US-Iran clashes, Trump calls it a "minor punishment"; China increases gold reserves; CoreWeave misses expectations; Nvidia partners with Iren.

Trump Responds to Iran Strikes: "Just a Minor Punishment," Ceasefire Still Effective

On Thursday, May 7, tensions escalated in the Hormuz region as Iran's military announced that the U.S. and some regional countries conducted airstrikes on civilian areas along Iran's coast. The U.S. military confirmed targeted strikes on Iranian military facilities responsible for attacks on U.S. forces. Iranian media reported explosions near the port of Abbas and attacks on a dock on Qeshm Island, with Iranian officials suggesting retaliation against the UAE. President Trump characterized the U.S. response as a "minor punishment" and stated that the ceasefire remains in effect.

U.S. Trade Court Rules Trump's 10% Global Tariff Invalid

The U.S. International Trade Court ruled that Trump's global 10% tariff, imposed under a 1970s trade law, lacks legal basis. The court's 2-1 decision favored a group of small business plaintiffs, declaring the tariff inconsistent with applicable laws. This tariff officially took effect on February 24.

Wang Yi Meets U.S. Congressional Delegation

On May 7, Wang Yi, a member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with a U.S. Congressional delegation in Beijing. Wang emphasized the importance of U.S.-China relations for the welfare of both nations and global stability, advocating for mutual respect and cooperation.

China’s Central Bank Increases Gold Reserves for 18th Consecutive Month

As of April 2026, China's foreign exchange reserves reached $34,105 billion, up $6.84 billion from March. The country's gold reserves increased to 74.64 million ounces, marking the 18th consecutive month of accumulation.

San Francisco Fed President Downplays Fed Statement Discrepancies

Mary Daly, President of the San Francisco Fed, downplayed internal disagreements regarding the Fed's policy statements, asserting that actions are more important than wording. She noted that current monetary policy is in a "mildly restrictive" range and that resolving U.S.-Iran tensions could exert downward pressure on inflation.

New York Fed Survey: U.S. Consumer Inflation Expectations Stable

The New York Fed's consumer expectations survey revealed that respondents expect a 3.6% inflation rate one year from now, slightly up from 3.4% in March. Long-term inflation expectations for three and five years remain stable at 3.1% and 3%, respectively.

U.S. Stock Market Overview

On Thursday, all three major U.S. indices closed lower amid a market adjustment, with military conflicts in Iran escalating. The S&P 500 fell 0.38% to 7,337.11 points, the Nasdaq Composite dropped 0.13% to 25,806.2 points, and the Dow Jones Industrial Average decreased 0.63% to 49,596.97 points.

Notable Stock Movements

• Tech Stocks: Mixed performance with Nvidia up 1.77%, Google down 0.01%, Apple down 0.02%, and Microsoft up 1.65%.
• Chinese Stocks: Alibaba down 0.31%, Pinduoduo down 0.78%, and JD.com down 1.56%.
• AI Software Stocks: Datadog surged 31.33% after strong earnings, while MongoDB rose 10.62%.

Other Market Highlights

• Nvidia and IREN announced a strategic partnership, with Nvidia acquiring up to 30 million shares at $70 each, causing IREN's stock to rise nearly 30% initially.
• CoreWeave reported a 112% year-over-year revenue increase but saw an expanded loss, leading to an 8% drop in after-hours trading.
• Coinbase reported a Q1 loss of $1.49 per share, resulting in a 4% decline in after-hours trading.

Hong Kong Market Activity

On May 7, southbound funds sold off nearly HKD 4.8 billion in Hong Kong stocks, with notable net purchases in SMIC and significant sales in Tencent and Meituan.

Upcoming Economic Data

Key economic data, including U.S. April non-farm payrolls, unemployment rates, and consumer confidence indices, are set to be released soon.