Wall Street continued to break records this week, despite no peace deal between the U.S. and Iran. Though the S&P 500 (SPX) and Nasdaq Composite (IXIC) pulled backa couple times during the week amid Middle East unrest and a tech slide, the indexes saw more record closes as oil prices cooled off, the AI sector enjoyed tailwinds from Advanced Micro Devices' (AMD) report, and the ADP jobs report impressed. At this point, the SPX and IXIC are headed for their sixth-straight weekly gain, while the Dow Jones Industrial Average (DJI) eyes its fifth weekly win in six weeks.
Tech Grips the Spotlight
AMD started the week with a downgrade amid valuation concerns, while Datadog (DDOG) stock crossed over a key trendline before earnings. Broadcom (AVGO) and Applied Materials (AMAT) stood out as some of the best names to own in May, and Blackberry (BB) attracted positive attention thanks to a pivot into the software sector. Meanwhile, GameStop's (GME) offer to buy eBay (EBAY) triggered an options frenzy.
Pinterest (PINS) enjoyed a beat-and-raise, but Snapchat parent Snap (SNAP) issued disappointing guidance. Super Micro Computer (SMCI) stock skyrocketed thanks to a bullish forecast, yet quantum computing giant IonQ (IONQ) brushed off a 755% sales jump. Elsewhere, Invesco QQQ Trust (QQQ) seemed unstoppable, with traders taking notice.
Beyond Tech
There were plenty of notable developments outside of tech, too. Pfizer (PFE) reported a quarterly win, while streaming giant Netflix (NFLX) looks ready for its next leg higher. Eli Lilly (LLY) and Cleveland-Cliffs (CLF) also flashed historically bullish signals, and Expedia's (EXPE) stock traveled lower on weak guidance. Finally, McDonald's (MCD) and Shake Shack (SHAK) attracted attention in the options pits after earnings, with the former hitting a 52-week low before its report.
CPI, PPI Readings Coming Up
Inflation data is due out next week in the form ofconsumer price index (CPI) and producer price index (PPI) readings. Earnings season will begin to slow down, but reports from Alibaba (BABA), Applied Materials (AMAT), Cisco Systems (CSCO), Hims & Hers Health (HIMS), On Semiconductor (ONON), Rigetti Computing (RGTI), and Under Armour (UAA) are still on deck. Looking ahead, these stocks may benefit from SPX momentum, which could override vulnerability.
