AI chip maker Cerebras priced its initial public offering far above expectations on Thursday, and the shares rose 68% from there on their first day of trading on the Nasdaq. Many investors clamoring to get a piece of the IPO received fewer shares than they wanted or nothing at all, forcing them to buy stock in the open market. The strong reception comes after investors’ enthusiasm for AI companies and the chip hardware that powers them reached a fever pitch over the past six weeks, helping the S&P 500 and Nasdaq rebound quickly from Iran war concerns, and soar to new records, which they notched again on Thursday. Even the Dow industrials got into the act Thursday, driven by gains in Nvidia and Cisco, the latter of which announced an all-in AI push a day earlier. Cerebras seemed to go public at the perfect time, after a spate of blockbuster first-quarter results from chip companies inspired investors to pile into the stocks. The IPO’s strong performance is a good omen for some of the larger AI companies considering offerings later. “It certainly sends a signal to SpaceX, Anthropic and OpenAI that the window is open if they want to go through with this process,” said Art Hogan, chief market strategist at B. Riley Wealth Management. “You’ve got a double whammy where investors are hungry for IPOs after a lack of them, and a desire for all things AI.”

On Wednesday, the SMI gained 0.8 percent to 13,218 points. SMI was led by shares of Zurich Insurance, having increased by 4.1 percent. First-quarter results were impressive. ABB shares were also in demand, rising 2.1 percent. Holcim added 1.1 percent on the day of its annual general meeting. Technology stocks benefited from hopes of a resolution to the U.S.-China trade dispute. Logitech advanced by 1.5 percent and Ams-Osram 7.9 percent. The weakest performer in the SMI was Givaudan, having dropped by 2.9 percent. Market sources reported that Kepler analysts had downgraded the stock from “Buy” to “Hold.” Among smaller caps, shares of staffing firm Adecco plummeted 16.7 percent following its first-quarter results.

Europe
European stock markets closed higher on Thursday. The Stoxx Europe 600 index rose 0.8% to 616.05 points. In Paris, the CAC 40 advanced 0.9% to 8,082.27 points, and the SBF 120 also climbed 0.9% to 6,152.36 points. In Frankfurt, the DAX 40 gained 1.3%, while the FTSE 100 added 0.5% in London. BURBERRY (-6.7%): The British luxury group announced on Thursday a sharp increase in sales during the last three months of the 2025-2026 fiscal year, as it continues its turnaround plan amid a challenging market environment due to geopolitical instability. Revenue for the fourth quarter of the fiscal year grew 5% year-over-year on a like-for-like basis, in line with analysts’ forecasts. VINCI (+1.1%): The construction and concessions group confirmed Wednesday evening that it had won, as part of a consortium, a €990 million contract to build a rail maintenance center linked to the future British HS2 high-speed rail line. TELEFONICA shares jumped 5.8 percent in Madrid. The company is on track to meet its full-year targets. Revenue and operating profit both narrowly exceeded expectations. The Spanish telecommunications group has confirmed its outlook.

United States
Stocks rose Thursday following economic reports that showed retail sales coming in healthy and jobless claims showing the U.S. labor market remains strong. The Dow Jones Industrial Average reclaimed the 50,000-point mark and closed 0.8 percent higher at 50,063 points. The S&P 500 and the Nasdaq Composite added 0.8 percent and 0.9 percent, respectively. Cisco Systems surged 13% after the networking company showed off its artificial-intelligence credentials with a strong fiscal third-quarter earnings report. The shares surpassed their dot-com era high in December and had risen more than 30% for the year as of Wednesday’s close of trading. Coinbase Global advanced 5.1%. Coinbase and the rest of the crypto industry got a big win when a Senate committee approved a long-sought bill to clarify how digital assets are regulated. Nvidia jumped 4.4% after ending Wednesday’s session at a record high of $225.83. The leading maker of AI chips received U.S. clearance to sell H200 hardware—which is specifically designed to meet American export restrictions—to around 10 Chinese companies, Reuters reported Thursday. However, Nvidia hasn’t made any H200 deliveries because of opposition from Beijing to its domestic companies ordering the hardware, according to the report. Doximity plunged 23% after the telehealth company’s fiscal fourth-quarter profit missed analysts’ targets. Doximity’s fiscal 2027 revenue guidance also fell well short of Wall Street’s expectations. StubHub surged 14% after the online ticket resale marketplace swung to a first-quarter profit. CEO Eric Baker touted strong demand for live events as revenue topped Wall Street estimates.

Asia
Disappointment over the U.S.-China summit between U.S. President Donald Trump and his counterpart Xi Jinping sent Asian stock markets tumbling on Friday. In Tokyo, the Nikkei 225 shed around 1.6 percent to 61,647 points, while in Seoul, the heavily tech-weighted KOSPI plunged by as much as 4.9 percent after initial gains. Shares of the two tech heavyweights, Samsung Electronics and SK Hynix, each slipped more than 6 percent. In Hong Kong, the HSI lost 0.9 percent. The Shanghai Composite, on the other hand, held on to a slight gain.

Bonds
The U.S. bond market isn't waiting around for Kevin Warsh to get settled into his role at the helm of the Federal Reserve. Yields across the roughly $30 trillion Treasury market already were repricing higher, raising interest rates, tightening financial conditions and increasing borrowing costs for the economy. The 10-year Treasury note yield remained largely unchanged at 2.48% amid import price data indicating continued tight monetary policy by the Federal Reserve.

Analysis
Baader upgrades AMS-Osram to Reduce (Sell) – Target: CHF 21.40
RBC upgrades Swatch to Sector Perform (Underperform) – Target: CHF 220 (160)
Berenberg raises Dätwyler target to CHF 167 (143) – Hold

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