Ten Stories Moving the Market

Ten Stories Moving the Market:

Advanced Micro Devices the leading challenger to Nvidia in AI computing chips, said a flood of data center spending bolstered its sales forecast; the company forecast second-quarter revenue of $11.2 billion compared to the expectation for $10.5 billion – Bloomberg. (Why you should care – the company said the data center CPU market could grow to $120 billion by 2030 compared to prior guidance of $100 billion)

U.S. President Donald Trump ​said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing "great progress" toward a comprehensive agreement with Iran – Reuters. (Why you should care - Iranian Foreign Minister Abbas Araqchi has said that peace talks were still progressing with Pakistan's mediation)

Iran’s Foreign Minister Abbas Araghchi is traveling to Beijing for talks, marking the diplomat’s first visit to China since U.S. and Israeli strikes boosted regional tension – Bloomberg. (Why you should care – Beijing is likely seeking a way to end the conflict and restore the flow of energy supplies)

Super Micro Computer forecast fourth-quarter revenue and adjusted profit above Wall Street estimates, ​banking on robust demand for its artificial intelligence servers; Super Micro projected fourth-quarter ​revenue in the range of $11 billion to $12.5 billion, compared with the consensus expectation for $11.07 billion – Reuters. (Why you should care – the quarterly earnings and guidance highlight the strength compute capacity)

International Business Machines CEO Arvind Krishna says maximizing returns on investment in artificial intelligence requires a fundamental restructuring of business workflows rather than just adopting new technology; he use of AI within a company typically evolves from the individual contributor to small teams, cross-functional groups and ultimately the entire organization – WSJ. (Why you should care – Krishna said processes need to be redesigned to allow AI to scale across enterprises)

Anthropic has committed to spend $200 billion with Google Cloud over five years as part of a recent agreement, according to The ​Information – Reuters. (Why you should care – such a contract suggests demand for compute power is unlikely to ease in the near term)

Apple will let users choose from a range of outside artificial intelligence services to power features across its software, building on a strategy to turn its devices into a comprehensive AI platform – Bloomberg. (Why you should care – the ability for flexibility across LLMs is likely to increase the appeal of Apple products)

U.S. job openings slipped in March amid a decline in professional and business services, but a surge in hiring ​to a more than two-year high suggested the labor market was regaining its footing after struggling in recent months – Reuters. (Why you should care – the data imply the Federal Reserve is unlikely to raise interest rates at the next meeting due to a weak labor market)

Billionaire Ken Griffin amplified his criticism of New York City Mayor Zohran Mamdani and suggested his investing firm Citadel would “double down” on Miami being the place for growth instead of Manhattan; the mayor recently appeared in a video in front of a property Griffin purchased at 220 Central Park South, discussed annual fees placed on luxury properties – WSJ. (Why you should care – an exodus out of Manhattan by financial firms and professionals could weigh on real estate valuations)

Anthropic unveiled a set of new artificial intelligence agents designed to handle a broader mix of financial services tasks, part of the company’s push to win over Wall Street; the new tools are aimed at professionals across banking, insurance, asset management and financial technology – Bloomberg. (Why you should care – the company continues to promote new product offerings as it plans for an IPO later this year)

Economic Calendar:

Earnings: ARM, APP, COHR, CVS, DIS, FTNT, JCI, MAR, MET, NVO, UBER, WBD

Markets in Japan are Closed

China – Caixin China Services, Composite PMI for April

France – Industrial Production for March (2:45 a.m.)

Eurozone – HCOB Eurozone Services, Composite PMI (Final) for April (4:00 a.m.)

U.K. – S&P Global U.K. Services, Composite PMI (Final) for April (4:30 a.m.)

U.S. - MBA Mortgage Applications (7 a.m.)

U.S. – ADP Employment Change for April (8:15 a.m.)

U.S. - Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)

ECB’s Lane (Chief Economist) Speaks (11:30 a.m.)

Fed’s Goolsbee (Chicago, Non-voter) Speaks (1:00 p.m.)

BoC’s Macklem (Governor) Speaks (4:15 p.m.)