- US500 and US100 are gaining nearly 1% an hour after the US session open, although a peace agreement with Iran based on the US’ “maximalist” demands still appears uncertain
- US private payrolls came in slightly below expectations at 109k versus forecasts of 120k, but clearly above the previous reading of 69k
- The US Treasury is reportedly considering adding equities to so-called “Trump Accounts”, according to The New York Times
- Arista Networks is trading lower after earnings, while Disney and AMD are posting strong gains, improving sentiment across the broader semiconductor sector
US500 (D1 interval)
The US500 climbed to fresh all-time highs near the 7,400-point mark. The index is now trading almost 20% above the local correction lows recorded at the end of March. If the April 2025 pattern linked to tariff-war panic were to repeat, the index could still have room for further upside. The current earnings season remains very strong and suggests that elevated valuations among US companies are not entirely detached from underlying market fundamentals.
Source: xStation5
Among tech stocks, weakness is visible in memory chip producers, including Sandisk, as well as cloud networking giant Arista Networks. Meanwhile, the semiconductor, electronics, and metals sectors are posting strong gains, supported by rising gold and silver prices.
Source: xStation5
Corporate news
Mining companies, airlines, and cruise operators moved higher following reports suggesting a possible rapprochement between the US and Iran regarding a memorandum aimed at ending the war. At the same time, energy companies and fertilizer producers came under pressure as markets began pricing in the possibility of higher oil supply. The semiconductor sector remained mixed after the recent AI-driven rally, although some technology stocks continued to advance.
- AMD and Super Micro Computer gained as investors continued to price in strong demand for AI infrastructure and data centers
- Advanced Micro Devices rose 4% after publishing AI chip segment guidance that exceeded market expectations
- Alphabet moved higher following better-than-expected first-quarter results from Verily, although the company still pointed to a challenging business environment heading into 2026
- Apollo Global strengthened after surpassing $1 trillion in assets under management, reinforcing expectations of continued capital inflows into alternative assets
- Compass posted strong gains after reporting quarterly results above expectations and issuing second-quarter revenue guidance ahead of Wall Street consensus
- CVS Health advanced after raising its full-year guidance, supported by improved profitability in its insurance business
- GE Aerospace climbed after increasing its full-year EBITDA outlook, further boosting sentiment toward the aerospace sector
- KKR rose after quarterly sales figures exceeded market expectations, with infrastructure and energy investments continuing to support growth
- JPMorgan noted that improving industrial conditions and restructuring efforts could support 3M’s earnings in the coming quarters
- Super Micro Computer surged 13% following margin improvements and signs of better cost control related to AI server deliveries
- TransMedics plunged 21% after Needham downgraded the stock to “hold” following weaker-than-expected quarterly results
- Uber gained 9% after issuing stronger-than-expected gross bookings guidance, suggesting resilient consumer demand despite geopolitical tensions
- Veracyte rose 14% after quarterly results beat Wall Street consensus estimates
Arista Networks shares (D1 interval)
Arista Networks reported strong first-quarter results, but investors focused on margin pressure and a full-year outlook that did not fully meet elevated expectations. Revenue rose 35% year-over-year to $2.71 billion, above the $2.61 billion consensus estimate. Adjusted EPS reached $0.87, up from $0.66 a year earlier, while billings growth accelerated to 54% YoY. Despite this, ANET shares fell nearly 14% in after-hours trading. The main concern was guidance for Q2 adjusted operating margin of 46–47%, below Q1’s 47.8% and last year’s 48.8%. Arista also raised its 2026 revenue growth forecast to 27.7%, but analysts had expected a range closer to 28–30%.
AI networking remains the company’s key growth driver. Arista launched new liquid-cooled XPO optics for next-generation AI data centers and introduced a “universal AI spine” based on its 7800 platform, designed to support large-scale AI workloads. Wall Street remains broadly positive. Morgan Stanley kept its Overweight rating, calling Arista “one of the cleanest ways to own the AI networking cycle.” The main debate is shifting from demand strength to whether Arista can secure enough supply to meet AI-driven demand efficiently.
Source: xStation5
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