US Stocks Hit New Highs as Warsh Takes Office, Nvidia Gains for Seventh Day, Cerebras Surges in Debut
U.S. stock indices closed higher on May 14, with the Nasdaq and S&P 500 reaching all-time highs. Kevin Warsh officially succeeded Jerome Powell as Fed Chair. Technology shares led gains, with Nvidia hitting a new high, while chip stock performance diverged. Positive U.S.-China summit signals boosted risk appetite, as the U.S. approved Chinese firms’ purchase of Nvidia H200 chips. Nvidia is poised for earnings release, with strong revenue expectations. Cisco reported robust Q3 results and a significant upward revision in AI order forecasts, alongside restructuring plans. Cerebras Systems had a successful IPO, becoming the largest of 2026. Bitcoin rebounded above $81,000 following Senate committee action, while gold weakened on reduced safe-haven demand. WTI crude oil remained elevated due to geopolitical factors.
TradingKey - On May 14, Eastern Time, the three major U.S. stock indices closed higher across the board, with the Nasdaq and S&P 500 both hitting record highs, while the Dow Jones Industrial Average closed above 50,000 for the first time in three months. On the same day, Kevin Warsh officially succeeded Jerome Powell as Fed Chairman, ushering in the 'Warsh era' of the Federal Reserve.
The Dow closed 0.75% higher at 50,063.46, the S&P 500 rose 0.77% to 7,501.24, and the Nasdaq gained 0.88% to 26,635.22. The technology sector led the market with a 1.8% gain, but chip stocks showed clear internal divergence: Nvidia ( NVDA) hit a new record high after its seventh consecutive day of gains, while Qualcomm ( QCOM) slumped 6.14%, and Micron ( MU) and Intel ( INTC) both fell more than 3%.
The U.S.-China summit sent positive signals, boosting market risk appetite. CEOs from companies including Tesla ( TSLA ), Nvidia, and Apple ( AAPL) accompanied Trump on his visit to China, where Xi Jinping pledged to continue opening up.
According to Reuters, citing sources familiar with the matter, the U.S. Department of Commerce has approved 10 Chinese companies, including Alibaba ( BABA ), ByteDance, Tencent, and JD.com ( JD) to purchase Nvidia H200 chips. Distributors and server manufacturers such as Lenovo have also received relevant authorizations, easing market concerns regarding China access risks.
Kevin Warsh takes office by a narrow margin.
Kevin Warsh, 56, was confirmed by the Senate on May 12 by a 54-45 vote—the narrowest margin in history—to officially succeed Jerome Powell.
Trump had previously expressed public hope on several occasions that Warsh would swiftly cut interest rates upon taking office; however, April's PPI rose 6% year-over-year, exceeding expectations, and oil prices hovered near $100, as inflation remained stubborn. Warsh vowed to maintain the Federal Reserve's "strict independence" during his confirmation hearing and hinted at seeking to shrink the $6.7 trillion balance sheet.
Three Major AI Star Stocks Surge
Nvidia closed up 4.39% at $235.74, its seventh consecutive day of gains, with its market capitalization surpassing $5.7 trillion, just about $300 billion shy of the $6 trillion milestone. The company will release its financial results on May 20.
The factors driving this seven-day rally begin with the direct catalyst of the China-U.S. summit, where the U.S. approved approximately 10 Chinese companies to purchase H200 chips, dissipating market concerns.
Secondly, earnings expectations continue to heat up; Nvidia will release its first-quarter fiscal 2027 financial results on May 20. Citigroup ( C) projects that its quarterly revenue will reach $80 billion, roughly $1.4 billion higher than the current market consensus.
[Source: TradingKey]
Cisco ( CSCO) released its earnings report after the bell on May 13, igniting its stock price which soared nearly 20% in after-hours trading before ultimately closing up 13.4% for the day, marking its largest single-day gain since 2002.
Third-quarter revenue was $15.8 billion, up 12% year-over-year and slightly above the market expectation of $15.6 billion; adjusted earnings per share were $1.06, also exceeding forecasts, with net income reaching $3.37 billion , up 35% year-over-year.
However, the real market catalyst was the explosive upward revision of AI orders and signals of restructuring; Cisco expects fiscal 2026 orders from hyperscale cloud service providers to reach $9 billion, an 80% increase from previous projections.
Meanwhile, Cisco announced it would lay off fewer than 4,000 employees, representing less than 5% of its total workforce. CEO Robbins explicitly stated this is a necessary adjustment to "focus on the AI era."
[Source: TradingKey]
AI chipmaker Cerebras Systems ( CBRS) debuted on its first day of trading with an IPO price of $185. The stock opened at $350 and quickly surged to $385, triggering a circuit breaker; its market cap briefly topped $80 billion intraday before ultimately closing up 68.15% with a valuation over $67 billion.
The IPO raised $5.55 billion, making it the world's largest IPO of 2026 to date. The company reported revenue of $510 million last year and turned a profit.
[Source: TradingKey]
Crypto and Commodity Markets
Bitcoin returns to $81,000 as the CLARITY Act passes the Senate Banking Committee, explicitly classifying Bitcoin and Ethereum as commodities under the jurisdiction of the CFTC.
On May 14, Bitcoin prices rebounded sharply after hitting a low of $78,909, briefly surging past $82,000.
[Source: TradingView]
Meanwhile, gold remains under pressure. Spot gold (XAU/USD) closed at $4,652.46 per ounce, continuing to weaken. Following positive signals from the U.S.-China summit, demand for safe-haven assets has cooled, leading to capital outflows from precious metals.
[Source: TradingView]
WTI crude oil closed at $101.17 per barrel, finding support near the $100 threshold; however, impacted by the conflict in Iran, oil prices remain at elevated levels, continuing to complicate the Federal Reserve's inflation management.
[Source: TradingView]
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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