CNBC — 2026-05-13#

Lead Story#

Wholesale inflation came in blazing hot for April just as Kevin Warsh was confirmed as the new Federal Reserve chair in a historically tight Senate vote. The 6% annual jump in producer prices complicates the path forward for the central bank and sends a clear signal that the inflation fight is far from over.

Markets & Economics#

The Producer Price Index accelerated by a seasonally adjusted 1.4% in April, far exceeding the 0.5% consensus estimate. This sent the 10-year Treasury yield up to 4.49%, its highest level since July. In “Wholesale inflation jumps 6% in April on annual basis, biggest increase since 2022”, analysts noted that energy costs are driving the pain, a sentiment echoed in “This $90-to-$120 oil environment is probably with us for quite some time” regarding the ongoing Iran conflict. Consequently, “Fmr. CEA Chair Jared Bernstein on if there’s a ‘potential persistence problem’ with inflation” and “Fed’s Collins: Sees some scenario where the Fed could be tightening” highlighted the growing reality that rates will remain elevated. Despite the macroeconomic headwinds, the S&P 500 and Nasdaq Composite both notched new all-time highs, powered largely by the semiconductor and AI trade.

Business & Earnings#

Cisco shares skyrocketed 17% after the networking giant reported a surge in AI infrastructure orders totaling $5.3 billion and announced a 4,000-person headcount reduction. Options traders analyzed the move in “Bullish action into Cisco earnings: Here’s what options traders are looking at”. Meanwhile, Cerebras priced its highly anticipated IPO above the expected range at $185 per share, raising $5.55 billion and securing a $56.4 billion valuation, as previewed in “Cerebras set to go public tomorrow: Here’s what to expect”. Elsewhere, SoftBank posted a staggering $46 billion annual gain at its Vision Fund, almost entirely driven by its massive stake in OpenAI, detailed in “SoftBank books a $45 billion investment gain from OpenAI”. In logistics, FedEx CEO Raj Subramaniam downplayed the competitive threat of Amazon’s new supply chain offering during his “FedEx CEO responds to Amazon Supply Chain Services announcement” interview.

Investing & Commentary#

For traders looking to play the recent consolidation in gold, Michael Khouw mapped out a June $395/$445/$480 call spread risk reversal in “How gold can fit into an options trader’s portfolio as inflation concerns rise”. The strategy weaponizes call skew to capture upside while mitigating time decay. Pushing back against bubble fears, Peter Mallouk argued in “Market growth is because of expected earnings not a speculative bubble” that the ongoing AI-driven market rally is structurally sound and supported by fundamental demand.

Also Worth Watching#

• What to expect from the upcoming Trump-Xi summit: President Trump arrived in Beijing accompanied by tech titans like Elon Musk and Nvidia’s Jensen Huang to discuss tariffs, rare earths, and AI.
• Microsoft CEO Satya Nadella testifies in OpenAI case: Courtroom testimony revealed Microsoft’s early fears of becoming too dependent on OpenAI’s technology stack.
• UK treating leadership ‘like some kind of game show’: O’Neill: Former Treasury minister Jim O’Neill criticized the UK’s political volatility after Prime Minister Keir Starmer faced calls to resign, triggering a massive gilt sell-off.
• Thor Equities CEO argues why layoffs make him bullish on office real estate: Joe Sitt discussed how tech sector job cuts are paradoxically creating new dynamics in commercial real estate and data center buildouts.
• High gas prices hurting beer sales at convenience stores and gas stations: Surging fuel costs are pressuring discretionary consumer spending, leading to a noticeable drop in U.S. beer volumes.