Monday: $SanDisk Corp.(SNDK)$ -8%, $NEBIUS(NBIS)$ -11%, $Lumentum(LITE)$ -9.3%, $Corning(GLW)$ -8.1% — AI photonics and storage getting hit. $NVDA$ pulled back from the $235 high to $222.32, extending lower pre-market to $220.98. Three variables are hanging over the market simultaneously this week: the Sell in May narrative is playing out, a new Fed chair just took office, and NVDA reports tomorrow night.
Markets Rebound Day After Rate Hike — What's Driving the Rally?
Stocks took back Wednesday's Fed day and more: QQQ +1.73% to $716.92, SPY +1.13% to $762.60, the S&P 500 +1.14% to 7,637.76, against Wednesday's 0.45% decline. The lift came from outside the Fed. Weekly jobless claims unexpectedly fell, which says the labor market is not cooling the way the rate path assumes, and oil kept sliding, easing inflation pressure. Yields fell and megacap tech led. The uncertainty everyone waited on is behind the market now. But the dot plot still points to one more hike this year, and only the hike already delivered is in the price. What is the market betting on?
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