The Daily Wrap - May 15, 2026

The President's summit with Chinese President Xi Jinping concluded with a fragile truce, but ongoing tensions over Taiwan and the war in Iran are driving oil prices higher. On Wall Street, the impact of artificial intelligence was on full display as Figma's stock soared on strong results, while investor Bill Ackman revealed a major new bet on Microsoft's AI potential. Other major stories include the end of Jerome Powell's eight-year term as Federal Reserve Chair and Starbucks' announcement of hundreds of corporate layoffs to cut costs.  

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From Phoenixstra Pro in Tampa, it's Friday, May 15th, and I'm Rachel Anderson with the Daily Rap. The president departed Beijing today, with both the US and China declaring a desire for strategic stability. But beneath the surface of the carefully managed two-day summit, an intense rivalry remains. Chinese leader Xi Jinping issued a stark warning that any mishandling of tensions over Taiwan could put the relationship in great jeopardy. On the economic front, the president announced China has agreed to purchase 200 Boeing aircraft, a significant order, but less than half the 500 planes some analysts had anticipated, which sent Boeing's stock lower. The president also told reporters that American farmers would be happy with new soybean purchases and that he discussed lifting sanctions on Chinese companies that buy oil from Iran. However, the summit failed to produce a breakthrough on the Middle East war. While both sides agreed that the vital Strait of Hormuz must remain open, China's foreign ministry issued a blunt statement that the war should never have been started in the first place. With the U.S. blockade of Iranian ports still in place and diplomacy stalled, oil prices are climbing. Brent Crew jumped to over $108 a barrel, while West Texas Intermediate rose to nearly $104. Analysts warn that the undersupplied market will keep inflationary pressures high, creating another headache for consumers and central banks. Today marks the final day of Jerome Powell's term as Federal Reserve Chair. As incoming chair Kevin Walsh prepares to take the helm, Powell's legacy is being defined not just by his aggressive interest rate hikes to fight inflation, but by his relentless behind-the-scenes effort to build relationships on Capitol Hill. According to new research, Powell met with members of Congress far more frequently than his predecessors, a strategy seen as crucial for protecting the Fed's independence from political pressure, particularly during his clashes with the White House. That political skill may have proven critical in recent weeks, helping him weather a now-dropped criminal investigation by the current administration. Billionaire activist investor Bill Ackman has a new target, Microsoft. In a post this morning, Ackman revealed his hedge fund, Pershing Square, has built a major position in the tech giant, calling it a highly compelling valuation. Ackman argues that investors are underestimating Microsoft, noting its stock has fallen 17% this year. He believes the current share price doesn't reflect the value of its 27% stake in OpenAI, which he values at around $200 billion. Ackman dismissed concerns about competition and the durability of Azure's growth, stating that Microsoft's M365 software is too deeply embedded in enterprises to be easily displaced. Shares of Figma rose over 13% after the design software maker crushed first-quarter earnings expectations. The company reported a 46% jump in revenue and a 54% increase in paid customers, driven by strong adoption of its AI features. Figma also raised its full-year guidance, signaling that its strategy to integrate AI is successfully fighting back against investor fears that the technology would make its software obsolete. Starbucks announced it is laying off 300 U.S. corporate employees and is reviewing its international teams. The move is part of CEO Brian Nichols' turnaround plan to sharpen focus and lower costs. The coffee giant expects to take a $400 million restructuring charge related to the layoffs and office closures. U.S. Treasury yields shot up today following a jump in energy prices. The 10-year is a 4.58%, the two-year yield is at 4.08%, and the 30-year bond yield is at 5.11%. And now let's check the scoreboard. Wall Street is heading into the weekend on a sour note. Midday the SP was down almost 1%, the Dow was also down around 1%, and the NASDAQ was down roughly 1 2 tenths percent. That's all for your daily wrap today. I'm Rachel Anderson from Phoenixstra Pro turning data into stories.