Market Commentary: Wednesday 13th May

Stocks swung higher as dip buyers returned to chipmakers, with investors continuing to back the AI trade despite the backdrop of inflation and geopolitical risks. Asian equities rose 0.5%, while South Korea reversed early losses to gain 2.4%, led by SK Hynix and Samsung. US and European futures also advanced after the White House said Nvidia CEO Jensen Huang would join President Trump’s trip to China, lifting optimism around trade and technology ties.

Bonds remained under pressure after stronger-than-expected US inflation data reinforced expectations that policy may stay tighter for longer. Core CPI rose more than forecast, and headline inflation reached 3.8%, driven by higher gasoline and grocery costs. Japan’s long-dated yields climbed to their highest level since 1997, while US yields held elevated as markets increasingly question whether the Fed may need to raise rates next year rather than ease.

On the data front today, we have French CPI shortly, US mortgage applications at noon, followed by US PPI data in the early afternoon.

• S&P 500 futures +0.2%
• Nasdaq 100 futures +0.4%
• US 10-year yield unchanged ~4.46%
• Bitcoin +0.5% to $81,041
• Gold −0.3% to $4,699
• WTI −1.5% to $100.64

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