WS #7280

The dominant signal in this window is Cisco's (CSCO) blowout earnings and AI-driven 'networking supercycle' narrative, with shares surging 14% and multiple analysts raising price targets. This is corroborated by CNBC, Keybanc, and Morgan Stanley, with the latter calling the stock still cheap at 25x forward earnings. Separately, Cerebras Systems (CBRS) is set for a massive Nasdaq debut with shares indicated to open at $370-$390, more than double the $185 IPO price, marking the largest IPO of 2026. On the macro front, Treasury Secretary Bessent's comments on 'substantial disinflation' ahead and the Warsh Fed transition provide a counter-narrative to this week's hot CPI/PPI prints, though import/export prices jumped most since 2022 on fuel costs. Geopolitically, a senior US admiral stated Iran's military capabilities have been degraded by 90%, which dampens the oil supply disruption thesis. The Trump-Xi summit continues with discussions on farm and oil trade, while Xi warned Trump on Taiwan. Russia launched a massive strike on Kyiv, killing at least seven, escalating the Ukraine conflict. The AI trade broadens with Applied Materials (AMAT) hitting $440 on analyst upgrades for the AI chip supercycle, while Dynatrace (DT) saw analyst cuts after weak Q1 guidance.