Weekly Outlook | Powell's term ends, Warsh takes over; Trump may visit China, with CPI data from both China and the US to be released; Earnings reports from Circle, Tencent, Alibaba, JD.com, and SMIC are forthcoming; IPOs of Ledo Robotics, Jitai Technolog

In March this year, according to CCTV News, when asked about US President Trump's statement that he would visit China in mid-May, Foreign Ministry Spokesperson Lin Jian responded during a regular press conference on March 26, noting that head-of-state diplomacy plays an irreplaceable strategic role in guiding Sino-US relations, and that both sides were in communication regarding President Trump's visit. On May 7, US media reported that the US government had invited CEOs of major companies such as NVIDIA, Apple, Exxon Mobil, and Boeing to join the trip.

Futu NewsMay 10 12:46

The Return of History: Deutsche Bank on Gold, the US Dollar, and the Future of Currency

Deutsche Bank believes that the unipolar structure, free trade, and low inflation conditions that have driven the dominance of the US dollar as a reserve currency have reversed. The share of the US dollar in global central bank reserves has fallen from over 60% to 40%, while the share of gold has nearly doubled to 30% in the past four years. If emerging markets increase their target allocation for gold to 40%, gold prices could rise to $8,000 within five years. Gold may signal the emergence of a new monetary order independent of the dollar system.

wallstreetcnMay 10 14:25

Far exceeding expectations! In the just-concluded earnings season, U.S. stocks performed astonishingly well.

U.S. corporate profits are surging with a strength rarely seen in two decades, surpassing Wall Street expectations. According to data from Bloomberg Industry Research on May 8, the year-on-year increase in earnings for S&P 500 Index components in the first quarter reached an impressive 27%, more than double analysts' prior forecast of approximately 12%. This marks the fastest growth rate since 2004, excluding periods of significant economic recovery following major shocks. The "Magnificent Seven" technology companies are projected to see a 57% leap in first-quarter profits, further validating the profit realization capabilities of AI investments. Geopolitical tensions, once considered the biggest risk to U.S. equities, have been alleviated by a robust earnings season, while economic resilience has also eased global concerns about growth.

wallstreetcnMay 10 12:40

BofA's Hartnett: The materials sector will be the next 'bull market darling.'

Bank of America strategist Hartnett pointed out that the materials sector currently accounts for only 2% of the S&P 500's market value, with valuations at a 30-year low. Multiple drivers include geopolitical competition for resources, AI capital expenditures, defense expansion, and the U.S. housing shortage. He proposed a "bubble barbell" strategy, recommending simultaneous long positions in AI chips and oversold cyclical assets, with the materials sector being the optimal pairing.

wallstreetcnMay 10 12:09

Fed Official: If AI succeeds, there will be interest rate hikes; if AI fails, it will lead to stagflation.

Aubhik Goolsbee, President of the Federal Reserve Bank of Chicago, warned at a conference hosted by the Hoover Institution at Stanford University that widespread market expectations regarding AI productivity could push up interest rates and trigger stagflation if the anticipated technological dividends fail to materialize. He noted that when such expectations are fully priced in, businesses and households may frontload consumption and investment, leading to economic overheating.

wallstreetcnMay 10 10:22

The Federal Reserve: Redemption risks in private credit are "manageable."

The financial stability report released by the Federal Reserve on Friday indicated that the scale of private credit redemptions in the first quarter of 2026 falls within a "manageable" range. However, the combination of fund redemptions and negative market sentiment may lead to pressure on borrowers with weaker credit profiles due to a contraction in credit supply. The survey also showed increased market attention to risks associated with geopolitical factors and artificial intelligence.

wallstreetcnMay 9 06:46