Markets Surge on Soft CPI and Saudi Investment Wave
Markets cheered a cooler CPI print Tuesday and launched higher — though not without a hint of altitude sickness. Major indexes hit fresh yearly highs, but technicals whisper that the market might need.
I. 📢 Headlines & Catalysts
- Inflation decelerates: April CPI came in at 2.3% YoY, the lowest since 2021, and 0.2% MoM, easing fears of Fed tightening. Shelter and energy ticked higher, but food prices slipped.
- U.S.–Saudi $600B bonanza: Major U.S. firms like Nvidia, AMD, and Uber are riding a wave of Middle East investment. Nvidia rallied 5.63% on AI chip deals; Uber rose 4.11%.
- UnitedHealth implodes: $UNH collapsed –17.79% after suspending 2025 guidance and leadership changes, dragging down the Dow. Healthcare was the market’s sacrificial lamb.
- Markets surged on soft inflation and global capital flows, but the rally may be stretched. The S&P is well above key support and short-term breadth is heating up.
👂 The Fed is talking less, but traders are listening more — to inflation’s whispers and Saudi Arabia’s roar.
II. 🟩 Sector Performance Snapshot
🚀 Top Performers🔻 LaggardsTechnology (+2.16%)Healthcare (–2.6%)Energy (+1.66%)Real Estate (–1.09%)Consumer Cyclical (+1.27%)Consumer Defensive (–0.09%)
Tech soared while Healthcare fainted — one got a jolt of AI, the other, a gut punch from UNH.
III. 📊 Technical Breadth & Sentiment Check
- Advancers > Decliners — NYSE and Nasdaq saw positive breadth.
- McClellan Oscillator: +134.77 → firmly in overbought territory
(In bull markets, overbought can stay overbought — but it’s a caution flag nonetheless.) - % Stocks Above 40SMA / 200SMA: 64.23% / 35.14% → market extended but still not euphoric
- VIX: 18.22 — still calm, under 20
- Put/Call Ratio: 0.79 → Neutral to bullish bias
- NAAIM Exposure: 81 — elevated, but not extreme
📉 Breadth was positive but starting to stretch — even rubber bands snap when overworked.
IV. 💼 Earnings & Corporate News
- Palantir $PLTR: Hit $128 ATH on AI + military news. CEO Alex Karp attended high-level meetings at the Saudi Investment Forum, alongside other tech leaders.
- Nvidia $NVDA: Up 5.63% on 18,000-chip deal with Saudi Arabia, fueling 500MW AI datacenters.
- Tesla $TSLA: Rose 4.93% as ASPs rose with tariffs; back over $1T market cap.
- UnitedHealth $UNH: Down nearly 18% on suspended guidance, CEO departure.
⛽ Saudi oil money is now fueling AI, autonomous cars, and… Uber?
V. 🗓️ Economic Calendar Highlights
- Today: MBA 30-Year Mortgage Rate (7:00 AM)
- Yesterday: CPI cooled to 2.3% YoY, giving markets a dovish relief pop
- Coming Up: PPI, Retail Sales, and Thursday’s jobless claims — key to Fed trajectory
🧾 Don’t sleep on Thursday’s job data — the Fed surely isn’t.
VI. 🧭 Interpretation & Outlook
Markets surged on soft inflation and global capital flows, but the rally may be stretched. The S&P is well above key support and short-term breadth is heating up. Sector rotation is in play (Tech hot, Healthcare not), and sentiment indicators show some froth.
What to trade today:
The market appears extended at this stage, making chasing positions potentially risky. A period of consolidation seems likely. For now, I’ll tighten stops and stay patient, waiting for fresh low-risk entry opportunities.
Here are some of the trades taken recently / during the last 2–3 weeks (all part of the trading plans — $ARM, $AXON, $RBLX, $CELH, $NNE, $PLTR, $SOUN, $TEM, $TSLA, $ZS, $UBER, $HIMS):
