US-Iran Stalemate, Inflation Concerns Impact AI Market; Samsung Strike Countdown; Baidu Earnings Today

Ongoing US-Iran Standoff and Market Reactions

Negotiation Stalemate

According to Bloomberg, the US and Iran remain at an impasse in negotiations aimed at resolving weeks of conflict and restoring shipping in the Strait of Hormuz. President Trump warned Iran to "act quickly" or "nothing will be left," following previous threats to target Iranian civilian infrastructure. Meanwhile, new drone attacks have been reported in the UAE and Saudi Arabia, heightening market concerns over regional instability.

Rising US Treasury Yields

As inflation fears escalate due to the Iran conflict, the yield on 30-year US Treasury bonds is nearing 5%, a twenty-year high. Market traders are beginning to anticipate a new era of higher borrowing costs. The surge in yields is attributed to disruptions in shipping through the Strait of Hormuz, which have driven energy prices up and inflation expectations higher. Jeffrey Gundlach, CEO of DoubleLine Capital, stated that a rate cut by the Federal Reserve at the next policy meeting is "not possible."

Federal Reserve Leadership Transition

The Federal Reserve announced that Jerome Powell will temporarily serve as "acting chair" until Kevin Warsh is officially sworn in as the new chair.

SpaceX's Upcoming IPO

Reports indicate that Elon Musk's SpaceX plans to go public on the Nasdaq as early as June 12, with a target valuation of $1.75 trillion. This IPO is expected to be one of the most anticipated in recent years, with a financing goal of approximately $75 billion.

Goldman Sachs on Market Risks

Goldman Sachs strategists highlighted that the biggest threat to the current market is the "Iran risk combined with a rate storm." They noted that the market's pricing of US economic growth has risen to 2.5%, potentially over-adjusted, while the pricing of risks associated with Iran remains low.

Preliminary Results from US-China Trade Talks

The Chinese Ministry of Commerce reported preliminary outcomes from US-China trade discussions, including agreements on tariff arrangements and the establishment of trade and investment councils.

Longsys Technology's Revenue Forecast

Longsys Technology expects revenue between 110 billion to 120 billion yuan for the first half of 2026, with a net profit forecast of 520 billion to 580 billion yuan, driven by global demand for DRAM products.

US Stock Market Decline

On Friday, US stock indices fell over 1% as inflation concerns rose due to soaring oil prices. The Dow Jones dropped 537.35 points, while major tech stocks like Micron and Intel saw significant declines.

Samsung's Labor Negotiations

Samsung Electronics faces a potential large-scale strike, with negotiations set to resume on May 18. The South Korean government issued a "final ultimatum" regarding the negotiations.

Berkshire Hathaway's Investment Moves

In Q1 2026, Berkshire Hathaway significantly adjusted its portfolio, investing approximately $2.65 billion in Delta Airlines while increasing its stake in Google and liquidating positions in Amazon and Visa.

UnitedHealth's AI Strategy

UnitedHealth is ramping up its AI initiatives, tracking employee usage of AI tools like ChatGPT, with plans to invest $1.5 billion in AI this year.

Hong Kong Stock Market Activity

On May 15, southbound funds net bought HK stocks worth 24.95 billion HKD, with significant purchases in the Tracker Fund of Hong Kong.

Upcoming Economic Data Releases

China's April economic data, including housing prices in 70 cities, is set to be released at 9:30 AM and 10:00 AM Beijing time.