Asia Markets Mixed as Trump Lands in Beijing for High-Stakes Xi Meeting; Kevin Warsh Confirmed as Next Fed Chair
14 May 2026
Today in Brief
Asia-Pacific markets traded mixed Thursday as investors looked to the high-stakes Trump-Xi summit in Beijing for clues on the future of U.S.-China ties and global trade. The S&P 500 rose 0.58% to a fresh record of 7,444.25, driven by tech enthusiasm even as another hotter-than-expected inflation report showed U.S. wholesale prices accelerating to their fastest pace since 2022. Gold slid below $4,700 for the third straight session as investors fully ruled out a Fed rate cut this year, while WTI crude steadied around $101 per barrel.
Kevin Warsh was confirmed as the next Federal Reserve chair in the most divisive vote ever for the role, taking over from Jerome Powell. Xi asked Trump whether the two nations could avoid the "Thucydides Trap" at their summit. Cerebras priced its IPO at $185 per share above the expected range, Alibaba jumped 8% on bullish AI tone, TSMC forecast the global chip market to hit $1.5 trillion by 2030, and solar stocks surged following strong Nextpower earnings.
Asia Markets
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Asia-Pacific stocks trade mixed as Trump lands in Beijing for high-stakes Xi meeting
Asia-Pacific markets traded mixed Thursday as investors look to a high-stakes meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping for clues on the future of U.S.-China ties and global trade. Trump landed in Beijing Wednesday for the closely watched summit, accompanied by a group of U.S. executives, including Tesla CEO Elon Musk and Nvidia boss Jensen Huang. Japan's Nikkei 225 rose 0.27%, while the Topix slid 0.23%. South Korea's Kospi added 0.38%, while the small-cap Kosdaq climbed 1.31%. Samsung shares rose as much as 5.46%, notching a fresh record high.
U.S. Markets
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S&P 500 rises to another record on the back of tech even as majority of stocks close lower
The S&P 500 rose to a new all-time high on Wednesday as traders' enthusiasm for the technology trade overshadowed yet another hotter-than-expected inflation report. The broad market index rose 0.58% to 7,444.25, and the tech-heavy Nasdaq added 1.2% to end at 26,402.34. Both hit fresh intraday and closing records. The Dow Jones Industrial Average shed 67.36 points, or 0.14%, ending at 49,693.20.
Commodities
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Gold weakened below $4,700 an ounce on Thursday, sliding for the third straight session
Gold weakened below $4,700 an ounce on Thursday, sliding for the third straight session as rising US inflation reinforced expectations that the Federal Reserve could keep interest rates higher for longer or even hike them. Data released Wednesday showed US wholesale inflation accelerated in April to its fastest pace since 2022, fuelled by higher trade and energy costs linked to the Iran war. The report followed Tuesday's data showing consumer inflation climbed to 3.8% last month, the highest reading since May 2023. Investors have now fully ruled out a Fed rate cut this year, while increasingly expect a greater likelihood of another rate hike before year-end.
Energy
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WTI crude futures steadied around $101 per barrel on Thursday, pausing their recent advance
WTI crude futures steadied around $101 per barrel on Thursday, pausing their recent advance as investors shifted focus to the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. The leaders are expected to center discussions on trade rather than tensions surrounding the Iran war, although Washington recently intensified pressure on Tehran by threatening banks and imposing fresh sanctions on entities involved in Iranian oil sales to China, the largest importer of its crude. Meanwhile, the US Energy Information Administration reported that crude oil and fuel flows through the Strait of Hormuz declined by nearly 6 million barrels per day in the first quarter after the Middle East conflict erupted in late February. The IEA also warned that the global oil market is likely to remain heavily undersupplied until October even if the conflict ends next month, while Saudi Arabia informed OPEC that its oil output fell to the lowest level since 1990.
Diplomacy
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Xi asks Trump if U.S. and China can avoid 'Thucydides Trap' at high-stakes summit
U.S. President Donald Trump met his Chinese counterpart Xi Jinping in Beijing on Thursday morning, kickstarting a high-stakes summit that is expected to cover trade, tariffs, Taiwan and Iran, and runs through Friday. The relationship between the two countries is going to be "better than ever before," Trump told Xi in his opening remarks, according to official broadcast footage. Trump, who also visited China in 2017 in his first term, said the two leaders have known each other personally for longer than any other U.S. or Chinese president. Speaking just ahead of Trump, Xi noted the global attention on the meeting, and said a major question for the two countries was whether they could avoid the "Thucydides Trap," according to an official English translation of his Chinese remarks broadcast by CCTV.
Politics
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'Bond markets on edge' as King Charles sets out fragile UK government's agenda
Britain's King Charles III set out the agenda of a fragile U.K. government on Wednesday after Prime Minister Keir Starmer faced down calls for his resignation that sparked heavy selling pressure on gilts in the previous session. The State Opening of Parliament and King's Speech, a grand affair in which the monarch presents the government's legislative agenda for the next parliamentary period, took place after Starmer's political leadership remained under threat following the political fallout of the ruling Labour Party's poor performance in local elections last week. Starmer appears to have seen off any immediate leadership challenge for now, and will hope that today's pomp, pageantry and policy agenda can shift attention away from the current crisis.
Economy
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Kevin Warsh wins Senate confirmation as the next Federal Reserve chair
Kevin Warsh was confirmed Wednesday as the next Federal Reserve chair, taking over the central bank at a time when President Donald Trump is pushing for lower interest rates even as fresh inflation data complicates the case for cuts. In the most divisive vote ever for a Fed chair, Warsh, 56, won confirmation to take over for Jerome Powell, who has served in the top leadership position since 2018 and whose term will expire Friday. The Senate voted 54-45 to confirm Warsh, ending a monthslong saga that began in the summer of 2025 and included an extensive search for Powell's successor. The vote was almost completely along party lines, with only Pennsylvania Democrat Sen. John Fetterman crossing over to vote for Warsh, who becomes the 11th Fed chair of the modern banking era. Powell will stay on at the Fed as he has two years left in his term as governor.
Geopolitics
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Auto-state lawmakers seek to keep certain Chinese vehicles out of U.S. as Trump heads to Beijing
Bipartisan lawmakers from Michigan on Tuesday announced legislation that would ban Chinese-made "connected vehicles," software and hardware from the U.S. market, ahead of President Donald Trump's meeting this week with Chinese President Xi Jinping. Rep. John Moolenaar, R-Mich., chairman of the House Select Committee on China, and Rep. Debbie Dingell, D-Mich., rolled out the "Connected Vehicle Security Act," closely mirroring bipartisan Senate legislation from Sens. Elissa Slotkin, D-Mich., and Bernie Moreno, R-Ohio, that would codify Biden-era connected vehicle restrictions over national security and data collection concerns. Connected vehicles have internet access and wireless connectivity with other cars or trucks, technology that supporters say can enhance roadway safety.
Technology
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Cerebras prices IPO above expected range, as Wall Street braces for AI tsunami
Cerebras Systems, a maker of artificial intelligence chips, priced its IPO at $185 a share, above the expected range, as investors gear up for what's expected to be a very busy year for new AI offerings. The IPO reeled in $5.55 billion for Cerebras, which sold 30 million shares, according to a statement on Wednesday. Underwriters have the option to purchase an additional 4.5 million shares. The company is hitting the market during a silicon renaissance. Intel, Advanced Micro Devices and memory maker Micron are each up more than 80% in the past month, and have notched much more dramatic gains over the past year as investors spread their chip bets from Nvidia to the wider universe of semiconductor companies now benefiting from the AI boom.
Corporate
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Alibaba jumps 8% as it strikes bullish tone on AI investments, even as profit plunges
Alibaba shares jumped on Wednesday as investors liked the e-commerce giant's bullish tone on AI, even as it reported a plunge in its core profit for the March quarter. Following the release of Alibaba's earnings, the stock fell by as much as 4% in pre-market trade. But it rallied after the open as executives defended the company's investments, telling analysts that they will eventually pay off. It was 7.5% up as of 11.33 a.m. ET. "We see the ROI (return on investment) on this investment in the next 3-to-5 years as being extremely clear," Wu said on the earnings call on Wednesday. The stock rally came even after Alibaba said its adjusted earnings before interest, taxes, and amortization (EBITA), a measure of the company's underlying profitability, came in at 5.1 billion Chinese yuan ($750.9 million), an 84% year-on-year drop, as it continues to invest in technology and its e-commerce business.
Semiconductors
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TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth
TSMC, the world's largest contract chipmaker, expects the global semiconductor market to exceed $1.5 trillion by 2030, topping its previous forecast of $1 trillion, according to its presentation materials ahead of a tech symposium on Thursday. AI and high-performance computing are expected to account for 55% of the $1.5 trillion market, followed by smartphones with 20%, and automotive applications with 10%, according to TSMC. TSMC said it has been expanding capacity at a faster pace in 2025 and 2026 and plans to build nine phases of wafer fabs and advanced packaging facilities in 2026. The chipmaker is projected to ramp up capacity for its most advanced 2-nanometer and next generation A16 chips, with a compounded annual growth rate (CAGR) of 70% from 2026 to 2028.
Energy
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Solar stocks surge as Nextpower earnings lift sector
Enphase Energy Inc shares rose 12% Wednesday, while SolarEdge Technologies Inc climbed 6% and First Solar Inc gained 3%, following a strong earnings report from solar technology peer Nextpower that lifted sentiment across the sector. Nextpower shares jumped 13.6% to $140.81 after the company reported fourth quarter fiscal 2026 results that exceeded Wall Street expectations. The solar energy technology company posted adjusted diluted earnings per share of $1.05, beating the analyst consensus of $0.93. Quarterly revenue reached $881 million, surpassing the $827 million consensus estimate. Revenue for the quarter ended March 31, 2026 also marked growth from the prior year period. Full-year fiscal 2026 revenue totalled $3.56 billion, up 20% YoY.
