iran has officially rejected a peace proposal put forth by the United States, which aimed to end a ten-week conflict. Both President Trump and Iranian representatives have dismissed each other's latest proposals, struggling to maintain a fragile ceasefire.

Key Developments

• Iranian state media reported on May 10 that accepting the US proposal would mean yielding to Trump's excessive demands.
• President Trump expressed his dissatisfaction with Iran's response, labeling it "completely unacceptable."

US-China Trade Talks Update

Upcoming Negotiations

The Chinese Ministry of Commerce announced that Vice Premier He Lifeng will lead a delegation to South Korea for trade talks with the US on May 12-13. These discussions will focus on economic issues of mutual concern, guided by previous agreements made during high-level meetings.

Federal Reserve Insights on AI Impact

Economic Predictions

Chicago Fed President Goolsbee warned that widespread expectations of AI productivity could lead to increased interest rates. He cautioned that if these expectations are not met, it could result in stagflation.

Saudi Aramco's Profit Report

Financial Performance

Saudi Aramco reported a net profit of $33.6 billion for Q1 2026, a 26% increase year-on-year, exceeding expectations. CEO Amin Nasser highlighted the importance of their east-west pipeline in mitigating global energy supply shocks.

ByteDance's AI Investment Plans

Increased Spending

ByteDance plans to increase its AI infrastructure spending by 25%, raising its 2026 budget to over 200 billion RMB (approximately $30 billion). This adjustment reflects the company's commitment to AI and the rising costs of memory chips.

US Stock Market Highlights

Record Highs

The S&P 500 and Nasdaq indices reached new all-time highs, driven by strong performances from tech stocks. Notable movements included:

• S&P 500: +0.84% to 7398.93
• Nasdaq: +1.71% to 26247.08
• Key tech stocks like Nvidia and Apple saw significant gains.

Semiconductor Sector Performance

Strong Gains

The semiconductor sector continued its upward trend, with companies like Micron and AMD posting substantial increases in stock prices.

Lumentum Joins Nasdaq 100

Index Inclusion

Lumentum will soon be included in the Nasdaq 100 index, replacing CoStar Group, effective May 18, 2026.

AI Competition Intensifies

New Entrants

OpenAI is reportedly developing a platform that directly competes with Palantir, intensifying competition in the AI space.

Apple and Intel Collaboration

Strategic Shift

Apple has reached a preliminary agreement with Intel for chip manufacturing, signaling a potential end to TSMC's exclusive contract.

Market Dynamics in AI Investments

Shifting Focus

Investors are reallocating funds from Nvidia to other semiconductor companies like Intel and AMD, reflecting a broader shift in AI infrastructure investment strategies.

Major IPOs and Financing Deals

Cerebras Systems

Cerebras Systems is set to go public with a strong demand for its AI chips, potentially raising its IPO price range.

Financing for Broadcom

Apollo Global Management and Blackstone are negotiating a $35 billion financing deal for Broadcom, aimed at supporting its AI chip development.

Moderna's Vaccine Research

New Developments

Moderna announced it is researching a vaccine for hantavirus, contributing to its portfolio of emerging infectious disease solutions.

Hong Kong Stock Market Activity

Notable Transactions

Recent trading saw significant net purchases in Hong Kong stocks, particularly in Kuaishou and Alibaba, while Xiaomi faced net sell-offs.

Alibaba's AI Integration

E-commerce Innovation

Alibaba plans to integrate its AI platform with Taobao, aiming to transform the shopping experience through conversational interactions.

SK Hynix Bonus Speculation

Employee Bonuses

SK Hynix responded to speculation about employee bonuses, stating that future performance remains uncertain.

Upcoming Economic Data

Key Releases

China's April CPI and PPI will be released soon, alongside earnings reports from various companies, including Tuya Smart and Circle.