📊 Market Overview
On Monday, the S&P 500 rose 1.2%, the Nasdaq jumped 2.1%, and the Dow climbed 0.6%, crossing the 52,000 level for the first time ever. The rally was driven by two big catalysts: the Supreme Court ruled 5-4 to keep Lisa Cook in her role as Fed Governor, and the U.S. and Iran signaled continued diplomatic engagement. Today, watch for Nike’s quarterly earnings after the close and the May JOLTS report — a survey that tracks job openings and gives clues about the labor market’s health.
📊 Market Snapshot
Yesterday’s rally was fueled by political stability at the Fed and easing geopolitical tensions — but today’s jobs data and Nike earnings will test whether this momentum can stick.
📈 The Big Picture
Two forces pushed stocks sharply higher on Monday. First, the Supreme Court protected the Fed’s independence by blocking President Trump’s attempt to remove Fed Governor Lisa Cook — a signal that the central bank can keep making interest rate decisions without political interference. Second, signs of continued U.S.-Iran negotiations eased fears of a conflict that could spike oil prices and rattle global markets.
Meanwhile, Big Tech — the so-called “Mag 7” (the seven largest tech companies) — has fallen more than 13% from its mid-May peak, even though the broader market is only down about 2%. Microsoft is having its worst month since 2000. Analysts at JPMorgan believe these tech drops look more like temporary “AI indigestion” than a lasting breakdown, but it’s a reminder that even the biggest names can pull back hard. If you hold tech-heavy ETFs, this divergence between Big Tech and the rest of the market is worth watching closely.
📖 Term of the Day
JOLTS (Job Openings and Labor Turnover Survey): A monthly government report that shows how many job positions are open across the U.S., giving investors a read on how strong employer demand for workers is. Why you care today: The May JOLTS report drops this afternoon, and a big drop from last month’s 7.618 million openings could signal the economy is slowing — which would influence whether the Fed cuts interest rates sooner.
💼 Watchlist: 3 Stocks to Know Today
AeroVironment (AVAV) — “The Earnings Rocket”
AVAV is surging 35.25% in pre-market after crushing its Q4 earnings — revenue came in at $641.6 million versus the $559.1 million expected, a 133% jump year-over-year. The drone and defense tech company also posted adjusted EPS of $1.84, well above the $1.47 forecast.
Nike (NKE) — “The One to Watch Tonight”
Nike reports earnings after today’s close, and the stock is trading at an 11-year low after falling 36% since the start of the year. Analysts are debating whether the decline is finally bottoming out — tonight’s numbers could set the tone.
AMD (Advanced Micro Devices) — “The Upgrade”
Wells Fargo raised AMD’s price target from $505 to $615, citing strong demand for its EPYC server processors (chips that power data centers). Analyst Aaron Rakers says pricing power and server upgrades are boosting AMD’s earnings outlook for 2027 and 2028 above what the market expects.
💬 Esther’s Take
