Squawk on the Street Hot Inflation Day 2, Trump-Xi Summit, Nvidia CEO Huang Goes to China 5/13/26
17 snips
May 13, 2026 Markets react to a hotter-than-expected April PPI print and the ripple effects on yields and inflation expectations. High-stakes Beijing talks highlight CEOs flying with a presidential visit and potential trade or tech announcements. Semiconductors and AI names dominate market leadership while IPOs, oil price moves and tech earnings add extra drama.
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Break Evens Show Regime Change In Expectations
- Inflation expectations are moving higher with 10-year break-evens at a three-year high and five-year break-evens the highest in 20 years.
- Michael Santoli notes that this reflects a regime change from persistent low inflation to renewed price pressure.
Market Breadth Hides Deep Consumer Weakness
- Equity valuations are being driven unevenly: semiconductors rally while consumer cyclicals lag significantly.
- Michael Santoli highlights a market where index gains mask heavy losses among equal-weighted consumer stocks down 12–13% from highs.
Crowded AI Trade Fuels Market Dynamics
- Wall Street sentiment is concentrated in an ‘own AI’ trade driven by crowded positioning and limited downside until growth or inflation upends it.
- Carl Quintanilla cites a Wells Fargo note saying: don't fight the tape, own AI until a macro shock arrives.