Wall Street had a promising week until it didn't. Major indexes climbed toward record territory for most of the week — the S&P 500 and Nasdaq both hit all-time highs on Thursday — before a sharp Friday selloff wiped out nearly all those gains. Spiking crude oil prices and a 10-year Treasury yield that pushed above 4.5% (its highest in nearly a year) were the main culprits. The Dow Jones ended the week flat while the small-cap Russell 2000 took the hardest hit.
On the geopolitical front, the Trump-Xi summit wrapped up with warm words but little substance, leaving markets largely unmoved on the trade front.
Inflation Refuses to Cooperate
Two consecutive hotter-than-expected inflation prints rattled rate-cut hopes this week. Core CPI ticked up to 2.8%, driven partly by a jump in airline fares tied to higher jet fuel costs and a seasonal spike in tax preparation fees. Meanwhile, core producer prices surged 1% — though analysts attributed much of that to a reduction in tariff rates following a Supreme Court ruling rather than actual price pressure from sellers. The silver lining: core goods prices held flat, suggesting tariff-driven inflation may have already peaked. Still, with oil prices elevated and the Fed watching closely, the next rate move could just as easily be a hike as a cut.
Cisco Wows Wall Street
The week's biggest corporate story belonged to Cisco Systems (CSCO), which blew past earnings expectations on the back of surging AI-related orders. Revenue climbed 12% to $15.8 billion, while product orders leapt 35% year-over-year. The real headline: AI networking infrastructure orders hit $5.3 billion in the quarter, more than double the prior quarter's $2.1 billion. Cisco raised its full-year AI order forecast from $5 billion to $9 billion and projected next-quarter revenue of $16.8 billion — well above the $15.8 billion Wall Street had penciled in. The company also announced roughly 4,000 job cuts, framing the move as an AI-driven productivity gain. Shares surged to a record high.
Cerebras Makes a Scorching Debut
AI chipmaker Cerebras Systems (CBRS) had one of the splashiest IPOs in recent memory, pricing at $185 per share before closing its first trading day at $311 — a gain of nearly 70%. The company positions itself as a direct challenger to Nvidia's dominance in AI silicon. Shares pulled back somewhat on Friday but the debut was undeniably electric.
Chips and Semis in the Spotlight
Applied Materials (AMAT) returned to growth mode with a beat-and-raise quarter — earnings up 20%, revenue up 11% to $7.91 billion — citing the global AI infrastructure buildout. Shares held near highs. Tower Semiconductor (TSEM), Arteris (AIP), and Ambiq Micro (AMBQ) all soared after strong results. Camtek (CAMT) was the exception, sliding after its report raised concerns about slowing growth and potential market share erosion.
Crypto Corner: Circle Expands Its Ambitions
Stablecoin issuer Circle Internet (CRCL) posted a 30% drop in earnings but beat expectations, while revenue grew 20% to $694 million. USDC circulation jumped 28% and on-chain transaction volume exploded 263%. Circle also revealed it raised $222 million in a presale of Arc, the native token for its new institutional blockchain. On Capitol Hill, the Senate Banking Committee advanced the Clarity Act, a crypto market structure bill with stablecoin provisions — though it still needs to clear additional hurdles before becoming law.
China Stocks Get a Temporary Lift
Alibaba's adjusted earnings collapsed 95% to nearly zero, weighed down by heavy AI spending and food delivery discounting. Yet shares jumped 8% mid-week as investors cheered AI-driven cloud growth and rallied ahead of the Trump-Xi summit. The bounce faded by Friday. Rival JD.com (JD) fared better, beating on both revenue and earnings and breaking out to a new buy point on strong weekly gains.
Quantum Computing: Big Promises, Thin Revenue
Quantum computing firms remained more story than substance this week. D-Wave (QBTS) saw bookings surge from $1.6 million to $33.4 million, but actual revenue plunged over 80%. Quantum Computing (QUBT) and Rigetti (RGTI) both topped estimates on a relative basis, but share price reactions were volatile and ultimately disappointing. The sector's biggest news may be structural: Honeywell's quantum unit Quantinuum filed for an IPO targeting roughly $1.5 billion, reporting $30.9 million in 2025 revenue but a $192.5 million net loss.
Nuclear Power Stays in the Mix
Constellation Energy (CEG) beat earnings comfortably but its stock slipped below a key technical level as investors digested the results. The company confirmed its Three Mile Island restart project with Microsoft remains on track. Smaller SMR players Oklo (OKLO) and Nano Nuclear (NNE) both sold off despite reporting milestones, while Oklo highlighted new partnerships with Nvidia and Meta targeting commercial operations by 2028.
Other Notables
Liquidia Technologies (LQDA) surged to a record after quarterly sales grew over 4,000%, almost entirely driven by its pulmonary hypertension drug Yutrepia. Cloud computing firm Nebius (NBIS) also hit record highs after revenue surged 684%. Viking Holdings (VIK) briefly touched a new high after reporting strong cruise bookings for 2026 and announcing a new CEO. AT&T, T-Mobile, and Verizon jointly announced a satellite-based venture to eliminate rural wireless dead zones — a clear signal that Elon Musk's Starlink is being taken seriously as a long-term competitive threat.
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