Stock Market Update

[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%