PPI Surprise Lifts Yields; AI Rally

May 13, 2026 at 21:00 UTC

4 min read

Government bond certificate and stock charts reflecting PPI surprise impact on yields and AI stocks NBIS

Key Points

U.S. PPI surprised higher and pushed Treasury yields up, reinforcing a higher-for-longer Fed narrative and pressuring rate-sensitive sectors.
Nebius's Q1 beat and disclosures—including a Meta capacity agreement and a $2bn NVIDIA equity investment—drove a sharp rally in NBIS and AI-infrastructure names.
State Street's suspension and liquidation of four ETFs compressed the redemption window and created targeted selling pressure in affected ETF baskets and holdings.
U.S. majors traded mixed: S&P and Nasdaq rose while the Dow slipped as markets absorbed the PPI-driven rise in Treasury yields.

Global Market Summary

The U.S. major indexes showed mixed action: SPX rose 0.58% and ^IXIC outperformed, up 1.20%, while DJIA slipped 0.14% as markets absorbed a U.S. PPI report that was broadly above consensus and pushed Treasury yields higher. European benchmarks closed higher with DAX up 0.76%, UKX up 0.58% and FRA40 up 0.35% as corporate results supported risk appetite. In Asia the provided 000001.SS was unchanged (0.0%).

Top Movers

RVI led gainers at +37.80% while OUST (+26.09%), VNET (+25.06%), TSEM (+22.61%) and AAOI (+18.49%) rounded out top advancers. Biggest decliners included WIX (-27.10%), REZI (-17.91%), BIRK (-12.86%), CAI (-12.35%) and BGSI (-12.13%). Sector leadership came from technology (VGT +1.02%) and communication services (XLC +0.78%); financials (XLF -1.14%), utilities (XLU -1.15%) and real estate (VNQ -0.83%) lagged.

Macro highlights

U.S. PPI for April rose 1.4% month-over-month and 6.0% year-over-year, with core PPI rising and energy and trade margins the largest contributors. The report pushed Treasury yields higher (two-year around 4.0% and the 10-year nearer 4.5%) and reinforced a higher-for-longer Fed narrative, pressuring rate-sensitive sectors.

News that moved markets

Nebius Group's Q1 beat and disclosures — including a reported five-year $27bn capacity agreement with Meta and a $2bn equity investment from NVIDIA — drove a sharp rally in NBIS and related AI-infrastructure names. Tencent's Q1 results and management commentary on ramped AI investment, elevated capex and ongoing buybacks highlighted the trade-off between near-term margin pressure and longer-term AI monetization. State Street's announcement to suspend and liquidate four ETFs at the open compressed the redemption window and created targeted selling pressure in affected ETF baskets and underlying holdings.

Upcoming session watchlist

GB GDP Growth Rate YoY Prel (Q1) — consensus 0.8% vs 1% prior, May 14, 06:00 AM | Shows pace of economic growth compared with the same quarter a year earlier.
GB GDP Growth Rate QoQ Prel (Q1) — consensus 0.6% vs 0.1% prior, May 14, 06:00 AM | Indicates quarterly change in economic output and near-term growth momentum.
GB GDP MoM (MAR) — consensus -0.2% vs 0.5% prior, May 14, 06:00 AM | Tracks monthly change in output, highlighting very recent activity momentum.
US Retail Sales MoM (APR) — consensus 0.5% vs 1.7% prior, May 14, 12:30 PM | Measures monthly change in consumer spending and signals demand momentum.

Key Takeaways

Two-year yields rose near 4.0% and the 10-year nearer 4.5%, reflecting PPI-driven repricing of rate expectations.
Technology and communication services led gains, while financials, utilities and real estate lagged amid higher yields and earnings-driven flows.
S&P and Nasdaq rose while the Dow slipped; European benchmarks closed higher as corporate results supported risk appetite.
RVI led gainers while WIX was the largest decliner, underscoring idiosyncratic swings among individual equities.