U.S. Stocks Hit New Highs as Warsh Takes Office, Nvidia Rises for Seventh Day, Cerebras Surges in Debut
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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 all-time 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 Chair, ushering in the "Warsh era" of the Federal Reserve.
The Dow rose 0.75% to close at 50,063.46, the S&P 500 added 0.77% to 7,501.24, and the Nasdaq climbed 0.88% to 26,635.22. Technology shares led the gains with a 1.8% advance, though chip stocks showed significant divergence, as Nvidia ( NVDA) hit a new high after its seventh consecutive session of gains, while Qualcomm ( QCOM) plunged 6.14%, and Micron ( MU) and Intel ( INTC) both fell more than 3%.
The U.S.-China summit released positive signals, boosting market risk appetite. CEOs of 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. Commerce Department has approved 10 Chinese companies, including Alibaba ( BABA ), ByteDance, Tencent, and JD.com ( JD ), to purchase Nvidia H200 chips; distributors and server firms like Lenovo have also received relevant authorizations, easing market concerns over 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 hopes for Warsh to swiftly cut interest rates upon taking office, but April PPI rose 6% year-on-year, exceeding expectations, and oil prices hovered near $100, as inflation remains stubborn. Warsh vowed at his confirmation hearing to maintain the Federal Reserve's "strict independence" and signaled he would seek to shrink the $6.7 trillion balance sheet.
Three Major AI Star Stocks Rally Sharply
Nvidia closed up 4.39% at $235.74, marking its seventh consecutive session of gains. Its market capitalization surpassed $5.7 trillion, just about $300 billion shy of the $6 trillion threshold. The company is set to report earnings on May 20.
The primary driver of this seven-day rally was the direct catalyst of the U.S.-China summit, with the U.S. approving approximately 10 Chinese firms to purchase H200 chips, dissipating market concerns.
Secondly, earnings expectations continue to heat up. Nvidia will release its fiscal 2027 first-quarter financial results on May 20. Citi ( C) projects its quarterly revenue will reach $80 billion, roughly $1.4 billion above the current market consensus.
【Source: TradingKey】
Cisco ( CSCO) saw its shares ignite following its post-market earnings release on May 13, surging nearly 20% in after-hours trading before ultimately closing the day up 13.4%, its largest single-day gain since 2002.
Third-quarter revenue was $15.8 billion, up 12% year-over-year and slightly higher than the $15.6 billion market estimate; adjusted earnings per share were $1.06, also exceeding expectations, with net income of $3.37 billion , up 35% year-over-year.
But what truly ignited the market was the explosive upward revision in AI orders and restructuring signals. Cisco expects fiscal 2026 orders from hyperscale cloud providers to reach $9 billion, an 80% increase from its previous forecast.
Meanwhile, Cisco announced it would lay off fewer than 4,000 employees, representing less than 5% of its total workforce. CEO Chuck Robbins clearly stated this was a necessary adjustment to "focus on the AI era."
【Source: TradingKey】
AI chipmaker Cerebras Systems ( CBRS) made its market debut with an offering price of $185, opening at $350 and quickly rallying to $385 to trigger a circuit breaker. Its intraday market cap briefly crossed $100 billion before finally closing up 68.15% at a valuation of $69.7 billion.
The IPO raised $5.55 billion, making it the world's largest IPO so far in 2026. The company reported revenue of $510 million last year and achieved profitability.
【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 CFTC jurisdiction.
On May 14, Bitcoin prices rebounded sharply after hitting a low of $78,909, briefly breaking above $82,000.
[Source: TradingView]
Meanwhile, gold remained 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, enthusiasm for safe-haven assets waned, leading to capital outflows from precious metals.
[Source: TradingView]
WTI crude oil closed at $101.17 per barrel, finding support near the $100 level. However, due to the war in Iran, crude prices remained elevated overall, continuing to put pressure on the Federal Reserve's inflation control efforts.
[Source: TradingView]
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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