Hi YXI friends,

After a “successful” trip to China, during which Trump met Xi with a fleet of US business leaders, attention is now back on the US-Iran conflict.

The Strait of Hormuz is still under a stalemate closure, pushing oil prices and consequently global interest rates higher.

Last Friday’s market selloff was not an isolated bond-yield spike event - yields had been rising all week. It was rather that the market has turned its attention back to macro fundamentals after running out of other focus points.

The rising interest rates and elevated oil prices should put pressure on Trump to hasten a conclusion on the Iranian negotiations. Otherwise, they could hurt the midterms.

Housekeeping:

I am away between Thursday and Monday. I will publish the AI Infrastructure charts tomorrow and the AI Application charts on Wednesday. We will skip Friday’s video and resume on Tuesday, May 26.

I am also thinking about bringing an Energy play into the fold, as it is also a crucial part of the AI infrastructure. Any feedback or comments are welcome

For ETF flows, we will update them weekly and share them at the beginning of the week to filter out noise.

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