Morning Reads
- S&P 500 and Nasdaq Hit Record Highs U.S. stocks completed their best monthly performance since 2020, with the S&P 500 and Nasdaq Composite both reaching new all-time intraday and closing highs driven by strong corporate profits and AI optimism.
- US Q1 GDP Rebounds to 2.0% Growth The U.S. economy grew at a 2.0% rate in the first quarter of 2026, recovering from a fourth-quarter dip caused by a previous government shutdown.
- Jobless Claims Fall More Than Anticipated Weekly U.S. jobless claims fell significantly, indicating that layoffs remain contained despite a general cooling in job growth across the country.
- President Trump Seeks Extension for Iran Military Operations As the initial 60-day period for military action under the War Powers Resolution expires, President Trump is expected to seek a 30-day extension from Congress for continued operations in Iran.
- Alphabet Rallies 10% on AI Revenue Growth Google parent Alphabet saw its stock surge after reporting that AI investments are "lighting up" its business, with profits nearly doubling analysts' expectations.
- Cboe Global Markets Reports Record Earnings Cboe reported record net revenue of $728.9 million for Q1 2026, up 29%, and raised its organic total net revenue growth target for the remainder of the year.
- Eli Lilly Stock Spikes 7% on Drug Sales The pharmaceutical giant saw a massive spike in its shares after sales of diabetes drug Mounjaro rose 125% and obesity drug Zepbound climbed 80% year-over-year.
- Oil Prices Steady Amid Strait of Hormuz Reopening Plan Oil remains volatile near $111 a barrel as the U.S. considers a plan to reopen the critical Strait of Hormuz passageway to alleviate global supply shocks.
- Wheat Prices Surge 30% Year-to-Date Chicago wheat futures have jumped nearly 30% since the start of 2026 due to severe U.S. droughts, global fertilizer shortages, and a looming El Niño weather pattern.
- Earnings Watch: Exxon Mobil and Chevron Major energy companies Exxon Mobil and Chevron are scheduled to report their Q1 earnings today, with investors closely watching the impact of high oil prices on their bottom lines.
Big Tech: Apple (AAPL) rebounds after a record March quarter with revenue of $111.2B, though Cook flags rising memory costs.
On the Hill: Senators have banned themselves from betting in prediction markets amid mounting insider trading concerns.
Present to King Charles: Whiskey makers set to see relief after Trump removes all tariffs and restrictions on imports.
Sell in May?
Wall Street is coming off one of its best months in years. The best monthly gain since 2020—to be precise. The Nasdaq Composite (COMP:IND) surged over 15% in the span of only 30 days, while the S&P 500 (SP500) climbed 10% and the Dow Jones (DJI) climbed 7%. The advance has been powered by a resurgent AI infrastructure rally, ranging from triple-digit gains for players like Intel (INTC), to strong double-digit performances at AMD (AMD), Sandisk (SNDK), Cisco (CSCO) and Nvidia (NVDA).
SA commentary: "Despite inflationary pressures and high energy prices [given the ongoing conflict in Iran], historical May-July market seasonality and forward EPS upgrades support a continued bullish outlook," SA analyst Mike Zaccardi wrote in a new article. "Information Technology posted a 19% monthly gain, its best in over 20 years, and corporate earnings remain robust, with the S&P 500 pacing for a sixth straight quarter of double-digit YoY EPS growth, keeping valuations in check."
What about "Sell in May and go away"? The famous adage posits that stocks tend to underperform in the six months through October, so investors should convert to cash at the start of May and then buy into a dip later in the fall. The origins of the saying go back quite a while, with reasons ranging from vacation cycles to bonuses, and others noting that the worst market crashes of 1929 and Black Monday in 1987 occurred during this period. Steve Eisman says he sees no issue with market right now
Outlook: Many academic papers and market research have been written on "Sell in May," with breakdowns by stock class or periods of time. While seasonal patterns do exist, and equities could face some increased risk in the summer months, they still tend to go up over the long term despite additional volatility. Staying fully invested could also prove safer than trying to time the market in any given year, and there are countless factors out there for better portfolio decisions, such as earnings, interest rates, the macro landscape and tweets from the White House. Does 'Sell in May' strategy actually work?
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What else is happening...
U.S. Q1 GDP rises 2.0%, less than expected in initial print.
Reddit (RDDT) rallies on earnings beat, strong revenue outlook.
Bill to fund DHS finally passes, ending the record 76-day shutdown.
META layoffs: CEO blames AI spending, won't rule out further cuts.
Veeva Systems (VEEV) climbs 9% on S&P 500 (SP500) inclusion.
U.S. seeks to deploy hypersonic missiles, possibly against Iran.
Executive order signed to increase access to retirement savings.
Sandisk (SNDK) revenue surges 251%, shattering estimates.
Blue Owl (OWL) sold half of SpaceX's stake at a $1.25T valuation.
Tim Cook, Zuckerberg among rumored bidders for Seattle Seahawks.
Today's Markets
In Asia, Japan +0.4%. Hong Kong closed. China closed. India closed.
In Europe, at midday, London -0.6%. Paris closed. Frankfurt closed.
Futures at 6:30, Dow +0.2%. S&P +0.1%. Nasdaq -0.1%. Crude +0.4% to $105.48. Gold -1% to $4,581.40. Bitcoin +1.7% to $77,318.
Ten-year Treasury Yield +1 bp to 4.39%.
On The Calendar
Companies reporting today include Exxon Mobil (XOM) and Chevron (CVX).