Welcome to Markets Desk, here's what's moving the needle right now.
Elon Musk made it official on SpaceX's earnings call Wednesday — the company is going exclusively with Nvidia for its GPU needs. Musk called it simply the best AI computer on the market, and Jensen Huang has been returning the praise. For Nvidia, this is more than a supply deal — it's a marquee endorsement that cements its dominance at the infrastructure layer of the AI buildout, and the street will read it that way.
Shifting to trade policy, Trump's tariff strategy is showing signs of unintended consequences. Companies that reshored or diversified away from China are now quietly reinvesting in Chinese suppliers as the tariff structure keeps shifting unpredictably. Alliance Consumer Group out of Texas is one example. When policy signals are inconsistent, businesses optimize for flexibility over ideology, and right now, China still offers the cost structure they need.
And on the macro front, a new paper is drawing attention to a persistent puzzle in Chinese economics — why do credit expansions there keep failing to lift producer prices? The research points to a production-oriented monetary regime that boosts PPI inflation briefly but suppresses it over longer time horizons, a structural dynamic with real implications for global deflationary pressure.
That's the tape. Markets Desk, signing off the floor.
