TL;DR

U.S. CPI misses; U.S.-China tariff truce aids Tesla; Nvidia, AMD, Amazon, Qualcomm win Saudi AI deals.

Highlights

• U.S. April CPI and Core CPI both rose 0.2% MoM, below forecasts; YoY CPI at 2.3%1.
• Trump announces U.S.-China trade truce: 90-day tariff cut (145% to 30%), China to open markets2.
• Tesla to resume U.S. production with Chinese components for Cybercab and Semi after tariff rollback3.
• Nvidia, AMD, Amazon, Qualcomm secure multi-billion-dollar AI infrastructure deals in Saudi Arabia; U.S. eases chip export rules5.
• WTI crude falls to $60, below U.S. shale break-even; Trump seen favoring $40–$50 oil4.
• Foxconn Q1 profit up 91% on AI server demand; 2025 outlook trimmed due to tariffs, FX volatility11.
• Global EV sales up 29% YoY in April, led by China and Europe; BYD outpaces Tesla in both regions12.
• eToro raises $620M in Nasdaq IPO, valued at $4.2B, driven by strong crypto trading9.
• Abraxas Capital and Grayscale buy over $560M in Ethereum as ETH rallies 44%10.
• Sony reports record profit but guides for 13% decline next year on $6.8B tariff impact; $17B buyback announced13.
• House Republicans propose $700B Medicaid cut, potentially impacting 13.7M Americans; bill faces Democratic resistance16.
• EU approves new Russia sanctions targeting shadow oil fleet and cyber capabilities; France pushes for 500% Russian oil tariff617.

Commentary

Softer-than-expected U.S. CPI data for April supports a stable rates outlook, with both headline and core inflation coming in below consensus1. This should underpin risk sentiment at the open, with Treasury yields likely to edge lower and the dollar facing some pressure. The inflation print gives the Fed more flexibility, but does not by itself guarantee near-term rate cuts.

The U.S.-China tariff truce is a clear positive for U.S. manufacturing, tech, and autos, as evidenced by Tesla ’s rapid move to resume Chinese component imports23. The 90-day tariff reduction and China’s commitment to open its market should ease supply chain friction and support equities with China exposure2. However, Japanese officials are concerned about being deprioritized in U.S. trade talks, which could affect Japanese exporters and U.S.-Japan trade flows20.

AI and tech remain market drivers: U.S. chipmakers and cloud providers (Nvidia , AMD , Amazon , Qualcomm) landed major Saudi contracts, boosted by relaxed export controls5. Foxconn’s strong Q1 on AI server demand highlights global infrastructure buildout, but its cautious full-year view reflects ongoing tariff and FX headwinds11. Sony ’s record profit and buyback offer some support, but its outlook is weighed down by a $6.8B tariff hit13.

Commodities are under pressure, with WTI crude at $60—below U.S. shale break-even levels—raising questions about domestic energy sector profitability4. The EU’s new Russia sanctions and France’s push for a 500% tariff on Russian oil could further disrupt global flows and add volatility617. Meanwhile, global EV sales are robust, led by China and Europe, but U.S. EV demand is lagging, and Tesla is losing share to BYD12.

Crypto and IPO sentiment remain strong: eToro ’s successful Nasdaq debut and large institutional ETH buying (over $560M) amid a 44% ETH rally point to renewed risk appetite910. On the policy front, the proposed $700B Medicaid cut could become a headline risk for healthcare and broader markets if political tensions escalate16.