WS #7339

The dominant signal in this window is the hot US inflation data, with April PPI surging 6% YoY (biggest since 2022) and CPI at 3.8% (highest since 2023), driven by energy costs from the Iran war. This has shifted Fed expectations toward a potential rate hike by year-end, pressuring growth stocks but lifting energy names. The Senate Banking Committee advancing a crypto bill (Clarity Act) continues to support crypto assets, with Bitcoin above $81,000 and XRP surging. Separately, Fed Governor Miran announced resignation effective when new Chair Warsh is sworn in, adding to leadership transition uncertainty. The Xi-Trump summit in Beijing is underway with joint agreement that Iran cannot have nuclear weapons, while Chinese tankers resume Hormuz transit under Iran coordination, a counter-signal to the blockade narrative. Alibaba and Tencent reported earnings missing revenue estimates but highlighting AI monetization progress, with Alibaba shares rallying on AI revenue disclosure. Anduril raised $5B at $61B valuation, signaling continued defense tech boom. The Anthropic-Gates Foundation $200M partnership is a positive for AI but not market-moving in the short term. The Ukraine-Russia conflict continues with mutual strikes but no new escalation. The MAG7 narrative is stable; no contradicting signals emerged. Overall, the inflation data and Fed policy shift are the highest-signal developments, with second-order effects on energy (bullish), airlines (bearish), and crypto (bullish on regulatory clarity).