WS #7250

The dominant signal in this window is the Trump-Xi summit in Beijing, with Trump arriving on May 13 accompanied by top US CEOs including Elon Musk, Tim Cook, and Jensen Huang. The summit covers tariffs, rare earths, AI, Iran, and Taiwan. No concrete deal has been announced yet, but the high-profile delegation and positive framing suggest potential for trade de-escalation. Separately, Alibaba shares surged 8% in New York after reporting triple-digit AI revenue growth for 11 consecutive quarters, with AI products expected to exceed 50% of cloud revenue within a year. This is a strong positive signal for Chinese tech and AI stocks. On the macro front, US wholesale inflation jumped 6% annually in April, the biggest increase since 2022, reinforcing hawkish Fed expectations. Kevin Warsh was confirmed as Fed Chair, a known hawk. The Hormuz closure continues to pressure oil markets, with OPEC warning of 30% production cut. India banned sugar exports until September, adding to commodity supply concerns. GameStop's Ryan Cohen signaled he may put eBay's $56B acquisition offer to a shareholder vote, escalating the hostile bid. Cerebras IPO pricing at $40B valuation signals strong AI demand. The prevailing themes are: Trump-Xi summit (ESCALATING - high stakes, no deal yet), Alibaba AI pivot (BULLISH), inflation/Fed hawkishness (STABLE), oil supply crisis (STABLE).