The Return of Tech Stocks

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Last Week’s Market Activity

This past week, we saw some very explosive growth in tech-related stocks.  Although AI has been the talk of the town for quite some time now, NVIDIA revealed that it’s not all just talk.  In fact, they raised their Q2 revenue guide from $7 billion to $11 billion, one of the largest quarterly revenue guidance raises we’ve ever seen.  This tremendous raise led NVIDIA and other tech and AI-related stocks to soar.

Macroeconomic Indicators

Over the past week, we saw mostly good news, as new home sales, the second reading of Q1 GDP, and initial jobless claims all beat expectations.  Although PCE came in a little bit hotter than expected, markets were largely unphased by it.  This is a great indicator for investors, as it signals that markets are confident in the fact that inflation is on its way out, and the Fed will begin to lower rates soon.

Upcoming Market Catalysts

This week will be rather slow in terms of economic data releases, given the holiday weekend.  However, there are still a few key reports you should pay attention to, such as April’s job openings on Wednesday.  Additionally, on Friday, we’ll get some key employment data, such as the unemployment rate, hourly wages, and the employment report.  

Notable Earnings Releases

Although earnings season is slowing, we still have some rather large companies reporting earrings, such as:

05/30 – HP Inc. (HPQ), U-Haul Holding Company (UHAL/UHAL.B)
05/31 – Salesforce (CRM), CrowdStrike Holdings (CRWD), Okta (OKTA), Chewy (CHWY)
06/01 – Broadcom (AVGO), Dollar General (DG), lululemon athletica (LULU), Dell Technologies (DELL), Hormell Foods (HRL)

This week, we’ll hear from companies like HPQ, CRM, OKTA, and DELL, which will all give us a good idea as to how businesses are spending their money, and the trends they are currently seeing.  

We’ll also get to hear from some important consumer companies, such as LULU and DG.  These companies will give us a good idea of how consumers are spending their money, and whether they are trading up or down for clothing and basic necessities.  

Lastly, we’ll get to hear from AVGO, a key player in the semiconductor industry.  It will certainly be interesting to hear what they have to say about demand, given the recent NVIDIA news.