US OPEN: US Indices Trade Sideways After Recent Rally, SMCI Extends Gains

• Super Micro Computer shares surged 15% extending Tuesday's 16% rally after Saudi Arabia-based DataVolt signed a multi-year partnership agreement valued at $20 billion

• Bank of America raised price targets for Nvidia and AMD following their deals with Saudi Arabia's Public Investment Fund subsidiary Humain.

• Tesla plans to begin shipping components from China to the US for Cybercab and Semi truck production starting late May

• Cboe Global Markets shares declined after Morgan Stanley double downgraded the stock from overweight to underweight

US indices are showing moderate gains in today's trading. The S&P 500 (US500) is up 0.32% to 5919.7, while the Dow Jones (US30) has gained 0.17% to 42299. The Nasdaq 100 (US100) is performing well with a 0.60% increase to 21382.49. The Russell 2000 (US2000) is down slightly, falling 0.02% to 2103.2. The VIX "fear index" has decreased further by 0.92% to 18.33, continuing to signal reduced market anxiety as it remains below the key 20 level.

European markets are mostly in negative territory today. The Warsaw Stock Exchange (W20) is down 0.49% to 2842.6, France's CAC 40 (FRA40) has fallen 0.43% to 7829.4, and Germany's DAX (DE40) is showing a decline of 0.14% to 23642.3. The UK's FTSE 100 (UK100) has slipped 0.10% to 8573.0, while the Eurozone's EURO STOXX 50 (EU50) is down 0.05% to 5389.6. Spain's IBEX 35 (SPA35) is showing a minor loss of 0.03% to 13766.

However, there are some bright spots in European trading with several markets posting gains. Austria's ATX (AUT20) is up 0.26% to 4313, Switzerland's SMI (SUI20) has gained 0.27% to 12132, and the Netherlands' AEX (NED25) is showing an increase of 0.28% to 926.11. The strongest performers include Italy's FTSE MIB (ITA40) with a 0.44% gain to 39624 and the EURO STOXX Technology sector (VSTOXX) rising 0.59% to 17.08.

This mixed performance across global markets comes as investors process recent news about US-China trade relations and significant tech investments in Saudi Arabia, suggesting a cautious but generally positive market sentiment.

S&P 500 Sectors Show Mixed Performance. Source: Bloomberg Financial LP

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by the US100, is currently trading above the 23.6% Fibonacci retracement level — a key zone that may act as resistance. Bulls will look to retest previous highs, while bears may aim for a pullback toward the 200- and 100-day SMAs, with the 38.2% retracement level as the next potential downside target.

The RSI is in bullish divergence and nearing overbought territory, suggesting momentum remains supportive of the uptrend but warrants caution. Meanwhile, the MACD continues to widen after a bullish crossover, indicating sustained bullish momentum. Source: xStation

Market News

• Super Micro Computer shares surged 15% extending Tuesday's 16% rally after Saudi Arabia-based DataVolt signed a multi-year partnership agreement valued at $20 billion. The deal will "fast-track delivery of ultra-dense GPU platforms and rack systems for DataVolt's hyperscale AI campuses" in Saudi Arabia and the US. This comes amid a broader $80 billion investment commitment from Google, Oracle, Salesforce, AMD, Uber Technologies, and DataVolt in "cutting-edge transformative technologies" across both countries, coinciding with US President Donald Trump's visit to Saudi Arabia.

• Hon Hai Precision Industry (Foxconn) cut its full-year revenue growth guidance due to potential fallout from the US trade war and currency fluctuations. Chairman Young Liu noted, "The US tariff policy has been evolving swiftly over the past month and leading to not-insignificant impact on the global supply chain." Despite these concerns, the company reported strong Q1 results with net income of NT$42.1 billion ($1.4 billion), surpassing analyst estimates of NT$35.5 billion, and April sales surged 26% on "strong pull-in momentum" for AI products. The Taiwanese dollar's 8% appreciation against the USD this year remains a concern, with every NT$1 rise reducing revenue by approximately 3%.

• Bank of America raised price targets for Nvidia and AMD following their deals with Saudi Arabia's Public Investment Fund subsidiary Humain. Analyst Vivek Arya increased Nvidia's target by $10 to $160 (23.1% upside) and AMD's by $10 to $130 (15.6% upside), citing multiyear AI infrastructure projects expected to cost $3-5 billion annually or $15-20 billion over multiple years. Arya noted that "Sovereign AI nicely complements commercial cloud investments with a focus on training and inference of LLMs in local culture, language and needs" and can help address limited power availability for US data centers. Both stocks rose more than 2% in Wednesday's premarket trading.

• Tesla plans to begin shipping components from China to the US for Cybercab and Semi truck production starting late May, according to Reuters, citing an unidentified person with direct knowledge. Tesla has not immediately responded to requests for comment.

• Cboe Global Markets shares declined after Morgan Stanley double downgraded the stock from overweight to underweight, citing greater than expected tariff de-escalation between China and the US. Analysts noted the de-escalation came "sooner and better than expected," limiting upside for options volumes growth. Morgan Stanley cut Cboe's price target from $256 to $215, with shares falling 1.6% in premarket trading to $216.77. The VIX fell sharply Monday as stocks surged, moving below the key 20 level which signals a more normalized level of market volatility.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP