Market Summary - May 13, 2026
US Market Overview
The US stock market opened slightly lower but has since recovered, with the S&P 500 up by 0.2% and the NASDAQ Composite gaining 0.6%. This shift in sentiment comes amidst renewed inflation concerns, particularly following a Producer Price Index (PPI) reading that exceeded expectations.
Inflation Concerns
Today's PPI inflation data revealed a year-on-year increase of 6%, the highest since December 2022, significantly above the anticipated 4.9%. Notably, the core measure, which excludes volatile items like food and energy, also showed substantial increases, particularly in the aviation sector where airfares surged by 3% month-over-month and 15% year-over-year.
Key Economic Events
US President's visit to Beijing is a focal point, with expectations surrounding trade relations and updates on the US-Iran conflict. The closure of the Strait of Hormuz poses long-term risks for China, which relies heavily on Middle Eastern oil imports.
Additionally, oil and petrol inventory data released at 3:30 PM indicated a more significant decline than expected, with inventories down by 4.3 million barrels.
Market Predictions
Investment bank Morgan Stanley has expressed optimism regarding the broader market outlook, raising its price forecasts for the S&P index for the end of 2026.
Company News
- Ford (F.US): Reported Q1 2026 results with an EPS of $0.66, significantly above expectations. Shares rose over 5% following the announcement.
- Alibaba (BABA.US): Despite disappointing revenue growth due to AI investments, shares increased by over 6% amid positive sentiment from the Xi-Trump meeting.
- Quantum Computing (QUBT.US): Despite strong revenue growth, concerns over cost management led to a share price drop of over 6%.
- Arteris (AIP.US): Shares rose over 7% after reporting nearly 40% year-on-year revenue growth, with a positive outlook for 2026.