Trump's China visit and US inflation data dominate investor focus
Updated
Updated · The Wall Street Journal · May 8
Trump's China visit and US inflation data dominate investor focus
5 articles · Updated · The Wall Street Journal · May 8
April US CPI is due Tuesday and PPI Wednesday, with markets pricing only a 16% chance of a 25-basis-point Fed cut by September.
Investors will watch Trump's expected summit with Xi Jinping for signals on trade, AI, tariffs and the Iran war, while stronger-than-expected US jobs data have reinforced concerns about persistent inflation.
The week also brings UK and eurozone GDP and inflation figures, Australia's budget and jobs data, and scrutiny of the yen and Bank of Japan commentary.
With global inflation surging, are central banks risking stagflation by holding interest rates steady?
As Trump meets Xi, can a deal on AI and rare earths avert a new tech cold war?
The Strait of Hormuz is blocked. How will the world navigate a dual energy and food supply crisis?
US-China May 2026 Summit: Navigating Inflation, Trade Wars, and Geopolitical Flashpoints
Overview
The May 2026 US-China summit takes place amid rising US inflation caused by increased tariffs and a global energy crisis triggered by the Iran war, which closed the Strait of Hormuz and slashed oil supply, pushing prices above $100 per barrel. This energy shock worsens US economic pressures just before the November midterm elections, prompting the White House to extend a shipping waiver to ease fuel costs. Meanwhile, China strengthens its legal defenses against foreign sanctions with Announcement No. 21, complicating multinational companies' compliance. On the diplomatic front, competing UN resolutions on the Strait of Hormuz reflect deep US-China tensions, with China and Russia opposing the US-led draft, forcing revisions. These intertwined economic and geopolitical challenges set a tense stage for the summit.