The stock market wrapped up another volatile week with a bang, as the Dow Jones Industrial Average and S&P 500 surged to fresh record highs. This five-week winning streak for all three major averages has investors wondering: is this the beginning of a powerful new rally, or are we about to get blindsided by a correction?
Let’s be clear, fellow Market Monitors, the mainstream media will tell you everything is fine. They’ll point to strong earnings from big banks like JPMorgan Chase and Wells Fargo. They’ll tell you that inflation is under control. But you and I know better, don’t we? We’ve seen this game before.
This morning’s surprisingly flat Producer Price Index (PPI) report did ease immediate concerns about rising prices at the wholesale level. However, it came on the heels of Wednesday’s hotter-than-expected Consumer Price Index (CPI) data, which continues to fuel anxiety about the future path of interest rates. Remember, the Fed is terrified of this inflation getting away from them. And as we all know, a panicked Fed is bad news for Main Street.
Winners and Losers: The AI Revolution is Here, and It’s Creating Fortunes (But Not For Tesla)
While the big banks grabbed the headlines, some of the most intriguing action today happened beneath the surface. Wolfspeed (WOLF), a key semiconductor supplier for power and RF applications, skyrocketed over 20% after reporting solid earnings and a promising outlook. This is just the tip of the iceberg, folks. The AI boom is driving an unprecedented surge in demand for semiconductors, and companies like Wolfspeed are positioned to reap the rewards.
On the losing side, Tesla (TSLA) took a nearly 9% hit, disappointing investors with its long-awaited robotaxi event. Elon Musk’s vision of a driverless future may be exciting, but it seems Wall Street isn’t buying it (yet). This could be a buying opportunity for savvy investors, but tread carefully. Tesla has a history of overpromising and underdelivering.
The Top Movers of the Day
| Ticker | Closing Price | % Change |
|---|---|---|
| PACB | $1.98 | +27.74% |
| WOLF | $11.48 | +20.84% |
| AEHR | $16.02 | +20.27% |
| PLRX | $13.65 | +17.67% |
| APPS | $3.49 | +17.91% |
| Ticker | Closing Price | % Change |
|---|---|---|
| FLUT | $219.50 | -8.78% |
| TSLA | $217.80 | -8.78% |
| CIA | $4.75 | -8.83% |
| STLA | $1.83 | -2.66% |
| OKLO | $9.15 | -6.73% |
What To Watch Next Week:
- Earnings Season Heats Up: Get ready for a deluge of earnings reports next week. Citigroup (C), United Airlines (UAL), ASML (ASML), Netflix (NFLX), and American Express (AXP) are just a few of the heavy hitters set to report. Pay close attention to their guidance and any commentary on the health of the consumer.
- Is The “Soft Landing” Narrative Real? Keep a close eye on economic data releases next week, including retail sales, industrial production, and housing starts. These reports will give us a better read on whether the Fed’s “soft landing” scenario is still in play.
- China, China, China: The ongoing drama in China continues to cast a shadow over the global economy. Any news about potential stimulus measures or further cracks in their property market will have a major impact on markets.
We are living in extraordinary times, folks. The market is ripe with opportunity, but also fraught with risk. Stay vigilant, do your homework, and remember: fortune favors the bold (and the informed!).
