General Market News

The article highlights three AI infrastructure stocks experiencing strong institutional investment in 2026: Sterling Infrastructure (STRL), nVent Electric (NVT), and Vertiv (VRT). These companies operate across different layers of AI data center infrastructure—construction, power, and cooling—and have delivered exceptional earnings performance with year-to-date gains ranging from 58% to 145%. The AI infrastructure build-out represents a multi-year investment opportunity driven by sustained capital deployment.

• Sterling Infrastructure (STRL) focuses on physical infrastructure with $825.7M revenue vs. $603.6M expected and EPS guidance of $18.725 vs. $13.73, up 145% YTD
• nVent Electric (NVT) provides electrical solutions with sales guidance up 29% vs. 18.2% expected and full-year EPS raised to $4.50 from $4.20, up 58% YTD
• Vertiv (VRT) specializes in cooling solutions with a $121B market cap, quarterly EPS of $1.17 vs. $1.00 estimate, and 2028 EPS guidance of $10.96, up 94% YTD

The U.S. Federal Trade Commission fined Cox Media Group $880,000 and two partner marketing firms for falsely claiming they used AI and voice-processing technology to track consumer conversations near smart devices for ad targeting. The companies misrepresented their capabilities to potential advertisers in 2023 and falsely claimed consumers had opted in to voice data collection.

• Cox Media Group will pay $880,000, while partner firms MindSift and 1010 Digital Works will each pay $25,000 for the deceptive marketing practices
• The company falsely told advertisers it could 'identify buyers based on casual conversations in real time' and that consumers had consented to voice data collection
• Cox, which operates radio and TV stations with a digital marketing arm, blamed third-party vendor marketing materials and said it has stopped using the product in question

Nvidia CEO Jensen Huang predicted AI capital expenditures could reach $3-4 trillion annually by the end of the decade, far exceeding Wall Street's consensus estimate of $1.03 trillion by 2028. This optimistic forecast is driven by growing cloud revenues and advances in AI agents, though economists remain divided on whether AI productivity gains justify such massive spending.

• Huang's $3-4 trillion estimate is 3-4 times higher than Wall Street consensus projections, which forecast hyperscale capex hitting $1 trillion in 2027-2028
• Major cloud providers showed strong quarterly revenue growth: Microsoft Azure up 63%, Google Cloud up 28%, and AWS up 40%, supporting Huang's optimism
• JPMorgan estimated that achieving just a 10% return on AI investments through 2030 would require about $650 billion in annual revenue perpetually, while AI productivity gains remain unclear and lack economist consensus

Sixteen states are engaged in legal battles with prediction market platforms, while the Commodity Futures Trading Commission has sued six states to defend its claimed exclusive jurisdiction over event contracts. The conflict centers on whether prediction markets constitute gambling under state law or federal swap contracts, with cases likely heading to the Supreme Court.

• All six states sued by the CFTC have Democratic attorneys general, despite 16 total states being involved in legal proceedings including five with Republican AGs
• The CFTC won a preliminary injunction in Arizona to stop enforcement against Kalshi, while cases in the other five states (New York, Connecticut, Illinois, Wisconsin, Minnesota) remain ongoing
• Minnesota became the first state to ban prediction markets entirely after Gov. Tim Walz signed legislation, prompting a CFTC lawsuit asserting federal preemption

US stock markets reversed early losses on Thursday after reports emerged of a draft peace agreement between the United States and Iran, easing geopolitical tensions. The Dow Jones rose 0.62%, while the S&P 500 and Nasdaq each gained 0.37% as investors rotated back into risk assets. The draft deal reportedly includes an immediate ceasefire, freedom of navigation through the Strait of Hormuz, and gradual sanctions relief tied to Iranian compliance.

• The draft agreement includes commitments from both sides not to target infrastructure and guarantees for freedom of navigation through the Persian Gulf and Strait of Hormuz under joint monitoring, with negotiations on unresolved issues to begin within seven days.
• US crude oil prices hovered near $97 per barrel as traders speculated the deal could restore stable energy flows through the Strait of Hormuz, where traffic has declined sharply since the conflict intensified.
• Treasury yields edged lower as investors reassessed near-term inflation outlook, with reduced concerns about prolonged disruptions in global energy markets that had been driving oil-related inflation pressures.

The Memorial Day-shortened trading week will feature key economic data releases including the PCE inflation index, revised Q1 GDP, and consumer confidence reports. Major retailers including Gap, Dollar Tree, and Kohl's will report earnings alongside tech companies like Salesforce, Dell, and Snowflake. Markets are closed Monday, May 25 for Memorial Day, with Friday bringing the heaviest schedule of economic data.

• Friday, May 29 will be the busiest day with multiple data releases: revised Q1 GDP, personal income/spending, PCE inflation index (the Fed's preferred gauge), and trade balance data
• Retail earnings from Gap, Dollar Tree, Kohl's, and AutoZone will provide insights into consumer spending trends during the quarter
• Key housing market data includes the S&P Case-Shiller home price index on Tuesday and new home sales figures on Thursday

Russia's NORSI refinery, the country's fourth-largest and second-biggest gasoline producer, has partially shut down its main processing unit after a Ukrainian drone attack on Wednesday. The facility can process 320,000 barrels per day, and the affected unit accounts for 53% of its total capacity. This adds to a broader pattern of Ukrainian strikes forcing major Russian refineries to halt or reduce output.

• The shutdown of NORSI's CDU-6 unit eliminates 190,000 barrels per day of processing capacity, representing over half the refinery's output
• Multiple major refineries in central Russia have been forced to halt or scale back operations due to recent Ukrainian drone attacks
• The targeted facility is located in Nizhny Novgorod, approximately 450 km east of Moscow, and is owned by Lukoil

Oura, the Finnish maker of the Oura Ring smart wearable, has confidentially filed for an IPO in the United States. The move comes as the U.S. IPO market rebounds strongly after a March slowdown, with investors pushing past geopolitical uncertainty to fund new listings. Oura raised over $900 million at an $11 billion valuation in October 2024.

• Oura's smart ring tracks sleep, activity, and health metrics, offering personalized wellness insights to users
• The company achieved an $11 billion valuation in its October funding round led by Fidelity Management & Research Company
• Confidential IPO filings allow companies to prepare for public listings away from market scrutiny as U.S. IPO momentum returns

Federal Reserve meeting minutes from late April reveal growing anxiety among staff and officials about elevated financial market risks, including high asset valuations, bond yield volatility, and AI-related debt concerns. This comes as Kevin Warsh prepares to assume the Fed chair role on Friday, succeeding Jerome Powell, with Warsh known for criticizing some of the Fed's recent market intervention tools and favoring a smaller Fed balance sheet.

• Fed staff characterized financial vulnerabilities as 'notable' with 'elevated' asset valuation pressures, while several policymakers noted heightened risk of sharp market corrections and concerns about opaque private credit markets
• Some officials discussed potential improvements to Fed liquidity tools including the discount window, standing repo operations, and currency swap lines, with a few favoring extending swap arrangements beyond the current year for financial stability
• Warsh's incoming leadership raises uncertainty as he has been critical of aggressive asset buying programs and may seek greater Treasury coordination, prompting fears the Fed could be less willing to intervene during financial stress

On May 21, 2026, pre-market trading showed mixed economic signals with initial jobless claims falling to 209K and housing starts rising to 1.465 million, though single-family home construction declined while multi-family units surged. The Philly Fed index turned negative for the first time in 2026, and major retailers including Walmart, Advance Auto Parts, and Williams-Sonoma beat earnings expectations.

• Initial jobless claims dropped to 209K with continuing claims at 1.78 million, marking the fourth consecutive week below 1.8 million for the first time in two years
• Housing starts showed divergent trends: single-family starts fell 9% while multi-family construction jumped 14.3%, reflecting high mortgage rates dampening demand for single-family homes
• Philly Fed Manufacturing Index fell to -0.4% from 26.7% prior month, missing expectations of 19.0% and marking the first negative reading of 2026

Some U.S. Federal Reserve officials have proposed extending dollar swap lines with five major central banks beyond their current annual renewal period to enhance financial stability. The discussion comes amid global instability from a U.S.-Israel-Iran conflict and growing concerns about America's reliability in providing dollar backstops. Incoming Fed Chair Kevin Warsh's ambiguous comments about the Fed's independence in international finance matters have unsettled European central banking peers.

• Dollar swap lines with five central banks (including the Bank of Japan and European Central Bank) are currently reinstated annually, but some FOMC participants suggested longer extensions would benefit financial stability
• The proposal emerges during heightened global instability driven by conflict and energy cost concerns, with questions mounting about U.S. reliability in both military defense and financial support
• Incoming Fed Chair Kevin Warsh indicated the Fed may lack 'special deference' in international finance matters and would need to work with the Administration and Congress, creating uncertainty among international partners

U.S. stock indices declined on May 21, 2026, with the S&P 500 falling 0.2% and Nasdaq down 0.3% as oil prices surged approximately 3% following Iran's directive to retain enriched uranium domestically. Rising Treasury yields (10-year at 4.615%, 30-year at 5.14%) and renewed inflation concerns pressured equities, while Nvidia's strong earnings failed to lift tech stocks.

• WTI crude jumped roughly 3% to $102/barrel and Brent to $108 after Iran's supreme leader ordered enriched uranium kept inside borders, reigniting inflation fears and deal optimism collapse
• Nvidia beat estimates with 85% year-over-year revenue growth ($81.62B vs. $78.86B expected) but the stock barely moved, signaling stretched expectations across the AI sector
• Philadelphia Fed Manufacturing Index collapsed to negative 0.4 in May from 26.7 in April, a brutal miss suggesting potential earnings impacts two quarters ahead; quantum computing stocks surged on reports of $2B in government grants with Washington taking equity stakes

Rep. Nick Begich (R-Alaska) has introduced the American Reserve Modernization Act to establish a strategic bitcoin reserve within the U.S. Treasury Department, aiming to diversify America's reserve holdings. The bipartisan bill comes after President Trump's March 2025 executive order on bitcoin reserves and follows the Treasury's recent seizure of nearly $500 million in Iranian cryptocurrency assets. The legislation would create separate holdings for bitcoin and other digital assets.

• The bill has bipartisan support with over a dozen co-sponsors, including Rep. Pat Harrigan (R-N.C.), who notes the U.S. already holds billions in seized bitcoin without a management strategy
• Target goal is for the U.S. to hold approximately 5% of global bitcoin supply (about 1 million coins), roughly equivalent to current U.S. gold reserves which represent 60% of crypto market capitalization
• The Senate Banking Committee passed the related Clarity Act 15-9, with Sen. Cynthia Lummis projecting a possible Senate floor vote by mid-June 2025, though she called that timeline 'pretty optimistic'

Ted Oakley of Oxbow Advisors warns that U.S. markets face a dangerous disconnect between AI-driven tech euphoria and deteriorating consumer finances, as the 30-year Treasury yield hits 5.18% - levels unseen since the 2008 financial crisis. Credit card delinquencies have reached 11%, matching crisis-era levels, while auto loan delinquencies are even higher, contradicting Wall Street's optimistic consumer outlook.

• U.S. household credit card balances hit a record $1.28 trillion by end of 2025, with serious delinquencies (90+ days overdue) surging to 11%, returning to levels last seen over a decade ago.
• Tech firms are expected to spend $725 billion on AI infrastructure this year, but Oakley believes investors are ignoring the physical commodities and power grid requirements needed to support this buildout.
• Oakley recommends energy stocks (currently only 3% of S&P 500 versus 32% in early 1980s) and gold mining equities, warning gold may need a $500 drop to flush out momentum buyers before becoming a buying opportunity near $4,000.

Blockchain.com, a cryptocurrency platform founded in 2011, has confidentially filed for a U.S. IPO, marking another potential public market debut from the digital asset sector. The company has not disclosed pricing, share count, or timing for the offering. Blockchain.com provides wallets, exchange services, and blockchain infrastructure tools, claiming to have processed over $1.2 trillion in transactions.

• The confidential filing allows the company to prepare for the IPO away from public scrutiny before disclosing detailed financial information and offering plans
• Blockchain.com operates multiple services including cryptocurrency wallets (custodial and non-custodial), a trading exchange, institutional OTC trading, and the widely-used Blockchain Explorer tool
• The platform claims to have hosted tens of millions of wallets and processed more than $1.2 trillion in transactions across Bitcoin, Ethereum, and other networks

US stock indices fell on Thursday, with the S&P 500 down 0.48%, Nasdaq declining 0.56%, and Dow dropping 242 points (0.49%), as rising oil prices and Treasury yields reignited inflation concerns amid renewed Iran tensions. Nvidia's strong earnings and $80 billion buyback failed to lift sentiment, while investors weighed geopolitical risks and mixed corporate results.

• WTI crude jumped 2.9% to $101.04 per barrel and Brent rose 2.3% to $107.36 after Iran's Supreme Leader reportedly directed enriched uranium remain in-country, reversing Wednesday's optimism over nuclear negotiations
• The 10-year Treasury yield climbed 5 basis points to 4.615% as higher oil prices intensified inflation worries and complicated the Federal Reserve's policy outlook
• Nvidia stock fell despite beating earnings, announcing an $80 billion buyback, and raising its dividend to 25 cents per share, as investors questioned growth sustainability amid intensifying AI chip competition

UBS has raised its 2026 global equities earnings growth forecast from 12% to 20%, driven by strong corporate results and resilient fundamentals despite the US-Iran conflict disrupting Middle East oil transit. The bank set a December 2026 target of 1,410 for the MSCI All Country World Index and maintained its 'attractive' rating on global equities, which have hit fresh all-time highs.

• Half the earnings upgrade stems from technology sectors benefiting from compute shortages and memory bottlenecks, with AI-related capital spending expected to grow nearly 70% this year and 20% next year
• Energy sector accounts for 25% of the upgrade due to rising oil and gas prices from Strait of Hormuz disruptions caused by the Iran conflict
• UBS warns of three key risks: timing of Strait of Hormuz reopening, potential inflation and bond yield increases undermining valuations, and intensifying tech sector competition; sees downside target of 935 if Middle East conflict escalates

Stock futures pointed lower Thursday as investors digested earnings from Nvidia and Walmart following the previous day's sharp gains in major indexes. Oil prices rose over 2% to $100.50 per barrel amid tensions over Iran's nuclear negotiations, while Treasury yields edged up to 4.62%.

• Nvidia reported record $81.8 billion quarterly revenue but shares were flat as strong results failed to exceed high market expectations driven by continued AI infrastructure spending
• Walmart stock slipped despite beating revenue forecasts due to sluggish guidance, while Intuit shares tumbled after announcing layoffs despite posting better-than-expected earnings
• SpaceX filed its IPO prospectus revealing $18.67 billion in revenue last year alongside a $4.94 billion net loss, setting up one of 2025's most anticipated market debuts

The Magnificent Seven tech companies reported quarterly earnings that reinforced investor confidence in AI investments despite economic uncertainties. Nvidia led with exceptional revenue growth while the group collectively ramped up debt issuance to $134 billion in 2025 to fund AI infrastructure buildouts. The earnings suggest the market's concentration in megacap tech stocks is supported by fundamentals, though rising capital expenditures may pressure future shareholder returns.

• Nvidia's revenue growth significantly outpaces its Magnificent Seven peers, maintaining its position as the world's most valuable company driven by AI infrastructure demand
• Bond issuance by the group jumped to $134 billion in 2025 (through May), already surpassing the full-year 2024 total of $87.5 billion, with Alphabet, Amazon, and Meta leading the borrowing spree
• S&P 500 capital expenditure is forecast to grow 33% in 2026 compared to just 3% growth in buybacks, indicating potential reduction in shareholder returns as companies prioritize AI investments

US stock indices showed limited movement in early Thursday trading on May 21, 2026, as markets consolidated following a recent bullish run. The Nasdaq 100, Dow Jones 30, and S&P 500 all displayed choppy, sideways price action as investors navigated earnings season and concerns about rising interest rates, particularly their impact on technology stocks.

• The Nasdaq 100 is consolidating above 28,500 as extreme swings in interest rates create headwinds for tech stocks, though the analyst maintains a bullish long-term outlook
• The Dow Jones 30 attempted to break above 50,000 with potential resistance at 50,500, while support is identified near 49,300
• The S&P 500 is treading water with key support levels at 7,350 and 7,300, and a short-term ceiling at 7,500, with sideways consolidation viewed as healthy after the recent rally