To The Moon

We saw the stock market in mixed sentiment, with S&P 500 climbed 0.72% while the Nasdaq Composite rose 1.61%, building on the week's earlier successes.

DJIA did not participate in the rally, declined by 0.64% instead dragged by UnitedHealth's (UNH) steep decline of 17.8%. UNH’s stock dipped significantly after CEO Andrew Witty announced his resignation for personal reasons, and the firm suspended its 2025 guidance, citing unexpected increases in medical expenses. Something which is comforting is that despite uncertainties highlighted by UnitedHealth's decision, it did not trigger widespread selling across the market.

SPY and QQQ Put In Another Day Of Green

We saw the $SPDR S&P 500 ETF Trust(SPY)$ and $Invesco QQQ(QQQ)$ put in another day of green which they in fact erased the entire losses for the year (2025).

On the SPY we are slightly under the YTD break even but QQQ and NASDAQ, they are actually above where we were before the losses was erased for the year.

We are seeing a very nice momentum build up on the SPY, this signal that we will be seeing SPY is going to clear the YTD break and have a breakout.

Here are the contributing factors:

Increased investor momentum and fear of missing out on potential gains propelled the market upward. The de-escalating trade tensions with China and a favorable April Consumer Price Index, which showed no alarming tariff-related inflation, further buoyed investor sentiment. Additionally, Saudi Arabia unveiled a $600 billion U.S. investment plan aligned with President Trump's visit, spurring optimism.

CPI Hitting Lowest Level In 4 Years And Nvidia 18,000 To Saudi

The first significant factor is the very low inflation data that we saw CPI hitting lowest level in 4 years, this is despite all the tariffs turmoil, and the second factor is $NVIDIA(NVDA)$ which CEO Jensen report that they are sending 18,000 of its top ai chips to Saudi Arabia in a very large investment.

This create a significant surge in large-cap stocks and semiconductor firms pushed the S&P 500 to recover from its losses in 2025, positioning the index in slight positive territory for the year. NVIDIA (NVDA) played a crucial role, boosting tech stocks in the S&P 500 by 2.3% as its shares gained 5.6%.

S&P 500 Technology Sector Biggest Winner

Some of the largest movers of the day, to the upside we saw Coinbase (COIN) was up by 23.97% with the S&P 500 inclusion news, and for the downside on the health care sector taking a large hit with 2.97% loss because of the huge downside from UnitedHealth (UNH) which is down 18% and almost 50% since its earnings.

Technology sector was up by 2.25% with contribution from Super Micro Computer (SMCI) up 16.02%, Palantir Technologies (PLTR) also up by 8.14% and then Nvidia (NVDA) up by 5.63%.

10 Year Treasury Yield Continued Its Upside

The yield on the 10-year Treasury settled at 4.50%, up 13 basis points from last Friday and 32 basis points since the announcement of extensive tariffs by President Trump.

Stocks To Watch

Nvidia (NVDA) shares surged over 6% after announcing a partnership with Saudi Arabia to develop a major AI data center. This initiative will utilize Nvidia's advanced GPUs, marking a significant step in transforming the Middle East into an AI powerhouse. The collaboration with Saudi Arabian AI company Humain aims to deploy 500 megawatts of AI compute capacity, further solidifying Nvidia's leadership in the AI sector.

UnitedHealth Group (UNH) experienced a sharp decline of nearly 18% following the unexpected resignation of CEO Andrew Witty. The managed care giant also withdrew its 2025 guidance due to rising medical costs. This move has intensified investor concerns, especially after the company's recent challenges, including regulatory issues and the tragic loss of its insurance unit CEO last year.

$Advanced Micro Devices(AMD)$ also saw gains, climbing nearly 4% after announcing a $10 billion investment partnership with Saudi Arabia's HUMAIN. This collaboration will enhance AI infrastructure in the region, with plans to deploy significant compute capacity over the next five years, showcasing AMD's commitment to expanding its global AI footprint.

This might be a good time to look at AMD as we are seeing the bulls back in control and we are seeing RSI showing a positive momentum, this could signal that we are going to see a bullish reversal soon. I am holding onto my AMD position, might add more shares.

$First Solar(FSLR)$ led the S&P 500 with a nearly 20% increase, driven by an upgrade from Wolfe Research. The research firm cited improved clarity on tax credits and strong bipartisan support for the Inflation Reduction Act, which could secure substantial earnings for First Solar from these credits.

YouTube (GOOGL) secured exclusive streaming rights for an NFL game, marking its first foray as a live NFL broadcaster. The platform will stream the 2025 season's Friday night Week 1 game globally, excluding certain regions. This move signifies YouTube's strategic expansion into live sports broadcasting.

OpenAI, backed by Microsoft (MSFT) and SoftBank, is considering expanding its data center capacity in the UAE, contingent on eased U.S. export restrictions on Nvidia chips. This expansion is part of a broader initiative to bolster OpenAI's presence in the Middle East, with support from local and international partners.

$Archer Aviation Inc.(ACHR)$ shares soared over 25% after reporting a 20% reduction in first-quarter net losses. The company remains focused on scaling production of its Midnight aircraft, supported by a strong cash position and additional funding commitments.

For ACHR, there have been very good momentum as seen from RSI, so if you are thinking of getting into this stock, watch for a pullback which seem to be overdue, and we could be seeing a significant volatility for this stock.

Summary

The market have started to exhibit the big recovery cycle we last saw after the COVID episode, so we might need to be aware that some investors are still in sheer disbelief that the size and speed of this rally could continue.

So I would think as investors, we might want to remain cautiously optimistic and plan for long term strategy while taking advantage of some of the pullback for discount trade.

Appreciate if you could share your thoughts in the comment section whether you think the size and speed of rally would continue or we will continue to see small bout of pullbacks along the way.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.