Wallstreet News Breakfast FM-Radio | May 6, 2026
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Market Overview
The United States is attempting to ease tensions in the Middle East, stating that the ceasefire agreement remains effective, U.S. stocks rebounded, chip stocks drove S&P and Nasdaq to record highs together. The chip index rose over 4%, outperformed the broader market, and closed at a historic high; memory chip stocks accelerated their gains, Micron and SanDisk both rose over 10%. Reports said Apple is negotiating chip foundry, Intel closed up nearly 13%; AMD surged over 10% after hours due to excellent Q1 earnings and strong guidance for Q2; Super Micro Computer surged 20% after hours as its guidance exceeded expectations, Palantir with good results still closed down nearly 7%.
Concerns over local elections and rising energy prices intensified, UK 30-year government bond yields reached a new high since 1998; U.S. Treasuries prices rebounded, yields followed oil prices down, moving away from a one-month high, and after the U.S. Secretary of Defense said the U.S.-Iran ceasefire agreement still holds, 2-year U.S. Treasury yields hit new daily lows.
The dollar index continued at a two-week low; Bitcoin broke through $81,000 intraday, marking a three-month high.
In commodities, the U.S. Secretary of Defense said the ceasefire agreement has not ended, crude oil retreated, U.S. crude fell 5% intraday, Brent fell over 4%; metals rebounded, gold rose over 1% intraday, futures gold recovered from a monthly trough; New York copper rose over 2%, the largest gain in nearly four weeks.
During the Asian session, Hang Seng Index and Hang Seng Tech Index fell nearly 1%, leading tech stocks tumbled, Baidu rose 2% against the trend, Cheung Kong Holdings rose over 4%.
Top News
China
Iranian Foreign Ministerto visit China on May 6 at the invitation, Wang Yi will have talks with him.
International
U.S. Secretary of Defensesaid the ceasefire has not ended, the "Freedom Mission" in the Strait of Hormuz is a temporary task, not seeking hostilities, Trump does not need Congressional approval to continue military action against Iran; U.S. militarysaid Iran's attacks do not reach the threshold to restart large-scale military operations; Trump refused to clearly answer what actions violate the ceasefire, said Iran “knows what not to do”, said to suspend “Freedom Mission” operations; U.S. militarydisclosed for the first time the deployment of security teams on merchant ships. Iranian President: rational dialogue remains possible, extreme pressure will not succeed; Iranian media reported that Iran has launched a new strait transit management mechanism, Iranian military warned ships: deviation from designated routes will face “firm response”; Israeli Chief of Staff: if Iran attacks Israel, the Israeli military is prepared to respond with force.
Iraq offered the biggest discount in history: $33 per barrel, but buyers must traverse “dangerous” Hormuz to pick up goods; Saudi Arabia lowered the official price of June Arab Light crude oil to Asia, pulling back from a record high.
United StatesApril Services PMI fell short of expectations, combined with high price pressures, intensifying concerns about stagflation; U.S. March job vacancies slightly fell to 6.87 million, hiring activity rebounded.
AMD Q1 revenue exceeded expectations, up 38%, datacenter business surged 57%, Q2 revenue guidance exceeds expectations, up over 50%; earnings call: Q2 CPU revenue expected to rise over 70%, Meta chips to ship in the second half of the year.
Anthropiclaunched financial AI agents, FactSet and other data service providers were impacted; Anthropic promises to invest $200 billion in Google cloud services and chips.
OpenAIlaunched GPT-5.5 Instant model: more reliable, smarter, open to all users.
Reports: Apple is considering cooperating with Intel and Samsung to produce main device chips; Intel stock jumped over 10%.
SanDisk long-term contracts scale continues to expand: has locked in over a third of shipments for fiscal year 2027, targeting 50%.
Market Closing Report
US & European Stock Markets: S&P 500 closed up 0.81%, at 259.22 points; Dow Jones up 0.73%, at 49298.25 points; Nasdaq up 1.03%, at 25326.126 points. European STOXX 600 index up 0.70%, at 609.72 points.
A-shares: Closed.
Bond Market: At the close, US 10-year Treasury yield was about 4.42%, down about 2 basis points on the day; 2-year US Treasury yield was about 3.94%, down about 1 basis point on the day.
Commodities: WTI June crude oil futures closed down 3.90%, at $102.27/barrel. Brent July crude oil futures closed down 3.99%, at $109.87/barrel. COMEX May gold futures closed up 0.8%, at $4555.8/oz. COMEX May silver futures closed up 0.05%, at $73.108/oz. COMEX May copper futures closed up 2.55%, at $5.9430/pound.
Global Highlights
China
Iranian Foreign Minister Aragchi to visit China. Foreign Ministry spokesperson announced: Iranian Foreign Minister Aragchi will visit China on May 6 at the invitation, CCP Politburo member and Foreign Minister Wang Yi will hold talks with him.
After A-share decisions in April, is it Sell in May? GF Strategy Liu Chenming's team notes that A-share Q1 results exceeded expectations, ROE rose after four years of decline, improved corporate operating cash flow driving positive cycle. After "April decisions," structure is more important than positions, AI and new energy industry chains remain the strongest beta. The current actively traded sectors are not overheated, even if there is a short-term adjustment later, the prosperity trend remains unchanged. Historical data shows the "Sell in May" and "May Poor June Absolute" effects have obviously weakened in A-shares.
How many stars for May Day consumption? Minsheng Securities believes that during May Day, spring holidays, experiential consumption and railway travel were hottest; new energy vehicles accounted for nearly a quarter of total traffic, international routes remained strong; while the effect of old-for-new policies diminished, bulk consumption was lackluster. The misalignment between booming travel and lukewarm consumption offers a highly tensioned angle to observe current domestic demand.
Upgrading Cambricon, downgrading Inspur! Goldman predicts the scenario of "the rise of domestic AI chips". Goldman published research reports on Cambricon and Inspur on the same day, with opposite ratings. The underlying logic is the same: domestic AI chips are gaining market share in China—which directly benefits chip designer Cambricon, but for server integrator Inspur, it means falling unit prices and gross margin pressure. Cambricon’s Q1 revenue grew sequentially by 53%, well above expectations, with plenty of orders; Inspur faces declining gross margins.
International
- US Secretary of Defense said, US military's “Freedom Mission” is defensive in nature, temporary task, not seeking hostilities, Iran does not control the Strait of Hormuz, two US merchant ships have safely passed under US military escort; called on Iran to exercise caution and not cross the line, said Trump does not need Congressional approval to continue Iran military action. US military said ready at any time to resume large-scale operations against Iran. Trump refused to clearly answer what constitutes a ceasefire violation, saying Iran is playing games but "wants a deal."
- Trump says to suspend “Freedom Mission” operations. Trump posted on social media stating the "Freedom Mission" guiding Hormuz strait shipping will be suspended in the short term.
- Iranian President: rational dialogue remains possible, extreme pressure will not succeed; Iranian media reported Iran has strengthened control over the strait, launching a new transit management mechanism; Iranian military warned ships: deviation from designated routes will face “firm response”; Iranian Foreign Ministry urged US to “show goodwill.”
- Pakistani Foreign Minister says believes mediation can achieve "major progress." Israeli Chief of Staff: if Iran attacks Israel, Israeli military is ready to respond with force. Reports say US and Israel are coordinating and may be preparing new strike against Iran.
- According to reports, US officials said two US merchant vessels carrying US military security teams were attacked by Iran while passing the Strait of Hormuz. This is the first time US military security teams on merchant ships were disclosed as part of Trump's "Freedom Mission."
- Xinhua: Can the US "Freedom Mission" bring freedom to the Strait of Hormuz? Analysts believe the US is trying to break Iran's control over the strait under the guise of "humanitarianism" backed by military force, but unless Iran agrees, this action will be hard to push forward. As long as Iran maintains its disruptive and deterrent capability in the strait, US "Freedom Mission" will be difficult to succeed. If the US tries to escort ships out of the Strait, its troops and assets will be closer to Iran's range.
- Ceasefire agreement over? Trump "deliberately downplays," UAE condemns, Iranian military warns and foreign minister criticizes "Freedom Mission". On Monday, US-Iran tensions escalated abruptly. The US launched the "Freedom Mission" to guide Hormuz strait traffic and sank Iranian ships, Iran fired on US ships and merchant vessels, UAE was targeted by an Iranian drone strike for the first time. Trump deliberately downplayed the situation, saying ceasefire agreement was not explicitly violated.
Iraq offers the biggest discount in history: $33 per barrel, but buyers must traverse “dangerous” Hormuz to pick up goods. Iraq’s state oil marketing company (SOMO) offered a maximum $33.40 per barrel discount to May contract buyers, on condition their tankers traverse the nearly closed Hormuz Strait to load in the Persian Gulf. Data shows only 2 tankers were loaded in April at Basra, compared to 80 in normal months. SOMO also explicitly removed force majeure clauses, transferring transit risk to buyers.
Holiday "three consecutive days" intervention to boost yen, Japan says "counts as only once," IMF rules "three interventions max in six months". During Japan's Golden Week, three days of foreign exchange intervention spent an estimated $54 billion, but Japan says three actions "count as one," reserving quota for further intervention. IMF allows maximum three interventions in six months to maintain "free floating currency" status. Nomura warns that if policy direction is not adjusted and BOJ doesn't prepare for rate hikes, current intervention effects may not last, and "sell Japan" trades risk a comeback before June.
US April Services PMI fell short of expectations, combined with high price pressure, intensifying stagflation worries. ISM Non-Manufacturing PMI fell from 54.0 to 53.6 in April, below the expected 53.7; S&P Global's April Services PMI final was cut from 51.3 initial to 51.0, employment subindex shrank for second month. Input cost price index stayed at cyclical highs. Weak growth and high inflation increased stagflation concerns, putting the Fed in a policy dilemma.
US March job vacancies fell slightly to 6.87 million, hiring activity rebounded. US JOLTS for March showed job vacancies slipped from February's revised 6.92 million to 6.87 million, expected median 6.85 million. Hiring rate rebounded from February's 3.1% (five-year low) to 3.5%. Overall labor market remains "low hiring, low layoffs." Market now watches for Friday’s non-farm payrolls report.
AMD Q1 revenue exceeded expectations, up 38%, datacenter business surged 57%, guidance for Q2 exceeded expectations. AMD Q2 revenue guidance median is $11.2 billion, up about 50.6% year-on-year, above analyst expectations of $10.52 billion. During the earnings call, AMD’s after-hours stock rise expanded to over 10%.
- AMD earnings call: expects Q2 CPU revenue to grow over 70%, Meta chips to ship in second half. CPU market annual growth over 35% expected by 2030. Due to rising memory and component costs, company expects PC shipments to decline in the second half.
Anthropic launches financial AI agents, FactSet and similar data providers affected. Anthropic released 10 financial AI agents capable of tasks like drafting roadshow materials, reviewing financial statements, and integrating with Excel for financial modeling and report automation, aiming to boost finance sector efficiency. The announcement triggered concerns over traditional financial data providers, FactSet fell over 8% intraday, narrowed losses, closed down about 2.2%.
OpenAI launches GPT-5.5 Instant model: more reliable, more intelligent, open to all users. GPT-5.5 Instant will be available to all ChatGPT users in two days. Compared to GPT-5.3 Instant, it has lower rates of inaccurate statements in professional fields like medicine and law and difficult dialogues; also excels in everyday tasks and image analysis. OpenAI also comprehensively improved memory and personalization features, available to subscribers.
Reports: Apple is considering working with Intel and Samsung to manufacture main device chips. Apple is in preliminary talks with Intel and Samsung about outsourcing main chips, but no orders yet. Analysts believe this move is driven by tight advanced manufacturing capacity due to the AI boom—Apple’s CEO Cook stated in the latest earnings call that chip shortages are limiting iPhone and Mac growth, and expects "several months to restore supply-demand balance." Cooperation with Intel is also seen as a potential bargaining chip to improve relations with the Trump administration.
SanDisk’s long-term contracts keep expanding: over a third of 2027 fiscal shipments locked in, target 50%. SanDisk signed 5 long-term supply agreements, expected to cover over a third of NAND shipments in FY27, with CEO saying the ratio may exceed 50%. Three contracts signed in Q3 had minimum contract revenue of about $42 billion, introducing pledge and default compensation mechanisms, with much stronger constraints than traditional supply agreements. Meanwhile, SanDisk’s HBF prototype production line will start within the year, full system solution is expected to land in first half of 2027.
Google TPU dilemma: Opens market but Nebius, CoreWeave and other new cloud providers remain cautious. In the same week as Google’s direct TPU sales announcement, Nebius, Lambda, and CoreWeave publicly stated they will not follow suit for now. Lambda’s CFO said "bleeding green" (implying Nvidia), 99% of its demand indeed comes from Nvidia GPU, and CoreWeave sticks to GPU for risk-reward reasons.
Selected Research Reports
Father of ClaudeCode: In the “all-code” era, the real business leadership lies in “organizational process gaps”. Claude Code creator Boris says coding problems are “solved”: he hasn't personally written a line of code in 2026, manages hundreds of agents daily with his phone. The real gap isn't tech, but organizational process. With the same tools, whoever transforms their processes first has a true competitive advantage. "Now is the best entrepreneurship era because of AI, with disruption opportunities everywhere. We can do much."
Domestic Companies
Hon Hai’s April revenue hits record for same period, up nearly 30% y/y, sustained by AI server demand. Hon Hai’s April 2026 revenue was NT$832.1 billion, up 29.74% y/y, record for the period, with AI cloud product demand the core driver. Sequential growth slowed from 34.90% in March to 3.53%, consumer smart category was the only declining item. Company expects quarterly growth for Q2, but notes global political and economic uncertainty.
International Macro
US SEC proposes allowing listed companies to substitute semi-annual reports for quarterly, reducing disclosure from four to two times a year. This proposal is open for public comment, and if passed, companies may opt to abandon long-used Form 10-Q quarterly report, shifting to new Form 10-S semi-annual report, not mandatory switch. SEC chair said this aims to give firms more regulatory flexibility.
International Companies
Musk’s “secret reconciliation” rejected; OpenAI president’s $30 billion net worth exposed, invests in Cerebras, CoreWeave and related firms. In the second week of Musk’s lawsuit against OpenAI, OpenAI president Brockman disclosed his stock in OpenAI is valued near $30 billion, but he never invested any personal funds. Leaked texts show Musk threatened “by week’s end, you and Altman will be America’s two most hated people” after failed reconciliation. OpenAI’s lawyers noted this text proves Musk’s real motive is to hit competitors, not legal grounds.
Executive exodus continues, OpenAI sales chief quietly exits. The wave of OpenAI executive departures continues. After core leaders for product, operations, and marketing left, sales director James Dyett recently announced joining long-term investor Thrive Capital. This wave coincides with competitor Anthropic’s revenue annualizing at over $44 billion and rapidly eating into enterprise market, highlighting OpenAI’s competitive pressure and internal stability problems.
Industry/Concepts
1. Artificial Intelligence | According to Shanghai Securities News, recently, the Doubao APP Store page posted a statement for paid services. The statement said to better serve professional users, Doubao will launch paid versions with more value-added services based on the free version. The page revealed three subscription prices: Standard plan monthly ¥68 (annual ¥688), Enhanced plan monthly ¥200 (annual ¥2048), Professional plan monthly ¥500 (annual ¥5088).
Comment: CICC believes Doubao’s move to paid is symbolic, domestic large model providers are moving from user scale driven stage to commercialization phase. Domestic AI user penetration has a foundation, Doubao’s ChatBot application is a leading domestic player, attempts C-end commercialization against ChatGPT; this test price reflects their active attempts at C-end commercialization and may accelerate closing the domestic AI value chain, benefiting compute, application, and ecosystem partners.
2. Memory | Shanghai Securities News reported, May 4 local time, Micron and SanDisk surged against the trend, shares set new record highs. At close, Micron rose 6.31%, SanDisk nearly 5%. Seagate and Western Digital also hit new record intraday highs fueled by this sentiment.
Comment: Analysts say AI demand broke memory market’s usual cyclicality, sustained supply tightness supports continued stock surges. Research institutions predict memory industry boom may continue until 2027. Counterpoint noted demand for memory is surging across sectors, generic DRAM is generating profits at high prices, trend expected to continue until 2027, by then supply will rise. For HBM4, Samsung consolidated its lead with 1cnm core chip and 4nm base chip combo; for upcoming HBM4e, it also holds a competitive edge.
3. Innovative Medicines | Shanghai Securities News reports, May 4, UCB officially announced acquisition of Candid Therapeutics for $2.2 billion, becoming the most significant deal in the autoimmune TCE track. Candid’s core pipeline has roots in domestic firms Anmai Biology and Yiteng Jiahe’s early R&D, marking global pharma’s entry into a race for speed and assets in autoimmune TCE acquisitions.
Comment: Research institutions believe that this major deal not only further proves TCE tech’s broad clinical and commercial potential in autoimmune diseases, but crucially, it provides Chinese innovative pharma companies with a clear path to value realization. As more high-value BD deals land and key clinical data emerges, innovative drugs sector may form sustained resonance at the industry level.
4. Satellite Internet | China Securities News reports SpaceX’s IPO registration documents show Starship project investments have exceeded $15 billion, company will soon launch an upgraded prototype. SpaceX plans to launch new, more powerful "Starlink V3" satellites in the second half of 2026.
Comment: The report says low orbit satellites provide reliable broadband where ground networks can't reach, with huge value in many verticals. If data centers are deployed in space as "space compute factories," they can provide integrated compute for AI model training, remote sensing, and other tasks, a frontier trend for commercial space and AI combination. Low orbit satellite internet is also a key component of future 6G integrated networks.
5. Compute-Power synergy | China Securities News reports China’s first large-scale "compute-power synergy" green power direct supply project—Datang Zhongwei Cloud Base 500,000 kW solar power plant—is officially operational. Marks China's "East Data West Compute" project’s realization of direct link from desert wind-solar power to digital compute. Project in Zhongwei, Ningxia, is the nation’s first new energy comprehensive demonstration zone. It comprises 500kW solar, 1.5 million kW wind, and supporting storage. Full capacity will yield 4.3 billion kWh/year, reducing carbon emissions 3.65 million tons/year.
Comment: The report notes AI's scale expansion drives surging demand for compute and energy; compute-power synergy is now a strategic intersection for smart economy and energy transition. As a national-level new infrastructure initiative, its key prospect is that mutual empowerment between compute and power systems solves AI-era energy bottlenecks and new energy acceptance issues, forming green, low-carbon, and efficient growth. In 2026, it was included in the government work report, indicating formal entry into multi-factor synergy for compute, storage, network, power, energy, and carbon.
6. Pig Farming | China Securities News reports that NDRC, Ministry of Finance, Ministry of Agriculture and Rural Affairs, and Ministry of Commerce will guide local departments to utilize fiscal funds to reserve frozen pork commercially, promoting stable market operation. The pig sector is currently in a deep adjustment cycle under policy guidance. Collecting reserves stabilizes prices and helps guide farms to orderly eliminate low-efficiency capacity, control new additions, and achieve stable transition and high-quality development.
Comment: The report says with central policy signals, outlook for pig prices is cautiously optimistic. Institutions believe that policy support, deep industry losses, and continued elimination of breeding sows point to the pig market nearing the cycle bottom. As capacity cuts show effect, supply-demand should improve, and the price turning point is approaching in H2 2026.
7. Semiconductors | Securities Times reports global lithography leader ASML may be developing wafer-to-wafer (W2W) hybrid bonding equipment. ASML CEO hinted at interest in hybrid bonding tech in Q1 earnings call. ASML monopolizes EUV lithography, controls the chip manufacturing core. Now eyeing the core battleground of semiconductor backend, from lithography to packaging, ASML aims to complete the whole supply chain. Hybrid bonding with high interconnection density, precision, bandwidth, and energy efficiency is considered key for future high compute, high bandwidth, and low power chips, with demand driven by the explosive growth of AI/HPC and HBM. Hybrid bonding equipment market shows distinct "overseas lead, domestic breakthroughs" trend.
Comment: Industry analysts said ASML's entry into hybrid bonding could significantly reshape the market, accelerating maturity, and creating obvious opportunity for domestic alternatives.
8. Helium | Securities Times reports global helium market has fully adopted "rationing", the three international giants (Linde, Air Liquide, Air Products) stopped spot quotes, only supply long-term contract customers. Domestic prices climbed with international: industrial grade pipeline helium (5N) average at end April about ¥350-400/m³, jumped to ¥450-500/m³ May 1, and by May 3 spot prices broke through ¥500-550/m³, a two-day surge of 40%-57%, with prices often available but not actual transactions.
Comment: Analysts say supply chain security is now the top priority globally, procurement decisions have shifted from "cost optimal" to "supply priority", and with the helium supply gap unlikely to be filled soon, prices will likely stay high.
Today’s Key Events Preview
China April RatingDog Services and Composite PMI.
Eurozone, UK, India April Services and Composite PMI final readings.
US April ADP employment numbers.
Eurozone March PPI.
St. Louis Fed President Musalem, Chicago Fed President Goolsbee speak.
Weekly US EIA crude oil inventory changes.
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