📊 Market Overview
After the long Memorial Day weekend, the S&P 500 rose 0.6%, the Nasdaq surged 1.2%, while the Dow dipped 0.2%. The biggest drivers were falling oil prices — fueled by hopes of a renewed Iran deal — and a massive rally in tech, led by Micron crossing a $1 trillion market cap for the first time. Today, all eyes turn to Wednesday’s earnings from Marvell Technology and Salesforce, which will signal where AI demand is really heading.
📊 Market Snapshot
Tech and AI stocks are leading the market higher, but the rally is still narrow — watch whether it starts spreading to other sectors this week.
📈 The Big Picture
Two big forces pushed markets yesterday. First, oil prices dropped on hopes that a new deal with Iran could boost global supply, which is good news for consumers and companies that spend heavily on energy. Second, the AI boom keeps accelerating — Micron’s stock jumped 20% and crossed a $1 trillion market value (the total price tag investors put on the entire company), proving that demand for memory chips used in AI systems is enormous.
But here’s what matters for your portfolio: JPMorgan notes the rally is still being carried mostly by a small group of AI and semiconductor stocks. They see signs it could “broaden” into cyclical sectors (companies whose profits rise and fall with the economy) like industrials and consumer spending — especially if oil prices keep falling and geopolitical tensions ease. That broadening would be healthier for long-term investors who hold diversified ETFs.
📖 Term of the Day
Market Cap (Market Capitalization) — the total value of a company’s stock, calculated by multiplying its share price by the number of shares outstanding. It tells you how big a company is in the eyes of investors.
Why you care today: Micron just crossed a $1 trillion market cap for the first time, joining the ultra-elite club of the world’s most valuable companies — a sign of just how massive AI-driven chip demand has become.
💼 Watchlist: 3 Stocks to Know Today
FedEx (FDX) — “The Upgrade”
JPMorgan upgraded FedEx from Neutral to Overweight (meaning they now expect it to beat the market) and raised their price target to $460. The catalyst is FedEx’s plan to spin off its freight division on June 1, which analysts believe will unlock hidden value ahead of earnings on June 23.
Zscaler (ZS) — “The Caution Sign”
Zscaler reported strong earnings — revenue hit $850.5 million and profits beat expectations — yet the stock dropped 25.65% in pre-market trading. This is a textbook reminder that even great results can disappoint when a stock’s price already bakes in perfection.
Semtech (SMTC) — “The Surprise”
Semtech beat expectations on both revenue ($291M vs. $283M expected) and earnings ($0.51 vs. $0.45 expected), and guided next quarter well above forecasts. The stock jumped 10% in early trading, showing strong demand for its products as the AI buildout continues.
💬 Esther’s Take
