Wall Street eyes inflation data, Iran war and US-China meeting
Updated
Updated · Reuters · May 8
Wall Street eyes inflation data, Iran war and US-China meeting
3 articles · Updated · Reuters · May 8
Next week, investors will watch US CPI, PPI and retail sales, plus Donald Trump's planned meeting with Xi Jinping in Beijing.
The S&P 500 has rebounded more than 16% from its late-March low and is up 8% in 2026, helped by a strong earnings season and easing worst-case war fears.
Markets are also tracking any reopening of the Strait of Hormuz after oil surged, while Cisco and Applied Materials results may test whether AI spending keeps supporting stocks.
Can the market's AI-fueled rally survive a consumer spending collapse driven by the ongoing war and soaring energy prices?
As AI drives record profits, is the market ignoring the looming power grid and component shortages that could halt the boom?
Will China's peacemaking role in Iran force the U.S. to concede on critical technology and rare earth access?
Global Inflation Surges Past 4%: Iran War, Trump-Xi Summit, and U.S.-China Tariffs Drive Economic Uncertainty in 2026
Overview
The Trump-Xi summit, set for May 14–15, 2026 in Beijing, comes at a critical time for global stability, especially with the ongoing Iran conflict and tense U.S.-China relations. Both countries have been building up economic pressure tools, which they plan to use as leverage during the talks. While China appears confident and ready to challenge President Trump on issues like sanctions, technology controls, and critical minerals, its eagerness to host the summit suggests some underlying caution. The meeting is expected to be a modest step toward more predictable relations, reflecting the complex dynamics at play.