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Markets face another busy week dominated by geopolitical tensions, inflation data, central bank developments and major corporate events. Investors are monitoring renewed friction between the United States and Iran, upcoming U.S. inflation figures, President Donald Trump’s planned trip to China, leadership changes at the Federal Reserve, and the expected stock market debut of AI chipmaker Cerebras Systems (NASDAQ:CBRS).
Efforts to end the conflict between the United States and Iran suffered another setback after Tehran reportedly responded to a U.S.-backed peace proposal with demands that extended well beyond Washington’s initial framework.
Iranian state television reported that Tehran’s proposal called for a broader end to hostilities across the region as well as compensation for war-related damage.
Iran also reiterated its authority over the Strait of Hormuz, the strategically critical shipping corridor through which roughly one-fifth of global oil supplies pass. The waterway has remained heavily restricted throughout the conflict and is currently blockaded by both U.S. and Iranian forces.
Shortly after reports of Iran’s response emerged, Trump reacted on social media, writing: “I don’t like it — TOTALLY UNACCEPTABLE.” No additional details were provided.
Washington has been seeking a rapid ceasefire before moving into wider negotiations surrounding key issues, particularly Iran’s nuclear programme.
Investor attention this week will also turn toward the latest U.S. consumer price index figures, scheduled for release on Tuesday.
The April inflation report is expected to provide further insight into how rising energy costs linked to the Iran conflict are affecting broader inflationary pressures in the U.S. economy. In March, inflation accelerated sharply, driven largely by higher gasoline prices.
Economists currently expect headline annual inflation to rise to 3.7% in April from 3.3% previously. On a monthly basis, however, price growth is forecast to slow to 0.6% from 0.9%.
Core CPI — which excludes more volatile components such as food and energy — is projected to edge slightly higher by 0.3%. Markets continue to monitor whether higher crude oil prices are beginning to impact a wider range of consumer goods and services beyond fuel.
Trump is expected to travel to China between May 13 and 15 for a summit with Chinese President Xi Jinping, according to Chinese state media.
The visit, which had previously been postponed, will mark the first major trip to Beijing by a U.S. president in nearly a decade and is aimed at easing tensions between the world’s two largest economies.
In addition to discussions surrounding Iran, Trump and Xi are expected to address trade tariffs and Taiwan. Reports also suggest both countries may seek to extend the trade truce agreed last October.
Federal Reserve Chair Jerome Powell’s term leading the U.S. central bank is scheduled to conclude on Friday.
Trump has nominated former Federal Reserve Governor Kevin Warsh to replace Powell, with the Senate widely expected to approve the appointment this week.
Powell, who has frequently faced criticism from Trump over the Fed’s reluctance to aggressively cut interest rates, has indicated that he intends to remain on the Federal Reserve Board after stepping down as chair.
His current term as a Fed governor runs through 2028. Powell has suggested that remaining in the role would allow him to monitor whether Trump’s legal challenges directed at the Federal Reserve eventually subside.
Artificial intelligence semiconductor company Cerebras Systems is preparing to launch its initial public offering on Thursday under the ticker CBRS.
According to Reuters, the company is considering increasing both the size and pricing of the IPO as investor demand for the shares continues to strengthen.
Reports indicate Cerebras may raise its proposed price range to between $150 and $160 per share, up from the previously discussed $115 to $125 range. The company is also reportedly planning to increase the number of shares offered to 30 million from 28 million.
The planned IPO comes amid rapid growth in AI adoption, which continues to drive demand for high-performance processors produced by companies such as Cerebras.