Market Report, 2026-05-13

Stocks and bonds traded on different stories today. For stocks, AI continued to drive the narrative, and the trip by business leaders from major U.S. companies to China alongside President Donald Trump boosted market optimism that trade relations between the U.S. and China could improve, potentially securing commercial contracts and stabilizing supply chains. At the same time, Google—the company behind much of the foundation of the modern internet—posted extraordinary earnings across nearly all major business segments, sending its stock price sharply higher.

The Dow Jones Industrial Average, an index relatively less exposed to technology, ended the day down 67 points at 49,693. The NASDAQ rose 1.04% to 29,367, while the S&P 500 gained 0.58% to 7,444. Technology and communication services led the stock market rally.

The bond market, on the other hand, declined following the latest inflation reading. A gauge of prices from producers unexpectedly rose by 1.4%, coming in nearly 1% higher than expected. It is generally believed that rising input costs for businesses are eventually passed on to consumers, at least in part. As a result, the Treasury yield curve steepened. Shorter-term yields remained elevated, with the 5-year and 10-year Treasury yields at 4.12% and 4.47%, respectively. The 30-year yield rose above 5.04%, its highest level since 2007.

In the political arena, Kevin Warsh was confirmed by the Senate as Chair of the Federal Reserve in a 54–45 vote, the slimmest confirmation margin ever for a head of the central bank. Mr. Warsh has proposed a policy shift at the Federal Reserve aimed at reversing the effects of quantitative easing over time by shrinking the $6.7 trillion balance sheet.

Tomorrow, we will receive retail sales data and weekly jobless claims. There could also be new developments in China. Adams Wealth Advisors will keep you informed.