Most Important News

1. US April Retail Sales and Jobless Claims Update;
2. Waller Era" Begins at Fed as US Treasury Yields Near 5%;
3. Cerebras Set for Largest IPO of the Year at $185 per Share;
4.  NVDA Cap Hits $5.5T as US Okays H200 Sales to China;

Stock futures were higher on Thursday, with the Dow Jones Industrial Average set to retake 50,000 after strong earnings from Cisco Systems and following a key meeting between the US and China.

As of 03:45 PM Riyadh Time, Dow Jones Industrial Average futures popped 420 points, or 0.84%. S&P 500 futures climbed 0.29%, while Nasdaq-100 futures traded up 0.12%.

Cisco Systems, Inc.(CSCO.US) jumped 15% in premarket trading following better-than-expected Q3 results and job cut plans. Boeing Co. ($BOEING BA$) also edged up on hopes for US-China trade progress.

The S&P 500 and Nasdaq hit records on Wednesday amid tech strength. Amazon.com, Inc.(AMZN.US) and NVIDIA Corporation(NVDA.US) have surged 30% and 25% over two months, supporting the broader rally. Oil prices remained elevated due to Middle East tensions.

As of 03:46 PM Riyadh Time, top pre-market movements are as follows:

US April Retail Sales and Jobless Claims Update 

April retail sales in the US rose by 0.5%, matching expectations but down from the previous 1.7%. Initial jobless claims for the week ending May 9 reached 211,000, slightly above the anticipated 205,000. The prior week's figure was revised from 200,000 to 199,000.

Waller Era" Begins at Fed as US Treasury Yields Near 5%  

The US Senate has narrowly approved Kevin Waller as the new Federal Reserve Chair, succeeding Jerome Powell. Markets are closely watching Waller's policy direction, particularly regarding potential interest rate adjustments amid persistent inflation. Rising rate hike expectations have pushed the 30-year US Treasury yield above 5% for the first time since the 2008 financial crisis, increasing volatility in the bond market and impacting risk appetite in US equities.

BofA Raises AI Infrastructure Market Forecast to $1.7 Trillion by 2030

Bank of America Securities has revised its forecast, predicting the global AI infrastructure market will reach $1.7 trillion by 2030, surpassing previous expectations. NVIDIA Corporation(NVDA.US), Advanced Micro Devices, Inc.(AMD.US), and Broadcom Limited(AVGO.US) are highlighted as top investment picks in AI infrastructure. The report also notes that sectors like optical communication and storage chips will benefit first from increased capital expenditures, with leading companies in these areas expected to exceed market growth expectations.

NVIDIA Rises Nearly 2% Amid Reports of US Approval for H200 Chip Sales to Chinese Firms

The US reportedly approved the sale of Nvidia's NVIDIA Corporation(NVDA.US) H200 chips to 10 Chinese companies, including Alibaba Group Holding Ltd. Sponsored ADR(BABA.US), Tencent, and ByteDance, according to Reuters. Distributors like Lenovo and Foxconn are also allowed to purchase the chips. NVIDIA is set to release its Q1 FY2026 earnings post-market on May 20, with expectations of surpassing forecasts.

Cerebras Set for Largest IPO of the Year at $185 per Share

Cerebras Systems, Inc. Class A(CBRS.US), an AI chip company, is set to go public tonight with an IPO price of $185 per share. The company increased its offering to 30 million shares, aiming to raise approximately $5.55 billion, making it the largest IPO of the year. Post-IPO, Cerebras is expected to have a market value of around $40 billion, with demand reportedly exceeding shares by 20 times.

Cisco Records Q3 FY26 Revenue Up 12%

Cisco Systems, Inc.(CSCO.US) reported record Q3 FY26 revenue of $15.8B, up 12% YoY, driven by 35% order growth and AI infrastructure demand, raising FY26 AI order guidance to $9B. Read in detail>>

Microsoft Evaluates AI Startup Acquisitions

Microsoft Corporation(MSFT.US) is considering acquiring AI startups to diversify its AI operations and reduce reliance on OpenAI. The company has invested over $100 billion in projects with OpenAI. Meanwhile, LinkedIn plans to cut about 5% of its workforce, affecting around 875 positions. Insiders indicate the layoffs aim to enhance core business growth, not due to AI replacements.

Tesla CEO Musk Visits China

Tesla Motors, Inc.(TSLA.US) CEO Elon Musk has arrived in China for a business visit. It is anticipated that he will discuss Tesla's business development and energy storage projects with relevant authorities. Meanwhile, reports indicate that BYD's energy storage shipments are expected to exceed 60 GWh by 2025, leading Tesla by nearly 30%. The global energy storage market is becoming increasingly competitive.

POET and Lumilens Advance Wafer-Level Photonics

POET Technologies(POET.US) and Lumilens have announced a supply agreement to establish a strategic partnership for developing wafer-level photonics integration. This collaboration aims to enhance next-generation AI optical networks by advancing cutting-edge AI infrastructure.