Markets Overview

U.S. equities remain on a tear, with the Dow, S&P 500, and Nasdaq Composite all notching gains last week. The rally is broad but concentrated in AI-adjacent names. Broadcom (AVRO) hit a record high, Marvell Technology (MRVL) rocketed to an all-time high after Nvidia CEO Jensen Huang talked up the company's trajectory, and Arm Holdings (ARM) surged 68% in May alone. Alphabet (GOOGL, GOOG) pulled back after announcing a massive equity offering aimed at raising $80 billion for AI infrastructure. Not everyone is convinced the rally is fundamental—one popular WallStreetBets post argues the entire bull run since late March is being fueled exclusively by short squeezes in semis, software, and AI. Volatility and breadth data were not provided in today's sources.

Earnings Reports

• Sprinklr (CXM): Non-GAAP EPS of $0.11 beat by $0.01; revenue of $219.5M beat by $3.59M.
• Destination XL (DXLG): Non-GAAP EPS of -$0.06 beat by $0.01, but revenue of $103.3M missed by $2.51M.
• Macy's (M): Posted 3% Q1 comparable sales growth, but forward guidance disappointed.
• Palo Alto Networks (PANW): Strong earnings vanquished AI disruption fears; analysts raised price targets and cited clear business momentum validating the stock's comeback to fresh highs.
• SentinelOne (S): Shares tumbled post-earnings on weak guidance and announced layoffs, though the stock recouped some losses.
• Signet Jewelers (SIG): Raised guidance; analysts are weighing whether the stock is a buy at current levels.

Fed & Economic Data

Kevin Warsh was sworn in as Federal Reserve Chair on May 22, 2026, and market historians are already drawing parallels to 1987—the year of Black Monday under a then-new Fed chair. Anxiety is running high about what policy shifts may come next. Meanwhile, euro zone inflation ticked up to 3.2%, driven higher by the Iran war's impact on energy costs. The most important U.S. data release of the month—widely expected to be CPI or PCE—is exactly one week away and has the potential to shake Wall Street to its core.

Hot Sectors

AI infrastructure and semiconductors continue to dominate market leadership. Investors are debating whether Nvidia (NVDA) remains the gold standard or if Broadcom (AVGO) is the better pick. Korean and Taiwanese benchmark indices have doubled in 2026, driven by earnings, and Goldman Sachs sees another 40% upside from here. Quantum computing stocks surged after the Trump administration approved ~$2 billion in funding through Commerce Department letters of intent, giving the sector one of its strongest policy tailwinds to date. Reddit investors are building "AI infrastructure pies" covering semiconductors, coolant, and lithography to bet on the concept rather than individual winners.

Stock News

• SpaceX IPO: Elon Musk's SpaceX is preparing a nearly $2 trillion initial public offering that would be the largest in history. Analysts are skeptical, with one Wall Street Journal headline calling it "a bet gravity doesn't apply to Elon Musk."
• Alphabet (GOOGL, GOOG): Shares fell after the company announced a huge equity offering. Berkshire Hathaway recently invested $10 billion at roughly $350 per share.
• ZIM Integrated Shipping (ZIM): An arbitrage opportunity is emerging—ZIM is being acquired for $35/share in an all-cash deal with board and shareholder approval, yet the stock is trading below that level.
• Strategy/MicroStrategy (MSTR): Investors are "deeply concerned" after Michael Saylor sold Bitcoin and the market reacted negatively.
• Berkshire Hathaway (BRK.A, BRK.B): Post-Buffett 13F filing revealed major portfolio moves; one change in particular has analysts scratching their heads.
• AST SpaceMobile (ASTS): Shares surged 53.5% last month as the company positions itself as a direct competitor to Starlink.
• WallStreetBets activity: Opendoor (OPEN) is gaining attention as the next "fat finger attention trade." SPCE saw heavy retail losses, with one user posting a 60% loss and another warning of dilution via SEC filing.

Market Analysis

Veteran strategist Marco Papic says investors "would be crazy to turn bearish on stocks now"—but warns that in six to 12 months, the picture could look very different, with massive tech IPOs like SpaceX adding supply overhang risk. The AI investment thesis is maturing: the smart money is shifting from chasing AI models to identifying the "shovel sellers" in the gold rush—semiconductors, cooling systems, and lithography. On the macro front, Warsh's Fed chairmanship and its policy implications, combined with rising geopolitical energy inflation from the Iran conflict, make next week's inflation data release the single most important catalyst on the near-term calendar.