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  • CPI Comes in Cool at 2.3%—What that Means for Markets

CPI Comes in Cool at 2.3%—What that Means for Markets

✅ And Coinbase gets even better news than last week

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📰 Market Headlines

Global stocks continued to rocket on Monday after the US and China announced a temporary pause in their trade dispute.

  • The S&P 500 soared nearly 3.3%, the Dow Jones gained 2.8%, and the Nasdaq catapulted 4.3%.

  • The Magnificent Seven added $837 billion in market cap. Amazon surged 8.1%, Meta 7.9%, Tesla 6.8%, and Apple 6.3%. Nvidia climbed 5.4%, pushing near a $3 trillion valuation.

Inflation was lower than predicted in today’s CPI report for April at 2.3% vs 2.4% expected. Here are three things you need to know:

  1. In spite of the trade war, there has been no inflation shock—in fact, it’s decreased for the third month in a row, surprisingly unaffected by tariffs.

  2. Tariff policy will likely continue strong as the White House (and the rest of the world) sees that it can enforce tariffs without cranking US inflation up.

  3. We’re expecting market momentum from the CPI announcement, but only until the next big piece of news drops. Our eyes are on Trump’s trip to the Middle East and his possible plans to talk with President Xi Jinping of China after that.

Coinbase shares jumped 9% as the company was added to the S&P 500. Meanwhile, the SEC chair stated he’s planning to create “clear rules” for cryptocurrency issuance and trading—guidance the industry has sorely needed. COIN shares are still down 24% this year as of writing, even with the news of its $2.9 billion Deribit acquisition last week and S&P 500 inclusion.

The AI industry is moving and shaking as OpenAI restructures to appease major investors, Perplexity AI raises $500 million at a $14 billion valuation, and the White House's AI and crypto czar David Sacks seems to want to sell US-made AI chips to Saudi Arabia. At any rate, it’s certainly hard to imagine the AI industry getting any smaller from here, and the US seems intent on capturing the biggest piece of the pie.

😱 Fear and Greed Index

🧠 Make yourself heard

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⚔️ Trade Wars

  • Sources said US companies could find it easier to secure rare earth permits from China as a result of the trade truce.

  • US customs duties hit a record $16.3 billion in April, up 86% from March and more than double April 2024.

  • USTR finalized new maritime trade actions against China, adding port fees on China-linked ships, proposing up to 100% tariffs on cranes and containers.

  • Bangladesh received a formal request from USTR to submit a proposal for reciprocal tariff talks after expanding its duty-free list for US goods.

🥇 AltIndex’s Top Stock Picks

Here are the stocks with the highest AltIndex AI Score, which assesses a stock's mid-term market outperformance potential (6+ months) by analyzing financials as well as alternative data like job postings, web traffic, downloads, and social media trends.

📊 Alternative Investing News

  • Blackstone Infrastructure Partners pursued a deal to acquire TXNM Energy after other bidders dropped out.

  • Bain Capital launched a buyout of Nissin Corp. in a ¥112 billion ($756 million) deal, offering ¥8,100 per share at a 51% premium.

  • The Los Angeles Chargers opened talks with Arctos Partners to sell a minority stake after NFL rule changes.

🤖 AI/Future/Tech News

  • Google launched the AI Futures Fund and backed early-stage startups with capital, Gemini access, and in-house support.

  • Apexon teamed up with Dataiku to help banks and healthcare firms build explainable, compliant AI.

  • Kodenyx AI debuted a readiness workshop for B2B founders to map automation potential using its “Drip Matrix” tool.

🪙 Crypto

  • SEC Chair Paul Atkins unveiled plans to overhaul crypto policy, promised a rational framework for token issuance, custody, and trading, and ended regulation by enforcement.

  • Eric Trump’s Bitcoin mining firm, American Bitcoin, announced its public debut on Nasdaq as ABTC after merging with Gryphon Digital Mining.

  • Corporate mentions of "tariffs" during earnings calls have soared since President Trump’s election, with the consumer and industrials sectors seeing the sharpest rise.

  • A Harris poll found 60% of Americans saw the economy derail major life goals, with homeownership hardest hit, tariffs ranked as the top 2025 financial threat, and one-third delaying children due to cost concerns.

  • Goldman Sachs Group Inc. has raised its S&P 500 forecast for the next three months—but only by less than 1%, signaling negligible optimism.

🌍 International Markets

  1. 🇦🇷 Argentina’s credit rating rose to CCC+ as Fitch cited improved multilateral funding access and the rollback of currency controls.

  2. 🇮🇳🇬🇧 The UK signed a trade deal with India, cutting tariffs on 64% of UK exports and projecting a 59% export boost to India by 2040.

  3. 🇧🇩 Bangladesh Bank raised the medical remittance cap to $15,000 to cover rising costs and curb informal transfer use.

  4. 🇵🇭 Detained at The Hague, Rodrigo Duterte won back his mayor seat in Davao as his family swept key posts in a heated feud with the Marcos camp.

🎤 What you said last time

What you had to say about it:

“Trump's a Tariff Truther... he firmly believes he's smarter than everyone else, and won't be dissuaded from saving us all by kicking the economy in the nuts, repeatedly. ”

🚚 Market movers

  • Amazon struck a new deal with FedEx to fill delivery gaps after UPS cut back.

  • McDonald’s plans to hire 375,000 workers this summer, its biggest seasonal push since 2020.

  • A new FAA task force with Verizon and L3Harris was launched to address repeated telecom failures at Newark Airport that caused hundreds of flight delays.

  • Roche planned new facilities for obesity drugs in North Carolina and diagnostics in Indianapolis, pledging $50 billion in US investments and 12,000 new jobs.

  • Equinor threatened to cancel its Empire Wind project as the Trump administration's halt left 11 vessels idle, costing $50 million per week.

📊 Earnings this week

  • Chegg saw revenue fall 30% and subscribers drop 31% in Q1, alongside a net loss and 248 layoffs.

  • Fox beat Q3 estimates with revenue up 26.8% and EPS of 1.10, driven by a 77% surge in television ad sales; shares were flat.

  • Hertz missed Q1 expectations with a 13% revenue drop and a wider-than-expected loss; shares dipped 1.56% after hours.

  • Monday.com posted an 80% jump in EPS and 30% revenue growth in Q1, topping forecasts; shares rose 5%.

  • Plug Power met Q1 revenue guidance but posted a 29.5% year-over-year decline; shares slid 3.8% in after-hours trading.

  • Topgolf reported a 4.5% revenue decline in Q1 but beat on EBITDA and operating income; same-venue sales at Topgolf fell 12%.

🧠 Miscellanea

  • A Soviet space probe launched in 1972 tumbled into the Indian Ocean after more than 50 years in orbit.

  • A Dutch team says the cosmos will fizzle out in 10⁷⁸ years, about 10³² years sooner than previously thought.

  • Reddit users are reporting a disturbing trend of ChatGPT-induced psychosis, with some convinced the AI is sentient or has revealed divine missions.

📺 What to watch today

That’s all for today. Did I miss anything? Smash the reply button to let me know.

Cheers,
Brandon with Stefan & Wyatt

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