Friday's U.S. session brings a concentrated focus on AI, China headlines, and fresh drug data, with Cisco, Nvidia, newly-listed Cerebras, Boeing, Ford, and Biogen all in the spotlight. Thursday's tech momentum propelled the S&P 500 and Nasdaq to new records, while the Dow closed at 50,063.46.
The timing is crucial as markets are moving as much on policy expectations as on earnings now. On Polymarket, odds for a U.S.-China tariff deal by May 31 stand at 57%, while a separate market sees a 72% probability that the Federal Reserve will not cut rates in 2026. Traders are factoring in some hope for trade easing, but bets on lower rates are thin.
Today's lineup isn't just about stocks jumping around. Cisco is showing whether AI dollars are reaching beyond chip makers. Nvidia is in the spotlight as China policy shifts from talk to real shipments. Boeing's outcome hangs on summit negotiations. Ford is trying to prove buyers want its storage tech. And Biogen—investors are weighing just how much disappointment they can stomach after that mixed trial.
Cisco Leads Off
Cisco announced nearly 4,000 job cuts as it pivots investments into AI and other growth bets, while raising its annual revenue target higher after racking up $5.3 billion in AI infrastructure orders from hyperscalers this fiscal year. CEO Chuck Robbins called for "focus, urgency" to stay ahead in AI. Direxion's Ryan Lee noted the spending spree is turning into "more than just chips."
Nvidia's China Sensitivity
Nvidia's fortunes remain closely tied to U.S.-China politics. U.S. Trade Representative Jamieson Greer told reporters chip export controls barely came up during recent talks in Beijing. Reuters added that roughly 10 Chinese firms have received a green light from U.S. officials to buy Nvidia's H200 AI processor—though none have received shipments yet. Until those shipments show up, Nvidia shares remain vulnerable to any new developments on China policy, even with the sector's recent run.
Cerebras IPO Debuts
Cerebras delivered the year's largest IPO, raising $5.55 billion. Shares debuted at $350, far above the $185 offer, putting the AI chipmaker's fully diluted valuation at roughly $106.75 billion. CEO Andrew Feldman sees AI demand surging—his word: "explode." But Nicholas Smith of Renaissance Capital flagged the valuation as "quite high even out to 2028."
Boeing's China Headache
Boeing shares slipped after President Donald Trump put the number of jets China would buy at 200—well short of the 500-plane deal sources had floated was on the table. Airbus, meanwhile, has been making inroads in China over the last ten years. "Less than hoped for," is how Matt Akers at BNP Paribas summed up the market mood after the pledge, with investors clearly disappointed.
Ford Pushes into Energy Storage
Ford is pushing into a new AI-adjacent area: energy storage. The stock jumped as investors zeroed in on Ford Energy, the division building storage systems with lithium iron phosphate batteries—a cheaper chemistry, typically found in large stationary setups—for use by data centers, utilities, and industrial buyers. Morgan Stanley analysts described Ford's licensing agreement with CATL as an "underappreciated strategic competitive advantage," with initial deliveries slated for late 2027.
Biogen's Alzheimer's Push
Biogen is in focus after announcing plans to push its Alzheimer's candidate, diranersen, into late-stage trials. This move comes despite the drug failing to hit the main target in its mid-stage study—higher doses didn't outperform lower ones. Diranersen targets the tau protein, which has been tied to Alzheimer's progression. Bernstein's Christian Moore summed it up: "not a worst-case outcome," he said, but still a "net-negative."
Market breadth remains a concern. FTSE Russell figures show almost half of the FTSE All-World Index's April gains were driven by just 13 AI-focused stocks. Adam Turnquist at LPL Financial pointed out that only 53% of S&P 500 constituents are trading above their 200-day moving averages—a weaker showing than typically seen at record highs. Should AI-linked shares falter, there's not much support left elsewhere.
