Key Takeaways
- Fed Holds Rates, Warns Tariffs May Boost Joblessness and Inflation
The Federal Reserve left interest rates unchanged but flagged the economic risks of Trump’s tariffs, as policymakers brace for potential unemployment spikes and price hikes. - Pakistan Ceasefire Boosts Markets and Sentiment
Following deadly border clashes, a U.S.-brokered truce between India and Pakistan triggered a regional market rebound, reinforced by IMF support and central bank easing hopes. - Bitcoin and Ethereum Rally Amid Market Rotation and Derivatives Growth
Bitcoin rose 9.17% and Ethereum surged nearly 30% in 5 trading days, driven by flight from fiat risks, tariff volatility, and Coinbase’s $2.9B acquisition of Deribit. - Amazon’s Secret Chip Bet Pays Off as Annapurna Powers New AI Supercomputer
Amazon’s decade-old stealth acquisition now underpins its AI strategy, as Annapurna-designed chips enable AWS to scale faster, cheaper, and more securely. - OpenAI Abandons For-Profit Plan to Retain Nonprofit Control
In a win for critics like Elon Musk, OpenAI reversed course and reaffirmed its nonprofit governance, ensuring AI development remains focused on public benefit over investor return.
IPO’s in the week
- Apimeds Pharmaceuticals US, Inc. (NYSE American: APUS), a clinical-stage biopharmaceutical company developing Apitox, a bee venom-based treatment for knee osteoarthritis and multiple sclerosis, completed its IPO on May 9, 2025. The company offered 3,500,000 shares at $4.00 each, raising $14 million to advance its therapeutic programs.
- EGH Acquisition Corp. (Nasdaq: EGHAU), a blank check company formed to pursue mergers, asset acquisitions, or similar business combinations across any industry or geographic region, completed its IPO on May 9, 2025. The company offered 15,000,000 units at $10.00 each, raising $150 million to fund future acquisition efforts.
- American Integrity Insurance Group, Inc. (NYSE: AII), a Florida-based residential property insurer providing coverage for homeowners, condos, and investment properties—primarily in Florida—completed its IPO on May 8, 2025. The company offered 6,875,000 shares at $16.00 each, raising $110 million to support its continued growth in the Florida insurance market.
- Aspen Insurance Holdings (NYSE: AHL), a global specialty insurer and reinsurer backed by Apollo Global Management, completed its IPO on May 8, 2025. The company offered 13.25 million shares at $30.00 each, raising $397.5 million. Aspen is reshaping its business mix by reducing reinsurance and catastrophe exposure under CEO Mark Cloutier.
- Dune Acquisition Corp II (Nasdaq: IPODU), a Cayman Islands–incorporated blank check company targeting sectors such as SaaS, AI, MedTech, semiconductors, and asset management, completed its IPO on May 7, 2025. The company offered 12,500,000 units at $10.00 each, raising $125 million to fund a future business combination.
Markets this week
- S&P 500 closed at 5,659.91, up 3.59 points and 0.06%.
- Russell 1000 ETF closed at 310.24, up 1.21 points and 0.39%.
- Russell 2000 closed at 2023.07, up 19.09 points and 0.95%.
- Russell 3000 closed at 3222.61, up 5.53 points and 0.17%.
- CBOE Volatility Index closed at 21.90, down 2.35 points and 9.69%.
- Dow Jones Industrial Average closed at 41,249.38, up 76.00 points and 0.18%.
- Nasdaq Composite closed at 17,928.92, up 111.91 points and 0.63%.
- Gold closed at $3,329.10, up $86.40 and 2.66%.
- Silver closed at $32.88, up $0.96 and 3.01%.
- WTI (West Texas Intermediate) closed at $61.06, up $4.30 and 7.58%.
- Brent Crude Oil closed at $63.92, up $4.41 and 7.41%.
- Bitcoin (BTC-USD) closed at $102,970.85, up $8,651.29 and 9.17% during the 5 trading days.
- Ethereum (ETH-USD) closed at $2,345.51, up $536.81 and 29.68% during the 5 trading days.
- XRP (XRP-USD) closed at $2.3447, up $0.1869 and 8.66% during the 5 trading days.
- The Fed held rates steady, warning that tariffs could raise inflation and joblessness. Governor Kugler said the labor market remains near full employment.
- Elliott Management is in talks to invest in Bulgaria’s extension of the TurkStream pipeline, Russia’s last active gas route to Europe.
- May 9 – Markets bounced after Trump delayed tariffs and trade talks resumed, but analysts warn the rebound may not hold as 10% tariffs remain damaging for global trade.
- Asian markets closed higher but pared gains as investors digested China’s rate cuts and cautious U.S.-China trade talks.
- Celsius founder Alex Mashinsky was sentenced to 12 years for fraud tied to the platform’s $20B collapse, after misleading customers and profiting from CEL token sales.
- Coinbase agreed to acquire crypto options giant Deribit for $2.9 billion, expanding into derivatives as trading volumes surge and regulation eases.
- Coinbase reported a sharp profit drop to $66M in Q1, down from $1.2B a year ago, citing bitcoin losses. Revenue rose to $2B but missed Wall Street estimates.
- Warren Buffett will step down as Berkshire Hathaway CEO in December after 60 years. Greg Abel will assume the role, with Buffett remaining as chairman.
- Stocks rebounded after tariff delays and resumed talks, but analysts warn the rally may be overdone as risks from high tariffs and weak trade outlook persist.
- Private equity restructurings are sidelining lenders, with firms like Tropicana and Rodan & Fields creating multi-tiered debt deals that push smaller creditors to the back of the repayment line.
- Stocks in India and Pakistan are poised for a relief rally, as a surprise ceasefire and IMF aid shift investor focus back to economic recovery, liquidity, and rate cut expectations.
- U.S. oil executives turn critical of Trump, as tariffs raise costs and falling crude prices threaten drilling despite the industry’s past support.
- Investors eye Asia’s cheap currencies like the won, rupiah, and rupee, boosted by China’s stimulus and improving U.S.-Asia trade ties.
- U.S. inflation showed signs of accelerating, as rising tariff-related costs prompted concerns that businesses may soon pass higher prices to consumers.
- Traders are shifting to longer-term hedging strategies, using tail-risk puts and volatility knock-outs as tariff shocks give way to renewed market uncertainty.
Politics Weekly
- The U.S.-U.K. trade deal sets a new baseline 10% tariff on most British goods, signaling a broader shift toward protectionism.
- Chinese exports to the U.S. dropped over 20% in April year-over-year, while shipments to Southeast Asia rose, signaling early effects of U.S. tariffs.
- President Trump proposed cutting China tariffs to 80%, still a major hurdle. U.S.-China talks are set for the weekend to ease tensions.
- China is sending Security Minister Wang Xiaohong to Switzerland for trade talks, highlighting the focus on fentanyl cooperation alongside tariff negotiations.
- Over 20 world leaders, including China’s Xi Jinping, joined Putin in Moscow for Victory Day, marking 80 years since the Soviet victory in WWII and showcasing diplomatic ties.
- The U.S. may run out of cash by August, Treasury Secretary Scott Bessent warned, urging Congress to raise the debt ceiling by mid-July as part of a broader fiscal package.
- President Trump said he hasn’t decided if Iran will be allowed to enrich uranium under a new nuclear deal, hinting at possible flexibility in ongoing talks.
- The U.S. completed successful test flights of Talon-A, a reusable hypersonic aircraft, marking progress in closing the gap with China in hypersonic weapons development.
- California and 16 other states sued the Trump administration for halting EV charging funds, warning the move could hurt the growing clean tech industry.
- President Trump is reconsidering a millionaire tax, proposing a top rate of 39.6% on incomes over $2.5 million to ease GOP budget pressures.
- The Trump administration will pay $1,000 to migrants who self-deport using a new DHS app, aiming to cut costs and boost voluntary departures.
- President Trump announced a truce with Yemen’s Houthi militants to halt Red Sea shipping attacks, though the group vowed to continue targeting Israel.
- India and Pakistan reached a U.S.-brokered cease-fire on Saturday after days of border clashes, with Trump praising the truce led by VP Vance and Secretary Rubio.
- Marco Rubio takes over as Secretary of State, assuming a central role in foreign policy as Trump sidelines the National Security Council.
- Trump urges Ukraine to meet Putin in Turkey, even without a ceasefire, saying talks could help determine if peace is possible.
- U.S. and China made ‘substantial progress’ in Geneva trade talks, with Treasury Secretary Bessent and USTR Greer signaling de-escalation after two days of negotiations.
Technology Advancements this week
- Amazon’s stealthy 2015 acquisition of Annapurna Labs now powers its AI strategy, with custom chips forming the backbone of AWS and a new AI supercomputer underway.
- Apple is revamping Siri and exploring AI integrations to stay competitive as rivals advance faster in generative tech.
- Mark Zuckerberg envisions AI friends and agents becoming central to daily life, pushing Meta’s chatbot tech into social apps, wearables, and personal relationships.
- China’s biotech surge is raising U.S. security concerns, with a congressional panel urging $15B in research funding and restrictions on Chinese suppliers.
- Biotech startups are partnering more with big pharma, focusing on commercial viability amid market and regulatory uncertainty.
- AI is reshaping online search, with marketers like Mailchimp now optimizing websites for AI bots over human visitors to retain relevance and traffic.
- OpenAI scrapped plans to become a for-profit company, keeping control with its nonprofit board and pledging to prioritize humanity over shareholders.
- IBM says AI has replaced some HR roles but boosted overall hiring by creating new jobs in software and sales, as it launches tools for building custom AI agents.
- Google’s Safari search traffic declined for the first time in 20 years as users shift to AI tools like ChatGPT, signaling a major disruption in traditional search.
- Sonos is rebounding a year after its buggy app rollout, with CEO Tom Conrad leading software-focused reforms and boosting sales 3%, lifting shares 16%.
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