Trump Arrives in Beijing; Senate Approves Waller as Fed Chair; April PPI Rises 6%

Summary of Recent Financial News

Trump's Visit to China

On May 13, U.S. President Donald Trump arrived in Beijing for a state visit from May 13 to 15, at the invitation of President Xi Jinping. This marks the second face-to-face meeting between the leaders since their last encounter in Busan last October, and it is Trump's first visit to China in nine years.

Kevin Walsh Confirmed as New Fed Chair

Kevin Walsh has been confirmed by the U.S. Senate as the next Chair of the Federal Reserve, succeeding Jerome Powell, who has held the position since 2018. The Senate voted 54-45 in favor of Walsh's appointment, concluding a selection process that began in the summer of 2025.

OPEC Reports Record Low Oil Production

OPEC's monthly report indicates that April oil production fell to its lowest level since 1990, with Saudi Arabia's output dropping to 6.32 million barrels per day, a 42% decline since February. Overall OPEC production decreased by 1.727 million barrels per day to 18.98 million barrels.

U.S. PPI Hits Highest Level Since 2022

The U.S. Producer Price Index (PPI) surged 6% year-on-year in April, marking the highest increase since 2022. Energy costs rose sharply by 7.8% in a single month, leading to increased speculation about interest rate hikes.

Long-Dated Treasury Auction Results

The U.S. Treasury sold $25 billion in 30-year bonds at a yield of 5.046%, the first time since the 2007 financial crisis that yields have surpassed 5%. This auction was seen as weak, indicating potential demand issues.

Stock Market Highlights

The Nasdaq and S&P 500 indices reached new all-time highs, driven by a rebound in chip stocks. Notable tech stocks like Nvidia, Google, and Apple also hit record valuations.

Cisco's Strong Earnings and AI Focus

Cisco reported better-than-expected earnings, with a revenue increase of 12% year-on-year. The company plans to focus on AI, expecting significant growth in orders from large cloud service providers.

Cerebras Systems IPO Demand Surges

Cerebras Systems is expected to price its IPO at $185 per share, significantly above the initial range of $150-$160, due to overwhelming demand.

Tencent and Alibaba Earnings Reports

Tencent reported a 9% year-on-year revenue increase, while Alibaba's revenue grew by 3%. Both companies are focusing heavily on AI, with Tencent's AI-related revenue expected to exceed 300 billion yuan by year-end.

Upcoming Economic Data

On May 9, the U.S. will release initial jobless claims and retail sales data. Additionally, earnings reports from companies like SMIC and Alibaba Health are anticipated.