US Open: Nasdaq surges as semiconductor stocks improve sentiments on Wall Street

• University of Michigan Consumer Sentiment (final): 49.8 (vs. 48.5 forecast and 47.6 prior)
• Consumer Expectations Index (final): 48.1 (vs. 47.7 forecast and 46.1 prior)
• Current Conditions Index (final): 52.5 (vs. 51.0 forecast and 50.1 prior)
• 5-year inflation expectations (final): 3.5% (vs. 3.4% forecast and prior)
• 1-year inflation expectations (final): 4.7% (vs. 4.8% forecast and prior)

We are seeing a clear divergence across the U.S. equity market — while sentiment remains mixed across most sectors, semiconductor and electronics names are strongly outperforming. Shares of ARM, AMD, Intel, and Qualcomm are up more than 10%, highlighting continued momentum driven by AI-related demand.

US100 (D1 interval)

Source: xStation5

Source: xStation5

Company news

• AbbVie: The FDA rejected approval of the experimental wrinkle treatment trenibotE due to manufacturing issues. Importantly, the agency did not raise concerns about safety or efficacy, suggesting a potential resubmission without the need for additional clinical trials. Reviews in other regions are ongoing.
• Ameriprise Financial: First-quarter results showed strong operational momentum, driven by higher assets under management and increased fee income. AUM rose to $1.7 trillion (+12% YoY), lifting net profit to $915 million. The fee-based model continues to perform well in a supportive market environment.
• Baker Hughes: The company delivered an earnings beat despite weakness in its oilfield services segment. Strength in industrial and energy technology (IET) orders provided a key offset, highlighting diversification benefits amid regional disruptions.
• Cisco: The company continues to expand into quantum computing infrastructure. Its newly introduced switching chip is designed to connect different types of quantum computers, marking a step toward a future “quantum internet,” although this remains a long-term strategic play.
• Citigroup: The bank is strengthening its investment banking capabilities by hiring veteran banker Klaus Hessberger to co-lead its newly formed FSI unit. The move is part of a broader effort to improve performance in institutional client segments.
• Intel: Second-quarter guidance came in well above expectations, signaling a rebound in data center and AI-related demand. Revenue and margins are being supported by strong demand for server processors, although first-quarter losses reflect ongoing restructuring costs.
• Newmont: The company beat earnings estimates thanks to record gold prices, despite lower production volumes. However, management flagged potential production softness and elevated costs in the near term.
• Nike: The company is cutting around 1,400 jobs as part of a broader restructuring effort amid a prolonged sales slowdown. Management aims to refocus on core sports categories and accelerate product innovation cycles.
• Palantir: The company is facing reputational pressure, with calls for the Swiss National Bank to divest its stake due to Palantir’s involvement in surveillance-related operations. This could weigh on investor sentiment.
• Tesla: Progress in the robotaxi segment appears slower than previously expected. A more cautious approach reflects operational complexity and risk, potentially pushing out the timeline for meaningful monetization.
• VeriSign: The company continues to show stable revenue growth and rising domain registrations, reflecting ongoing digitalization trends. However, the stock is under pressure post-earnings despite its resilient, recurring revenue model. Berkshire Hathaway remains a shareholder.

Changes in analyst recommendations

• Blackstone: JPMorgan cut the target price to $136 from $142, citing weaker-than-expected management fees after Q1 results.
• Monolithic Power Systems: Oppenheimer raised the target price to $1,600 from $1,500 on strong AI-driven data center demand outlook.
• Nasdaq: JPMorgan lifted the target price to $111 from $110 following a solid Q1 earnings beat supported by strong organic growth and stable margins.
• Roper Technologies: Piper Sandler raised the target price to $540 from $530 after solid quarterly results.
• West Pharmaceutical Services: Jefferies increased the target price to $365 from $295 following a strong report showing more balanced growth and improving margins.

Source: xStation5