05/22/2026
Here’s a recap from key market stories this week.
1. Revenue rose 85% y/y in Q1 FY27, the fastest pace in more than a year, and Nvidia expects further acceleration in the current quarter. These strong results reaffirm its dominance as tech giants depend on its products to build AI infrastructure. Still, markets may be hard to impress as challenges mount. The firm does not expect any sales in China, depriving it of a key growth catalyst. At the same time, the rise of CPU-heavy workloads puts rivals like AMD and Intel in the spotlight, while hyperscalers like Google and Amazon increasingly rely on custom silicon.
2. Baidu revenues fell 1% y/y in Q1, marking the fourth straight quarter of contraction, amid macroeconomic headwinds that hurt advertising sales, while profits halved. However, AI-related revenues jumped 49%, underscoring that AI has become the main growth driver. The results show the shift to AI is working, but the transition is costly and volatile. The Apollo Go robotaxi service remained a bright spot, with triple-digit ride growth, but regulatory hurdles loom.
3. The Chinese economy slowed in April, according to this week’s data, as the Middle East conflict adds to structural fragilities. Retail sales rose just 0.2% y/y, the slowest pace in more than three years, underscoring weak domestic consumption. A 4.1% increase in industrial production underwhelmed, reflecting input cost pressures. Still, export growth, Beijing’s fiscal measures and a trade truce with the US can support growth.
4. British inflation eased more than expected in April, rising 2.8% y/y, largely due to base effects and government support with energy bills. This takes some of the pressure off the Bank of England to hike rates, providing a buffer against growth risks and fiscal concerns amid political uncertainty. Still, the BoE expects inflation to rise further and has signalled tightening ahead, wary of a wage-price spiral.
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