Tuesday's Final Takeaways: Inflation Surges & Possible Development With Global Tensions

• April CPI came in hotter than expected, with a 3.8% year-over-year jump, largely driven by energy costs, and core inflation remains elevated at 2.8%.
• The Senate confirmed Kevin Warsh to a 14-year term as Federal Reserve Governor, with a potential future vote for Fed Chair.
• A South Korean official proposed an A.I. profit tax on companies like Samsung and SK Hynix, leading to a nearly 10% drop in the EWW ETF.
• President Trump's meeting with Xi Jinping is anticipated with low expectations, focusing on managing trade relations and potential Iran negotiations.
• Tomorrow's focus includes April PPI data and earnings reports from Alibaba and Tencent, with investors watching for AI monetization and profit margins amid delivery wars.

The session highlights hotter-than-expected April CPI data, signaling persistent inflation and negative purchasing power. The Senate confirmed Kevin Warsh as a Federal Reserve Governor, potentially paving the way for him to become Fed Chair. Discussions also covered a proposed A.I. profit tax in South Korea and low expectations for the upcoming US-China meeting.