LONDON, May 14 (Reuters) - What matters in U.S. and

global markets today by Amanda Cooper.

The stock market is a little on the weaker side today,

with U.S. futures mostly steady, as investors take a breather

from this week's blistering rally. Global trade tensions might

finally be easing, money is flowing back into the glittering AI

sector and the prospect of potentially bullish Federal Reserve

rate cuts is back on the table.

Mike is out today, but check out his latest column to find out

why U.S. budget anxiety could quickly replace the trade war

tensions.

Today's Market Minute

* President Donald Trump kicked off his trip to the Gulf on

Tuesday with a surprise announcement that the United States will

lift long-standing sanctions on Syria, and a $600 billion

commitment from Saudi Arabia to invest in the U.S.

* Tesla plans to start shipping components from China to the

U.S. for the production of Cybercab and Semi trucks from the end

of this month, after the U.S. and China reached a truce over

tariffs.

* How will the trade war de-escalation impact China's mammoth

manufacturing sector and the country's energy needs? Read

Reuters' columnist Gavin Maguire's latest piece to learn which

key metrics you should be tracking.

* The fog of uncertainty created by Trump's trade war may be

lifting, but it's leaving investors with a lingering question:

what was the point of all that chaos around what the president

termed "Liberation Day"? Check out Jamie McGeever's analysis in

his latest column.

* The comprehensive trade deal announced by the U.S. and UK

governments last week was a damp squib, but that shouldn't worry

Downing Street. The bigger prize is closer collaboration with

the European Union, and that could accelerate after the UK-EU

summit next week. Find out more in the column from Panmure

Capital's Joachim Klement.

The Magnificent 7 Ride Back into Town

This week's stock market rally could well go down in Wall

Street history as one of the most epic on record. The S&P 500 is

up by more than 20% in the 36 days since it hit a 15-month low

on April 7. The index took just 16 days to hit the

20%-recovery-from-the-lows mark in 2020 and 18 days in 2009. The

difference this time around is there is no tidal wave of

monetary or fiscal stimulus helping to grease the wheels of the

rally. The bulls aren't just back, they're in the driving seat

and the Magnificent 7 - Apple, Amazon, Microsoft, Nvidia, Meta

and Tesla - are the engine.

Investors have an affinity for shiny things. This week's

cocktail of market-friendly catalysts, including the 90-day halt

to the U.S./China trade war, a benign reading of inflation and a

raft of headline-grabbing investment deals from the Middle East,

where Trump happens to be visiting, have set the stage for Mag 7

mania once again.

Nvidia has announced it will sell hundreds of thousands of

its artificial intelligence chips in Saudi Arabia. Chip designer

Advanced Micro Devices has unveiled a $10 billion collaboration

with Humain, the Saudi sovereign wealth fund's newly minted AI

startup, while the Saudi government itself made a commitment to

Trump to invest $600 billion in U.S. companies.

If the Mag 7 were a major drag on the broader S&P on the way

down earlier this year, they're proving to be a major boon on

the way back up. Most world indices have recovered the bulk of

the losses triggered by the April 2 "Liberation Day" sell-off.

Since then, the Roundhill Magnificent 7 exchange-traded fund

has gained 11%, far outpacing the 4.5% rise in the S&P

500 since then. By contrast, the equal-weight S&P, which strips

out the oversized influence of the megacaps, is barely up 1%.

Tesla has rejoined the $1-trillion club this week, having

dropped out in late February, while shares in Nvidia, whose name

has become synonymous with the AI boom, have gained nearly 18%.

Chart of the day

Zooming out, so far this year the Mag 7 are lagging the

rest of the market. But at this rate, they're not only catching

up, they're powering the May rally.

Today's events to watch

* Trump tours the Middle East; Gulf Cooperation Council

takes place in Riyadh, Saudi Arabia

* Federal Reserve Board Governor Christopher Waller

addresses an event in Rabat, Morocco

* Federal Reserve Vice Chair Philip Jefferson speaks on the

economic outlook

* Federal Reserve Bank of San Francisco President Mary Daly

participates in fireside chat before the California Bankers

Association

* Cisco Systems fiscal Q3 2025 earnings after the bell

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.

(Writing by Amanda Cooper, Editing by Anna Szymanski)