Last week a stronger-than-expected April jobs report showed that fears of an imminent downturn in the US labor market have been misplaced. That’s in addition to both the S&P 500 and Nasdaq hitting intraday and closing records last Friday. This week, an important inflation report and President Trump’s trip to China are in focus. Here’s what’s happening…
- Q1 earnings keep rolling out, with more than 1,200 companies reporting this week. This morning, numbers are due from Nu Holdings, Sea Limited, JD.com, Honda Motor, and Venture Holding, followed Wednesday by Cisco Systems, Alibaba, Sony, and Tower Semiconductor. Thursday earnings are expected from Applied Materials, Brookfield Corporation, Viking Holdings, and Credicorp, followed by a relatively quiet Friday. *
- The CPI (Consumer Price Index) for April was released this morning, and shows inflation ticking up again, rising 3.8% year over year, with energy doing most of the heavy lifting. Gas prices surged nearly 28%, and that ripple effect showed up everywhere from airfares (up 20%) to grocery staples. Even core inflation, which strips out food and energy, came in a bit warmer than expected at 2.8%. Bottom line: higher fuel costs are keeping overall prices sticky, and households are still feeling the squeeze. **
- President Trump’s first visit to China in eight years this Thursday and Friday is set to draw plenty of market attention. With the current trade truce expiring in November 2026, the meeting is a key chance to sketch out what a longer‑term trade relationship might look like. Geopolitics will also feature prominently. Washington is urging Beijing to lean on Tehran to help reopen the Strait of Hormuz, while Taiwan remains a sensitive flashpoint, with China calling it the biggest risk to U.S.‑China relations. Any surprise shifts on Taiwan, or signs of renewed friction on trade, could quickly put markets back on edge. ***
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