[BRIEFING.COM] Sustained enthusiasm across the AI trade sent the S&P 500 (+0.8%) and Nasdaq Composite (+0.9%) to fresh record highs again today, while the DJIA (+0.8%) reclaimed and closed above the 50,000 mark.

There was relatively firmer participation across the broader market today, which helped the DJIA keep pace with the other major indices, but its gain is also largely due to an impressive post-earnings rally from Cisco (CSCO 115.53, +13.66, +13.41%). The company decidedly topped earnings expectations and issued much better-than-expected Q4 guidance driven by accelerating AI infrastructure demand and broad-based networking strength.

Cisco's gain made it the top-performing component of the information technology sector (+1.9%) and the S&P 500 as a whole.

The world's largest company by market capitalization, NVIDIA (NVDA 235.74, +9.92, +4.39%), also posted a solid gain today that leaves it on the doorstep of a double-digit gain for the week. Reuters reported that the U.S. approved sales of the company's H200 chip to ten Chinese companies, while UBS raised its price target on the stock to $275 from $245.

NVIDIA's gain helped the PHLX Semiconductor Index (+0.5%) finish higher despite some profit-taking after yesterday's rally. Meanwhile, software stocks outperformed, sending the iShares GS Software ETF 2.3% higher. 

The eagerly anticipated IPO of Cerebras Systems (CBRS 311.07, +126.07, +68.15%) added to today's AI momentum, with the upsized 30.0 million-share deal pricing at $185 per share, well above the already raised $150-$160 range, before opening at $350 for an 89% first-trade gain. The deal underscores the huge appetite for pure-play AI infrastructure exposure, but it also leaves investors staring at a nose-bleed valuation with a market cap near $70 billion and a price-to-sales multiple close to 140x.

Elsewhere, gains were more modest, with six total S&P 500 sectors finishing higher. The energy sector (+0.8%) was a top performer amid a modest increase in oil prices, though geopolitical headlines remained muted today, with the summit between President Trump and Chinese President Xi producing little in the way of surprises.

Mega-cap stocks outside of the technology sector faced some profit-taking after yesterday's rally, which contributed to weakness in the consumer discretionary (-0.3%) and communication services (-0.2%) sectors.

The materials (-0.8%) and real estate (-0.6%) sectors underperformed.

Outside of the S&P 500, the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.4%) captured decent gains.

Overall, it was another winning session for stocks as the AI trade was supported by several catalysts, while the broader market fared better than in recent sessions marked by narrow leadership. Weaker breadth has prompted some analyst concerns around stretched valuations and the potential for speculative excess across AI-linked names, but the exceptionally strong Q1 earnings season and continued flow of supportive catalysts have helped reinforce confidence in the rally and provide meaningful fundamental support for many of the market's leaders. Additionally, investors have consistently stepped in to buy recent pullbacks across semiconductors and mega-cap tech stocks, reinforcing the market's momentum and helping keep the major averages near record territory.

U.S. Treasuries finished Thursday on a mostly higher note, though intraday action saw a pullback in shorter tenors while the long end outperfo rmed, hanging onto the bulk of today's starting gains. The 2-year note yield finished unchanged at 3.99%, and the 10-year note yield settled down two basis points to 4.46%.  

• Russell 2000: +15.2% YTD
• Nasdaq Composite: +14.6% YTD
• S&P Mid Cap 400: +11.0% YTD
• S&P 500: +9.6% YTD
• DJIA: +4.2% YTD

Reviewing today's data:

• April Retail Sales 0.5% (Briefing.com consensus 0.4%); Prior was revised to 1.6% from 1.7%, April Retail Sales, ex-auto 0.7% (Briefing.com consensus 0.4%); Prior 1.9%
  • The key takeaway from the report is that solid spending activity was seen across most retail categories in April, which is when consumers were digesting the gas price shock from the Iran war. Excluding auto and gasoline station sales, retail sales were up 0.5% month-over-month.
• Weekly Initial Claims 211K (Briefing.com consensus 208K); Prior was revised to 199K from 200K, Weekly Continuing Claims 1.782 mln; Prior was revised to 1.758 mln from 1.766 mln
  • The key takeaway from the report is that, even though initial and continuing jobless claims were up in the latest week, neither has risen to a level that would ring alarm bells about a serious deterioration in the labor market.
• April Import Prices 1.9%; Prior was revised to 0.9% from 0.8%
• April Import Price ex-oil 0.8%; Prior was revised to 0.2% from 0.6%
• April Export Prices 3.3%; Prior was revised to 1.5% from 1.6%
• April Export Prices ex-ag. 3.4%; Prior was revised to 1.6% from 1.7%
• March Business Inventories 0.9% (Briefing.com consensus 0.3%); Prior 0.4%

[BRIEFING.COM] The major averages remain firmly higher as the market enters the final half hour of the session.

Applied Materials (AMAT 444.86, +8.25, +1.89%) will look to keep the tech momentum rolling with its Q2 earnings report after the close.

Semicap names continue to benefit as AI infrastructure and data-center buildouts drive increasing demand for advanced semiconductor manufacturing capacity. As such, AMAT enters its Q2 report with elevated expectations. The key focus will be guidance, particularly whether the outlook supports continued acceleration into the back half of CY26. Commentary around AI-related tailwinds will also be important, especially in higher-value areas such as DRAM/HBM, leading-edge logic, and advanced packaging.

Peer commentary from Lam Research (LRCX 300.23, +4.79, +1.62%) has been encouraging as well, with the company raising its WFE outlook and positioning CY27 as another year of growth.

Overall, AMAT appears well-positioned for the AI-driven equipment cycle, but with shares already up sharply, the stock likely needs strong execution, solid guidance, and constructive forward commentary to keep momentum intact. Any softness in guidance or less bullish commentary around the back-half ramp could introduce some weakness.

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+0.9%), and DJIA (+0.7%) are little changed from previous levels as the market enters the final hour of the session. Gains remain largely driven by tech leadership, while action is choppy in the broader market.

Cerebras Systems (CBRS 321.99, +136.99, +74.05%) IPO was a blockbuster, with the upsized 30.0 million-share deal pricing at $185 per share, well above the already raised $150-$160 range, before opening at $350 for an 89% first-trade gain. The deal underscores the huge appetite for pure-play AI infrastructure exposure, but it also leaves investors staring at a nose-bleed valuation with a market cap near $70 billion and a price-to-sales multiple close to 140x.

CBRS is positioning itself as a differentiated AI infrastructure company built around its wafer-scale processor architecture, which it says can deliver faster inference and lower latency than traditional GPU-based systems. That pitch has resonated because the market is increasingly focused on inference and real-time responsiveness, where CBRS believes its hardware has a real edge. Investor enthusiasm is also being fueled by strategic validation from OpenAI and Amazon Web Services, both of which help legitimize the platform and broaden the company's growth narrative.

[BRIEFING.COM] The S&P 500 (+0.70%) is in last place among the major averages, up about 52 points.

Briefly, S&P 500 constituents J.B. Hunt Transport (JBHT 252.43, +14.63, +6.15%), TKO Group Holdings (TKO 195.50, +11.80, +6.42%), and Robinhood Markets (HOOD 80.89, +4.14, +5.39%) pepper the top of the standings. JBHT rallies alongside peers after reports of a sharp spike in truckload spot rates to cycle highs, signaling tighter trucking capacity and stronger near-term pricing power for asset-based carriers, while TKO benefits from insider purchases by the CEO, CFO, and COO worth approx. $4.5 mln, with HOOD jumping after strong April metrics showing accelerating growth in funded customers, platform assets, and trading volumes, alongside news that prediction-market expansion in the brokerage space is boosting sentiment around retail trading activity.

Meanwhile, Jack Henry (JKHY 133.25, -8.18, -5.78%) is today's worst laggard, continuing its post-earnings decline now down more than -11% since the report.

[BRIEFING.COM] The Nasdaq Composite (+0.99%) is in first place on Thursday afternoon, up about 262 points.

Gold futures settled $21.40 lower (-0.5%) at $4,685.30/oz, as hotter-than-expected U.S. inflation data lifted Treasury yields and the dollar, reducing expectations for near-term Federal Reserve rate cuts. Investors also monitored the Trump-Xi meeting in Beijing, though the talks provided little new clarity on trade or geopolitical tensions.

Meanwhile, the U.S. Dollar Index is up about +0.3% to $98.81.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.62%) is in second place on Thursday afternoon, up about 307 points.

A look inside the DJIA shows that Cisco (CSCO 114.25, +12.38, +12.15%), NVIDIA (NVDA 233.96, +8.13, +3.60%), and IBM (IBM 219.70, +5.06, +2.36%) are some of today's top gain getters.

Meanwhile, Boeing (BA 231.31, -9.29, -3.86%) is underperforming.

The DJIA is now up +0.79% on the week.

[BRIEFING.COM] Stocks are setting fresh records today as a wave of developments adds enthusiasm to an already hot tech trade, while the broader market sees an improvement in participation from recent sessions. The S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) are charting fresh record highs, while the DJIA (+0.7%) has reclaimed the 50,000 mark.

The top-weighted information technology sector (+1.7%) is pacing the gains, led by an impressive post-earnings surge in Cisco (CSCO 115.54, +13.67, +13.42%). Notably, the company issued strong upside guidance that is driven by accelerating AI infrastructure demand.

NVIDIA (NVDA 235.53, +9.70, +4.30%) adds support, homing in on a double-digit week-to-date gain after the U.S. approved H200 chip sales to ten Chinese companies, while UBS raised its price target on the stock to $275 from $245.

NVIDIA's gain helps the PHLX Semiconductor Index remain higher (+0.7%) despite some profit-taking across other notable components after yesterday's rally. Meanwhile, the iShares GS Software ETF (IGV 90.60, +2.00, +2.26%) holds a wider gain as packaged software names are among the sector's best performers.

Gains are more modest outside of the technology sector, but participation is stronger in the broader market compared to recent sessions.

The financials sector (+0.7%) holds a nice gain, with Coinbase Global (COIN 220.29, +18.49, +9.16%) and Robinhood Markets (HOOD 81.26, +4.52, +5.88%) leading the advance as bitcoin surges over 2.5%, while investment managers and insurance names also outperform.

Meanwhile, the materials sector (-0.7%) lags, while the communication services sector (-0.3%) faces some pressure in Alphabet (GOOG 396.78, -2.26, -0.57%) after yesterday's rally, and the real estate sector (-0.2%) trades modestly lower.

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.7%) hold similar gains to those across the major averages.

On the geopolitical front, oil prices are once again tame today as President Trump's summit with Chinese President Xi has taken some focus off the Iran conflict. Both leaders agreed that the Strait of Hormuz should remain a free waterway.

The market is now focused on the IPO debut of Cerebras Systems (CBRS), which opened at $350 after pricing at $185, underscoring strong demand for AI-related listings.

Overall, continued strength in mega-cap and AI-linked leadership is keeping the broader market firmly in record territory, even as participation across non-tech sectors remains more mixed.

Reviewing today's data:

• April Retail Sales 0.5% (Briefing.com consensus 0.4%); Prior was revised to 1.6% from 1.7%, April Retail Sales, ex-auto 0.7% (Briefing.com consensus 0.4%); Prior 1.9%
  • The key takeaway from the report is that solid spending activity was seen across most retail categories in April, which is when consumers were digesting the gas price shock from the Iran war. Excluding auto and gasoline station sales, retail sales were up 0.5% month-over-month.
• Weekly Initial Claims 211K (Briefing.com consensus 208K); Prior was revised to 199K from 200K, Weekly Continuing Claims 1.782 mln; Prior was revised to 1.758 mln from 1.766 mln
  • The key takeaway from the report is that, even though initial and continuing jobless claims were up in the latest week, neither has risen to a level that would ring alarm bells about a serious deterioration in the labor market.
• April Import Prices 1.9%; Prior was revised to 0.9% from 0.8%
• April Import Price ex-oil 0.8%; Prior was revised to 0.2% from 0.6%
• April Export Prices 3.3%; Prior was revised to 1.5% from 1.6%
• April Export Prices ex-ag. 3.4%; Prior was revised to 1.6% from 1.7%
• March Business Inventories 0.9% (Briefing.com consensus 0.3%); Prior 0.4%

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.8%) are a touch off session highs just after midday.

Today's session breaks from the recent software vs. semiconductor dynamic, where one group has tended to outperform at the expense of the other.

The PHLX Semiconductor Index is up 0.8%, while the iShares GS Software ETF (IGV 90.72, +2.12, +2.39%) outperforms. Packaged software names such as AppLovin (APP 481.08, +27.56, +6.08%) and ServiceNow (NOW 91.19, +4.14, +4.76%) are among the top performers in the information technology sector (+1.8%), though Cisco (CSCO 116.37, +14.50, +14.23%) remains the clear standout in today's session.

[BRIEFING.COM] The major averages trade in a stable range near session highs at midday.

Take-Two (TTWO 241.36, +14.37, +6.33%) is one of the top-performing S&P 500 names as reports circulate of a pre-order date for GTA 6, according to Open Critic.

Elsewhere in the communication services sector (+0.2%), Charter Comm (CHTR 152.20, +9.14, +6.39%) holds a similar gain, rebounding from yesterday's 52-week low.

Additionally, Alphabet (GOOG 398.10, -0.94, -0.23%) is now modestly higher after a relatively sharp opening retreat.

[BRIEFING.COM] It is another record-setting session for stocks, with the gains once again driven by strong tech leadership. The S&P 500 (+0.9%) and Nasdaq Composite (+1.1%) are charting record highs, with the S&P 500 moving past the 7,500 mark for the first time. The DJIA (+0.8%) has reclaimed the 50,000 mark, holding a similar gain for the day.

While participation in the broader market is firmer than yesterday's action, the DJIA's ability to keep pace with the other major indices largely stems from Cisco's (CSCO 117.35, +15.48, +15.19%) sharp post-earnings gain. The company decidedly topped earnings estimates and issued upside guidance driven by accelerating AI infrastructure demand.

NVIDIA (NVDA 235.74, +9.91, +4.39%) is a mega-cap standout after the U.S. approved H200 chip sales to ten Chinese companies, while UBS raised its price target on the stock to $275 from $245.

The information technology sector is up 2.1%, the PHLX Semiconductor Index is up 0.9%, and the Vanguard Mega Cap Growth ETF is up 1.2%, underscoring the importance of tech leadership to the record push.

Additionally, the market is awaiting the first trade of Cerebras Systems (CBRS), which priced its IPO well above the expected range, adding to the enthusiasm around AI-related names. The question now is whether leadership can continue to broaden beyond the tech space, or if investors will continue leaning on semiconductors, mega-cap growth, and AI-linked momentum names to drive the market's advance.

[BRIEFING.COM] The major averages continue to chart session highs, with tech names providing the leadership.

Outside of the technology sector, there is some giveback in yesterday's outperformers while several laggards are seeing modest rebounds.

The consumer discretionary sector (-0.1%) is modestly lower, which is largely due to Amazon (AMZN 267.54, -2.59, -0.96%) and Tesla (TSLA 445.28, +0.01, +0.00%) facing some pressure after yesterday's advance, as strength is broad across its other components.

In particular, Ford Motor (F 14.62, +1.05, +7.74%) is outperforming again today after climbing 13% in yesterday's trade following positive analyst commentary from Morgan Stanley around the company's recently announced energy storage business.

Meanwhile, the financials sector (+0.6%) holds a nice gain as a majority of its components trade higher, with investment managers and insurance names among the top performers.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (+0.4%) are maintaining their early gains as tech gains widen.

Cisco (CSCO 116.73, +14.86, +14.58%)  is trading sharply higher to a new all-time high after reporting strong Q3 (Apr) results and issuing much better-than-expected Q4 (Jul) guidance, driven by accelerating AI infrastructure demand and broad-based networking strength. The company also announced an AI-focused restructuring plan that includes nearly 4,000 job cuts as it reallocates resources toward silicon, optics, security, and AI initiatives.

Cisco delivered one of its strongest quarters in recent memory as AI-related demand accelerated across both hyperscaler and enterprise markets. The biggest takeaway was not just the strong Q3 beat, but the Q4 guidance was truly impressive, fueled by AI infrastructure. Cisco is known for being somewhat cautious on guidance, so to see this big upside guidance for Q4 really illustrates the potential they are seeing. Investors also appear encouraged by the breadth of networking demand, particularly in switching, routing, and Wi-Fi 7 adoption. Margin concerns tied to higher memory pricing also eased considerably after management indicated gross margins have stabilized.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.5%) are posting broad gains this morning, sending the S&P 500 and Nasdaq Composite to fresh record highs while the Dow briefly eclipsed the 50,000 mark.

Tech gains continue to be a catalyst for index level growth, with the information technology sector (+1.0%) leading all S&P 500 sectors. However, today's leadership is not as tightly concentrated across semiconductor names, with the PHLX Semiconductor Index (+0.5%) holding just a modest gain.

Cisco (CSCO 115.05, +13.18, +12.94%) is surging higher after an impressive beat-and-raise earnings report (which is contributing to the DJIA's outperformance), with Hewlett Packard Enterprise (HPE 33.70, +1.62, +5.07%) moving higher in sympathy.

NVIDIA (NVDA 232.18, +6.35, +2.81%) continues to move higher this week, which helps offset some mega-cap weakness elsewhere.

Alphabet (GOOG 393.97, -5.07, -1.27%) is giving back some of its previous gain, which keeps the communication services sector (-0.6%) lower, while the materials sector (-0.5%) also lags. Participation in the broader market is solid compared to recent sessions, with eight S&P 500 sectors trading higher.

Just released, business inventories increased 0.9% in March (Briefing.com consensus 0.3%), from an upwardly revised prior increase of 0.5% (from 0.4%).

The stock market remains poised for a mostly higher opening amid continued AI-related enthusiasm and a sizable batch of economic data.

Total retail sales increased 0.5% month-over-month in April (Briefing.com consensus: 0.4%) following a downwardly revised 1.6% increase (from 1.7%) in March. Excluding autos, retail sales rose 0.7% month-over-month (Briefing.com consensus: 0.4%) after increasing 1.9% in March.

The key takeaway from the report is that solid spending activity was seen across most retail categories in April, which is when consumers were digesting the gas price shock from the Iran war. Excluding auto and gasoline station sales, retail sales were up 0.5% month-over-month.

Initial jobless claims for the week ending May 9 increased by 12,000 to 211,000 (Briefing.com consensus: 208,000). Continuing jobless claims for the week ending May 2 increased by 24,000 to 1.782 million.

The key takeaway from the report is that, even though initial and continuing jobless claims were up in the latest week, neither has risen to a level that would ring alarm bells about a serious deterioration in the labor market.

There were some inflation alarm bells ringing in the import-export price index, however.

Import prices were up 1.9% month-over-month, leaving them up 4.2% year-over-year. Excluding fuel, import prices rose 0.8% month-over-month and were up 2.9% year-over-year. Export prices jumped 3.3% month-over-month, leaving them up 8.8% year-over-year. Excluding agricultural products, export prices advanced 3.4% month-over-month and were up 9.3% year-over-year.

The S&P 500 futures currently trade 23 points above fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with Japan's Nikkei (-1.0%) hitting a fresh record before reversing while South Korea's Kospi (+1.8%) finished at a fresh record high. The U.S. delegation led by President Trump met with Chinese leadership today. Today's discussions were reportedly pleasant with the two sides aiming to build a constructive relationship of strategic stability. Japan sold 30-yr JGBs to solid demand and a Bank of Japan policymaker said that a rate hike should happen as quickly as possible. South Korea's President Lee requested a bilateral currency swap line with the U.S. Treasury.

• In economic data:
  • China's April New Loans -CNY10.0 bln (expected CNY320.0 bln; last CNY2.99 trln), April Outstanding Loan Growth 5.6% yr/yr (expected 5.8%; last 5.8%), and April Total Social Financing CNY620.0 bln (expected CNY1.50 trln; last CNY5.23 trln)
  • Japan's April M2 Money Stock 2.3% yr/yr (expected 1.9%; last 2.0%)
  • India's April WPI Inflation 8.30% yr/yr (expected 4.40%; last 3.88%)

---Equity Markets---

• Japan's Nikkei: -1.0%
• Hong Kong's Hang Seng: UNCH
• China's Shanghai Composite: -1.5%
• India's Sensex: +1.1%
• South Korea's Kospi: +1.8%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in positive territory while several smaller markets are closed for Ascension Day. Reports from the U.K. indicate that Prime Minister Starmer could face an imminent leadership challenge. It is unclear if Chancellor Reeves would maintain her post in the event of a leadership change. European Central Bank policymaker Kazaks said that the full impact of the Iran war on inflation is not visible yet and that the situation is a bit worse than the ECB's baseline scenario.

• In economic data:
  • U.K.'s Q1 GDP 0.6% qtr/qtr, as expected (last 0.2%); 1.1% yr/yr (expected 0.8%; last 1.0%). March GDP 0.3% m/m (expected -0.1%; last 0.4%), March Industrial Production -0.2% m/m, as expected (last 0.3%); 0.0% yr/yr (expected 0.2%; last -0.5%). March Manufacturing Production 1.2% m/m (expected -0.1%; last -0.2%); 1.2% yr/yr (expected 0.0%; last -0.8%). March trade deficit GBP27.22 bln (expected deficit of GBP19.80 bln; last deficit of GBP22.80 bln). Q1 Business Investment 0.7% qtr/qtr (expected 1.1%; last -2.9%); -1.8% yr/yr (last 1.8%)
  • Spain's April CPI 0.4% m/m, as expected (last 1.2%); 3.2% yr/yr, as expected (last 3.4%). April Core CPI 2.8% yr/yr, as expected (last 2.9%)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +1.4%
• U.K.'s FTSE 100: +0.4%
• France's CAC 40: +0.8%
• Italy's FTSE MIB: +0.9%
• Spain's IBEX 35: +0.8%

The S&P 500 futures currently trade 28 points above fair value.

Just released, Total retail sales increased 0.5% month-over-month in April (Briefing.com consensus: 0.4%), following a downwardly revised 1.6% increase (from 1.7%) in March.

Excluding autos, retail sales increased 0.7% (Briefing.com consensus: 0.4%) following a 1.9% increase in March.

Initial jobless claims for the week ending May 9 increased by 12,000 to 211,000 (Briefing.com consensus: 208,000) from a downwardly revised level of 199,000 (from 200,000).

Continuing jobless claims for the week ending May 2 increased by 24,000 to 1.782 million, from the downwardly revised prior level of 1.758 million (from 1.766 million).

Import prices increased 1.9% in April, following an upwardly revised 0.9% increase in March (from 0.8%).

Excluding oil, import prices increased 0.8%, following a downwardly revised 0.2% increase in March (from 0.6%).

Export Prices surged 3.3% in April, following a downwardly revised previous increase of 1.5% (from 1.6%).

Excluding agriculture, export prices increased 3.4%, following a downwardly revised 1.6% increase in March (from 1.7%).

Equity futures point to a higher opening this morning following an eventful day for the stock market that saw the S&P 500 and Nasdaq Composite notch fresh record highs. Stocks opened to broad losses after another hotter inflation reading, though a rebound in mega-cap and semiconductor stocks largely outweighed the losses at the index level. However, breadth was weaker, and the DJIA finished slightly lower for the day.

The Dow is set to open higher this morning, which is due in part to a sharp premarket gain from Cisco (CSCO 117.40, +15.53, +15.2%) after an impressive beat-and-raise earnings report.

Elsewhere, Cerebras Systems (CBRS) adds to the AI enthusiasm after pricing its IPO at $185 per share, well above the revised $150-$160 dollar range.

On the geopolitical front, the summit between President Trump and Chinese President Xi has yet to deliver any surprises, with both leaders agreeing the Strait of Hormuz should remain a free waterway.

The market has a full slate of economic data on the calendar this morning, which includes weekly initial jobless claims data (Briefing.com consensus 208K) and the Retail Sales report for April (Briefing.com consensus 0.4%).

In corporate news:

• Biogen (BIIB 216.70, +12.17, +6.0%) trades higher in the premarket after announcing compelling topline results from the Phase 2 CELIA study evaluating diranersen - the first study to show reduction in tau pathology and cognitive benefit in patients with early Alzheimer's Disease.
• Cisco (CSCO 117.40, +15.53, +15.2%) beat EPS expectations by $0.03, beat revenue expectations, and guided Q4 EPS and revenues well above consensus.
• NVIDIA (NVDA 230.10, +4.27, +1.9%) H200 chip sales were approved by the U.S. government for ten Chinese companies.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with Japan's Nikkei (-1.0%) hitting a fresh record before reversing while South Korea's Kospi (+1.8%) finished at a fresh record high. Japan's Nikkei: -1.0%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: -1.5%, India's Sensex: +1.1%, South Korea's Kospi: +1.8%, Australia's ASX All Ordinaries: +0.1%.

In news:

• The U.S. delegation led by President Trump met with Chinese leadership today.
• Today's discussions were reportedly pleasant with the two sides aiming to build a constructive relationship of strategic stability.
• Japan sold 30-yr JGBs to solid demand and a Bank of Japan policymaker said that a rate hike should happen as quickly as possible.
• South Korea's President Lee requested a bilateral currency swap line with the U.S. Treasury.

In economic data:

• China's April New Loans -CNY10.0 bln (expected CNY320.0 bln; last CNY2.99 trln), April Outstanding Loan Growth 5.6% yr/yr (expected 5.8%; last 5.8%), and April Total Social Financing CNY620.0 bln (expected CNY1.50 trln; last CNY5.23 trln)
• Japan's April M2 Money Stock 2.3% yr/yr (expected 1.9%; last 2.0%)
• India's April WPI Inflation 8.30% yr/yr (expected 4.40%; last 3.88%)

Major European indices trade in positive territory while several smaller markets are closed for Ascension Day. STOXX Europe 600: +0.7%, Germany's DAX: +1.6%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +1.0%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +1.0%.

In news:

• Reports from the U.K. indicate that Prime Minister Starmer could face an imminent leadership challenge.
• It is unclear if Chancellor Reeves would maintain her post in the event of a leadership change.
• European Central Bank policymaker Kazaks said that the full impact of the Iran war on inflation is not visible yet and that the situation is a bit worse than the ECB's baseline scenario.

In economic data:

• U.K.'s Q1 GDP 0.6% qtr/qtr, as expected (last 0.2%); 1.1% yr/yr (expected 0.8%; last 1.0%). March GDP 0.3% m/m (expected -0.1%; last 0.4%), March Industrial Production -0.2% m/m, as expected (last 0.3%); 0.0% yr/yr (expected 0.2%; last -0.5%). March Manufacturing Production 1.2% m/m (expected -0.1%; last -0.2%); 1.2% yr/yr (expected 0.0%; last -0.8%). March trade deficit GBP27.22 bln (expected deficit of GBP19.80 bln; last deficit of GBP22.80 bln). Q1 Business Investment 0.7% qtr/qtr (expected 1.1%; last -2.9%); -1.8% yr/yr (last 1.8%)
• Spain's April CPI 0.4% m/m, as expected (last 1.2%); 3.2% yr/yr, as expected (last 3.4%). April Core CPI 2.8% yr/yr, as expected (last 2.9%)

[BRIEFING.COM] The major averages finished mostly higher today as a rebound across mega-cap and tech names pushed the S&P 500 (+0.6%) and Nasdaq Composite (+1.2%) to fresh record highs, while mixed strength in the broader market following another hotter-than-expected inflation reading kept the DJIA (-0.1%) modestly lower.

Stocks opened lower following the release of the April PPI report, as both headline PPI (1.4%; Briefing.com consensus 0.4%) and core PPI (1.0%; Briefing.com consensus 0.3%) came in hotter than expected. The year-over-year readings also accelerated, with headline PPI rising to 6.0% from 4.3% in March and core PPI increasing to 5.2% from 4.0%, reviving concerns that the Fed may need to keep policy restrictive for longer.

There was some upward pressure on longer-dated treasuries, and rate-sensitive pockets of the market generally lagged, but it did not take long for buyers to step in on yesterday's weakness across the tech stocks.

Semiconductors were primed for a rally after yesterday's retreat, and the PHLX Semiconductor Index (+2.6%) handily recovered its losses and extended higher. onsemi (ON 115.71, +11.60, +11.14%) was one of the best-performing S&P 500 components, while NVIDIA (NVDA 225.83, +5.05, +2.29%) provided solid leadership after Bloomberg reported that CEO Jensen Huang will join President Trump on his trip to China.

Elsewhere in the information technology sector (+1.0%), Apple (AAPL 298.87, +4.07, +1.38%) traded to new all-time highs, while software names finished mostly lower.

Mega-cap leadership extended beyond the technology sector, with Alphabet (GOOG 399.06, +15.24, +3.97%) and Meta Platforms (META 616.63, +13.63, +2.26%) pushing the communication services sector (+2.7%) to the top of the leaderboard, while strength in Amazon (AMZN 270.13, +4.31, +1.62%) and Tesla (TSLA 445.17, +11.72, +2.70%) outweighed broad weakness in the consumer discretionary sector (+0.8%).

The Vanguard Mega Cap Growth ETF finished 1.0% higher, and the market-weighted S&P 500 (+0.6%) decidedly outperformed the S&P 500 Equal Weighted Index (-0.4%).

Elsewhere in the consumer discretionary sector, Ford Motor (F 13.58, +1.60, +13.30%) finished as the top-performing S&P 500 component following positive analyst commentary from Morgan Stanley around the company's new energy storage business.

Gains across the broader market were generally more modest, though the health care sector (+0.7%) meaningfully expanded upon yesterday's gains.

Meanwhile, four S&P 500 sectors finished lower. The rate-sensitive utilities (-1.3%) and real estate (-0.9%) sectors were among the worst-performers amid rising Treasury yields, while the financials sector (-1.1%) faced broad weakness and underperformance across financial services names.

Headlines surrounding the U.S.-Iran conflict were relatively muted today as President Trump arrived in Beijing for a summit with Chinese President Xi Jinping, where the leaders are expected to discuss tariffs, the Iran war, and Taiwan over the coming days. Crude oil futures settled today's session $1.29 lower (-1.3%) at $101.01 per barrel. 

Ultimately, strong leadership from mega-cap and AI-linked tech names was enough to push the major indices to fresh record highs, with investors largely brushing off the hotter inflation data and firmer rate backdrop. Even with participation still fairly narrow, the market's largest components continue to do the heavy lifting and keep the broader uptrend intact.

Longer-dated U.S. Treasuries recorded their third consecutive day of losses, while the short end resisted even though the market received a much hotter-than-expected PPI report for April. The U.S. Treasury sold $25 bln in 30-year bonds to weak demand, but the market held its ground after the auction. The 2-year note yield settled down one basis point to 3.99%, the 10-year note yield settled up two basis points to 4.48%, and the 30-year note yield settled up two basis points to 5.05%.

• Russell 2000: +14.6% YTD
• Nasdaq Composite: +13.6% YTD
• S&P Mid Cap 400: +10.6% YTD
• S&P 500: +8.8% YTD
• DJIA: +3.4% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications 1.7%; Prior -4.4%
• April PPI 1.4% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 0.5%, April Core PPI 1.0% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%
  • The key takeaway from the report is that the surge in producer prices in April wasn't just energy-related. That surge accounted for the bulk of the 2.0% increase in the index for final demand goods, but two-thirds of the "broad-based advance" in the index for final demand services was attributed to a 2.7% increase in margins for final demand trade services.