CNBC — 2026-05-14#

Lead Story#

The high-stakes summit between President Donald Trump and Chinese President Xi Jinping in Beijing takes center stage, as the two superpowers navigate flashpoints over AI, tariffs, and the reopening of the Strait of Hormuz. U.S. Treasury Secretary Scott Bessent confirmed plans for a joint AI safety protocol, while reports indicate the U.S. has cleared the sale of Nvidia H200 chips to major Chinese tech firms to maintain leverage.

Markets & Economics#

The Dow makes it back to 50,000 and the S&P 500 closed above 7,500 for the first time, fueled by strong corporate fundamentals and a broadening tech rally. On the economic front, Bessent sees ‘substantial disinflation’ ahead as Warsh takes over the Fed, brushing off recent hot wholesale inflation data as a transient supply shock caused by the Iran conflict. However, the Bond market believes Fed behind the curve on inflation as Warsh takes over, signaling that the incoming central bank chair may need to adopt tighter monetary policy to curb sticky price pressures. Meanwhile, the U.S. economy showed continued consumer resilience, with retail sales rising 0.5% in April, though the gain was largely driven by surging energy costs.

Business & Earnings#

Cerebras almost doubles in Nasdaq debut, topping $100 billion market cap after blockbuster IPO as the AI chipmaker priced its offering at $185 per share and closed up 68% at a $95 billion valuation. Cisco CEO says tech is entering a ’networking supercycle’ as stock pops 14% on strong AI demand following raised hyperscaler guidance and the announcement of a 5% workforce reduction. In aerospace, China will order 200 Boeing jets, Trump tells Fox News, though Boeing shares fell 3.8% as Wall Street analysts had anticipated a much larger order of up to 500 aircraft. Versant reports first-quarter revenue decline, with bright spots in platforms and licensing, pushing the media spin-off’s stock up 10% after it highlighted strong digital growth despite linear TV pressure.

Investing & Commentary#

Cramer urges investors to be more selective in the AI frenzy, explicitly advising investors against chasing Cerebras at its current valuation while remaining bullish on established winners like Nvidia and Cisco. Concurrently, Some short sellers are seeing opportunity in this tech mania. How they’re spotting fake AI stocks highlights how hedge funds are targeting companies that abruptly rebrand or pivot business models to artificially capitalize on the AI boom.

Also Worth Watching#

• U.S., EU lawmakers pledge European scrutiny of Paramount’s WBD deal: Lawmakers warned Paramount Skydance CEO David Ellison that the proposed acquisition of Warner Bros. Discovery will face rigorous regulatory review despite earlier shareholder approval.
• UFC’s Dana White urges Trump to reverse gambling tax law. His letter moved the prediction market: Dana White pleaded with President Trump to undo a 90% cap on gambling loss deductions, driving up the odds of a reversal on the Kalshi prediction platform.
• U.S. Border Patrol Chief Mike Banks resigns: Chief Banks stepped down amid ongoing controversy and a partial DHS shutdown over immigration enforcement funding.
• Americans still feel bad about the economy. When will it get better?: Consumer sentiment hit all-time lows in May as Americans remain battered by cumulative inflation and geopolitical shocks.