S&P 500 – 7,580.06 (+0.22%)

Dow Jones – 51,032.46 (+0.72%)

NASDAQ – 26,972.62 (+0.20%)

• Major U.S. Indexes Hit Records: The three major averages closed at fresh all-time highs on Friday, extending broad market momentum.
• Pfizer Oncology Deal Boosts Innovent: Innovent Biologics rose after announcing a potential $10.5B oncology collaboration with Pfizer, structured around upfront payments, milestones, and royalties.
• Obesity Drug Momentum Lifts Eli Lilly: Eli Lilly and Company gained after CVS expanded coverage of Zepbound, with analysts expecting rising volumes to outweigh pricing pressure in obesity treatments.
• Best Buy Downgraded by UBS: Best Buy was downgraded to neutral as UBS cited balanced risk-reward and uneven performance despite steady earnings and mid-single-digit growth expectations.
• Ceasefire Optimism Boosts Markets: Equities rose on continued optimism around a potential Middle East ceasefire, with reports suggesting the U.S. and Iran may extend their agreement by 60 days.
• Asia-Pacific Markets Hit New Highs: Regional equities advanced, with South Korea’s KOSPI hitting an intraday record and Japan’s TOPIX reaching an all-time high.
• Oil Prices Pull Back Sharply: Crude oil fell about 1.5% on the day and nearly 10% for the week as geopolitical risk eased.
• Dell Surges on AI Server Demand: Dell Technologies jumped 30% after issuing a strong sales outlook driven by surging AI server infrastructure demand.
• Tech Sector Leads May Rally: Technology stocks continued to dominate, with the sector up roughly 16% in May and driving strength in the S&P 500.
• S&P 500 Streak Extends to Nine Weeks: The S&P 500 posted its ninth consecutive weekly gain, a rare streak seen only a dozen times in the past 70 years.
• Fed Officials Flag Inflation Risks: Several Federal Reserve officials warned inflation may be reaccelerating, weighing on bonds even as falling oil prices helped ease some pressure.
• Yields Ease as Oil Drops: The U.S. 10-year Treasury yield slipped back below 4.5% as lower energy prices helped cool inflation concerns.
• AI Hardware Peers Rally in Sympathy: Hewlett Packard Enterprise and Super Micro Computer rose sharply, up 13.7% and 8.6%, following Dell’s upbeat AI-driven outlook.
• Broad Tech Strength Continues: International Business Machines, Arm Holdings, Qualcomm, and NVIDIA mostly moved higher on sector momentum, though Nvidia lagged recent gains.
• Autodesk Falls on Mixed Results: Autodesk declined despite earnings beats, pressured by a slight miss in ex-subscription revenue and concerns around its $3.6B MaintainX acquisition.
• Space Stocks Sell Off After Rocket Failure: AST SpaceMobile and other space-related stocks fell after renewed sector concerns following a Blue Origin test rocket failure.
• American Eagle Drops on Weak Sales: American Eagle Outfitters fell after reporting a 2% decline in comparable sales versus expectations for growth.
• Okta Surges on Strong Outlook: Okta jumped after strong earnings and above-consensus revenue guidance for the fiscal year.
• Gap Declines on Weak Guidance: Gap Inc. fell despite earnings beats, as investors focused on weaker full-year sales guidance and soft women’s apparel demand.
• Retail Sector Shows Mixed Strength: Consumer discretionary remains broadly resilient despite individual retail weakness, supported by steady consumer spending trends.
• Key S&P 500 Technical Levels in Focus: Market support levels are seen at 7,275, with deeper downside levels at 7,140 and 7,000, where volatility could increase.
• Solar ETF Posts Strong Monthly Gains: The Invesco Solar ETF surged about 26.5% in May, reflecting strong momentum in renewable energy stocks.
• Robinhood Outlook Raised on AI Tools: Robinhood received a higher price target from Mizuho, citing its AI-driven trading and automation tools, implying significant upside potential.

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“The purpose of our lives is to be happy.”

 — Dalai Lama XIV

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Notable Stocks

• Nvidia (NVDA)
• Okta (OKTA)
• Gap (GAP)
• American Eagle (AEO)
• AutoDesk (ADSK)

Weekly Notables

Costco to Pass Tariff Refund Value Back to Members Through Lower Prices

Costco CEO Roland Vachris said the company will return any value it receives from tariff refunds to customers, though details on the amount or method were not provided. He said Costco will use lower prices and improved value to pass savings back to members, consistent with past practices on recovered charges. The comments come after the Supreme Court struck down President Trump’s emergency tariff powers in February, prompting over 330,000 importers to pay an estimated $166 billion in invalidated tariffs. Federal Reserve estimates also suggest tariffs previously pushed up core goods prices by about 0.8% in the PCE index between November and February.

SpaceX Targets $1.8 Trillion Valuation in Potential IPO, Report Says

SpaceX is aiming for a valuation of at least $1.8 trillion in its upcoming IPO, according to a Bloomberg report. The company had previously explored a valuation above $2 trillion but has since lowered expectations after discussions with advisers and investors, though that figure could rise again depending on investor demand during its roadshow. The report notes that SpaceX’s valuation outlook remains fluid and could increase if the company receives strong market feedback as it pitches shares to institutional investors. Meanwhile, prediction markets such as Polymarket are pricing in high expectations, with traders assigning about a 90% chance that SpaceX’s market cap will finish its first trading day above $1.8 trillion and a 77% probability it will exceed $2 trillion.

Earnings Spotlight: Macy's (M)

Macy’s will report first quarter results on Wednesday June 3rd. Analysts on Wall Street project that Macy's (M) will announce quarterly earnings of $0.02 per share in its forthcoming report, representing a decline of 87.5% year over year. Revenues are projected to reach $4.62 billion, increasing 0.5% from the same quarter last year.

What's Ahead

Next week's jobs report will be closely watched, with economists expecting around 100,000 new jobs and an unemployment rate holding steady at 4.3%. 

June 1: April construction spending, May ISM Manufacturing PMI®, and expected earnings from Hewlett Packard Enterprise (HPE)
June 2: Expected earnings from Dollar General (DG), Palo Alto Networks (PANW), and Ulta Beauty (ULTA).
June 3: April factory orders, May ISM Services PMI®, and expected earnings from Medtronic (MDT), Macy's (M), Broadcom (AVGO), and CrowdStrike Holdings (CRWD).
June 4: First quarter nonfarm productivity and expected earnings from Ciena (CIEN), Planet Labs (PL), and Lululemon Athletica (LULU).