Briefing.com

Daily Sector Wrap

Updated: 05-May-26 16:30 ET
Closing Market Summary: Tech-led rally sends stocks to new record highs

The stock market rebounded nicely from yesterday's weakness, with the S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) notching fresh record highs, while the DJIA (+0.7%) notched a similar gain for the day. The Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.3%) outperformed, underscoring the risk-on tone.

The major averages were supported by broad strength, with all eleven S&P 500 sectors finishing at or above their flatlines. A solid gain from the top-weighted information technology sector (+1.6%) contributed to the index-level gains, as semiconductor names outperformed after a weaker showing yesterday.

The PHLX Semiconductor Index finished 4.4% higher, with Intel (INTC 108.18, +12.40, +12.95%) a notable standout after Bloomberg reported Apple (AAPL 284.18, +7.35, +2.66%) may source chips from the company for some of its products. Memory names Micron (MU 640.45, +64.00, +11.10%), Sandisk (SNDK 1406.32, +150.46, +11.98%), and Western Digital (WDC 465.26, +22.90, +5.18%) all extended their post-earnings strength by notching fresh record highs today, while Advanced Micro Devices (AMD 355.26, +13.72, +4.02%) also captured a nice gain ahead of its earnings release after the close.

Meanwhile, software names turned in mixed performances, with the iShares GS Software ETF finishing 0.2% lower. Palantir Technologies (PLTR 135.91, -10.12, -6.93%) was a laggard despite an impressive beat-and-raise earnings report.

Elsewhere, the materials sector (+1.7%) captured the widest gain across S&P 500 sectors after finishing at the bottom of the leaderboard yesterday. Nearly all of the sector's components traded higher, with DuPont (DD 49.23, +3.82, +8.41%) a standout after earnings, while a rebound in metals prices also contributed to the advance.

Gains were relatively modest elsewhere, as the industrials sector (+0.9%) was the only other S&P 500 sector to capture a gain wider than 0.5%. Rockwell Automation (ROK 435.93, +35.62, +8.90%) and Expeditors Intl (EXPD 152.97, +13.26, +9.49%) led the strength after solid earnings reports, with the latter rebounding from yesterday's sharp sell-off across courier names after Amazon (AMZN 273.52, +1.47, +0.54%) announced the launch of Amazon Supply Chain Services.

Other notable post-earnings gainers included Waters (WAT 342.53, +40.65, +13.47%) and Pinterest (PINS 22.28, +1.43, +6.86%), while Shopify (SHOP 107.62, -19.94, -15.63%) and Fiserv (FISV 57.28, -5.53, -8.80%) moved sharply lower after their own earnings reports.

On the geopolitical front, headlines were relatively quiet, with Trump administration officials telling reporters at a Pentagon press conference that the recent strikes from Iran do not count as a violation of the ongoing ceasefire. Secretary of State Marco Rubio said Operation Epic Fury is "over" and that the U.S. has moved on to "Project Freedom," which is a defensive operation to guide stranded ships through the Strait of Hormuz.

Crude oil futures settled today's session $4.12 lower (-3.9%) at $102.16 per barrel.

With earnings continuing to deliver solid growth and yesterday's geopolitical tensions fading into the background, the market was primed for a buy-the-dip rebound after starting the week on a softer note. Today's advance reinforces the market's push into record territory, with renewed leadership from technology and semiconductor names helping drive the move higher.

U.S. Treasuries showed some Tuesday resilience, reclaiming a portion of their losses from the start of the week. The 2-year note yield settled down two basis points to 3.94%, and the 10-year note yield settled down three basis points to 4.42%.

  • Russell 2000: +14.6% YTD
  • S&P Mid Cap 400: +10.8% YTD
  • Nasdaq Composite: +9.0% YTD
  • S&P 500: +6.0% YTD
  • DJIA: + 2.6%

 Reviewing today's data:

  • March Trade Balance -$60.3 bln (Briefing.com consensus -$60.3 bln); Prior was revised to -$57.8 bln from -$57.3 bln
    • The key takeaway from the report is that it has yet to fully capture the pickup in crude oil exports from the U.S. that has been driven by the Strait of Hormuz blockade. That pickup should be considerably higher in the next report and a boon for Q2 GDP growth forecasts.
  • April S&P Global U.S. Services PMI - Final 51.0; Prior 51.3
  • April ISM Non-Manufacturing Index 53.6% (Briefing.com consensus 53.9%); Prior 54.0%
    • The key takeaway from the report is that there was no real change in the key trends for the services sector, which include a modest expansion, contracting employment, and increasing prices.
  • March JOLTs - Job Openings 6.886 mln; Prior was revised to 6.922 mln from 6.882 mln
  • February New Home Sales 635K; Prior was revised to 583K from 587K, March New Home Sales 682K (Briefing.com consensus 654K); Prior 635K
    • The key takeaway from the report is that the bulk of the increase in sales was driven by lower-priced homes, which drove down average selling prices, but at the same time, the median price of a new home also fell. Altogether the pricing indications reflect some improved positioning for buyers.

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