Beijing Summit Overshadows April PPI Print

May 13, 2026 14:17 ET

The Treasury factor declined -0.60% (z=-2.92) after the April Producer Price Index rose 1.4% month-over-month, pushing the 10-year Treasury yield to 4.49%. Mega-cap equities advanced alongside the start of a U.S.-China summit in Beijing. U.S. technology and aerospace executives joined the delegation, supporting gains in the China and Semis factors as they diverged from the broader rate movement.
Factor Return Z-Score Category Direction
Size +0.89% 2.67 Style Large names outperform
China +0.68% 2.67 Theme China exposure outperforms
Momentum +1.00% 1.35 Style 1-year moves trend
Semis +0.65% 1.28 Theme Semiconductors exposure outperforms
Profitability -0.30% -1.87 Style Unprofitable names outperform
Treasury -0.60% -2.92 Theme Treasury exposure underperforms

China and Semiconductor Factor Returns

The China factor rose sharply, gaining +0.68% (z=2.67), as President Trump arrived in Beijing for bilateral talks with President Xi Jinping. The U.S. delegation's inclusion of Nvidia CEO Jensen Huang supported the Semis factor, which gained +0.65% (z=1.28). straitstimes.com KWEB rose +4.67% on 3.76× normal ETF volume, and FXI advanced +2.44% at 3.27× normal volume. Tech ADRs drove the China complex; Alibaba (BABA) rose +6.24% following 40% external revenue growth in its cloud division. businesswire.com In the semiconductor sector, Coherent (COHR) advanced +10.08% and Micron (MU) added +4.12%.

ETF Theme Today 1d Ago 5d Ago 20d Ago
KWEB China +4.67% -1.49% +2.17% -0.75%
SMH Semiconductors +2.48% -2.61% +7.38% +24.17%
FXI China +2.44% -0.37% +2.30% +1.19%
SLV Silver +1.70% +0.71% +19.18% +9.04%
TLT Long-term Bonds -0.33% -0.67% -0.52% -2.55%
KRE Banking -1.37% -0.47% -2.42% -1.53%

Treasury Yields and Rate-Sensitive Sectors

Headline producer prices rose 1.4% month-over-month and 6.0% year-over-year in April. bls.gov The Treasury factor declined sharply by -0.60% (z=-2.92), driving weakness in duration-sensitive assets. Regional banks and utilities underperformed, with KRE falling -1.37% and XLU declining -1.13%. The Energy sector declined -0.71% as market participants monitored diplomatic discussions regarding the Strait of Hormuz.

Financials -1.11% Industrials -0.91% Real Estate -0.82% Utilities -0.72% Energy -0.71%

Software Equities and Silver Spot Prices

The Profitability factor declined -0.30% (z=-1.87), with weakness concentrated in software and IT consulting equities amid changing artificial intelligence capital expenditure expectations. morningstar.com Accenture (ACN) fell -8.04%, and AppLovin (APP) declined -6.68%, with 20% of APP's decline occurring in the final hour of trading. SLV traded at 1.6× normal volume and gained +1.70%. The volume increase follows India's decision to raise silver and gold import duties to 15%. Separately, the Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors, succeeding Jerome Powell.

Economic Context

This document is generated by an AI assistant for informational purposes only. It does not constitute financial advice, an investment recommendation, or an offer to buy or sell any securities. Data is based on proprietary models and recent market information, which may be incomplete or subject to change. Always consult a qualified financial professional before making investment decisions.

For more on factor construction methodology, see www.factorpulse.com/glossary.

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