Tech Recharged: AI and chips climb 05/15/2025

HOT stories for today

US market wrap:

• Market sentiment largely carried into Wednesday, with the S&P 500 edging up 0.1% and the Nasdaq Composite gaining 0.7%, marking its sixth consecutive day of advances. The Dow Jones Industrial Average, however, dipped 0.2%, reflecting a more cautious tone among blue-chip stocks. Outside of developments in the Middle East, the policy landscape remained relatively quiet.
• Despite an 18% rebound from recent lows, the S&P 500 is currently the only major index in positive territory year-to-date. Analysts caution that, absent meaningful progress on tariff negotiations, further upside may be difficult to sustain. All eyes now turn to Federal Reserve Chair Jerome Powell, whose remarks later today could provide fresh direction. Meanwhile, the tech sector continues to outperform—Nvidia and Tesla have both surged over 16% this week, while Meta Platforms has climbed 11.3%.

Tech Recharged: AI and chips climb

• Nvidia (NVDA) and AMD (AMD) extended their gains on Wednesday, buoyed by renewed investor enthusiasm for artificial intelligence (AI) technologies. Nvidia's stock climbed 4.2% to close at $135.34, while AMD rose 4.7% to $117.72, marking six consecutive days of gains for AMD.  The resurgence in AI-related stocks is attributed to strong earnings reports and increased demand for AI infrastructure, particularly in data centers.
• Analysts highlight that companies like Nvidia and AMD are well-positioned to capitalize on the growing AI trend, with Nvidia's GPUs and AMD's EPYC processors being integral to AI applications.  Despite recent gains, both stocks remain below their 52-week highs, suggesting potential room for growth as the AI sector continues to expand. Investors are closely monitoring these developments, considering the broader implications for the technology sector and the market at large.

Stocks on the move:

• Foot Locker (FL) – Shares of the athletic apparel retailer surged 63% following a report from The Wall Street Journal indicating that Dick’s Sporting Goods (DKS) is nearing a $2.3 billion acquisition deal, valuing Foot Locker at approximately $24 per share. Meanwhile, shares of Dick’s dropped about 4% on the news.
• Cisco Systems (CSCO) – The networking giant’s stock rose 2% after posting better-than-expected fiscal Q3 results. The company also announced that CFO Scott Herren will depart in July.
• DXC Technology (DXC) – Shares plunged nearly 13% as the company issued disappointing Q1 guidance. Adjusted earnings are projected between $0.55 and $0.65 per share, well below the $0.79 consensus forecast from FactSet.

Today’s action

• Asia-Pacific markets mostly declined on Thursday, breaking from Wall Street’s positive tone as investors reassessed the implications of the temporary U.S.-China tariff truce. Japan’s Nikkei 225 dropped 0.90% and the Topix lost 0.75%, weighed down by weakness in tech and industrial names. South Korea’s Kospi slipped 0.29%, while Hong Kong’s Hang Seng fell 0.42% and China’s CSI 300 declined 0.6%. India’s Nifty 50 opened flat.
• In the U.S., futures eased overnight following three consecutive gains in the S&P 500, which had rallied on optimism over trade de-escalation. S&P 500 futures fell 0.2%, Nasdaq-100 futures slipped 0.1%, and Dow futures dropped 173 points, or 0.4%. Attention now turns to a heavy slate of U.S. economic data: April’s Producer Price Index (PPI), Retail Sales, Industrial Production, and Jobless Claims all arrive before the open. Traders will also tune in for remarks from Fed Chair Jerome Powell, who is set to speak this morning.

                                           Watchlist: AMD, CSCO, FL, DXC, WMT, BABA, DE, NTES

Bitcoin

• The cryptocurrency market saw renewed strength on Thursday, with Bitcoin (BTC) trading near $102,650 and Ethereum (ETH) climbing to around $2,586. The recovery is being fueled by increased institutional interest and positive regulatory signals. Bitcoin remains above the key $100,000 level, buoyed by headlines around a proposed U.S. strategic Bitcoin reserve, a move seen as reinforcing institutional adoption. Ethereum hit a three-month high this week, supported by infrastructure upgrades and rising momentum in decentralized applications.
• Adding to the optimism, the SEC announced plans to roll out a clearer regulatory framework for crypto tokens—seen as a long-awaited step toward market stability and mainstream acceptance. Traders remain alert as crypto’s bullish tone continues to build on improving sentiment and global policy shifts.
  Watchlist: Bitcoin: 74 000-105 500, Ethereum:1500-2800, Solana: 80-180

Forex

• The Japanese Yen (JPY) extended its advance against the U.S. Dollar for a third straight session on Thursday, supported by fresh USD selling and rising bets on further Bank of Japan (BoJ) tightening. The move follows recent wholesale inflation data showing firms continuing to pass on costs to consumers—fueling expectations of more entrenched inflation. Hawkish remarks from BoJ Deputy Governor Shinichi Uchida earlier this week further bolstered the case for additional rate hikes, keeping USD/JPY on the defensive during Asian hours.
• Meanwhile, EUR/USD firmed near the 1.1200 level ahead of Thursday’s release of Eurozone Q1 2025 GDP data. The Euro gained ground as confidence in its role as a global reserve currency strengthens. Risk sentiment remains cautious, placing added pressure on the U.S. Dollar amid lingering, though easing, global trade concerns.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials
 

• Crude oil prices edged lower in Thursday’s Asian session, with West Texas Intermediate (WTI) slipping to around $61.55. The drop follows a surprise build in U.S. crude inventories, which rose by 3.454 million barrels in the week ending May 9, according to EIA data. A firmer U.S. Dollar and renewed concerns over global demand also weighed on sentiment, putting an end to oil’s recent rebound.
• Meanwhile, gold (XAU/USD) extended its decline, falling to $3,135, the lowest level since April 10. The safe-haven metal remains under pressure as easing U.S.-China trade tensions reduce demand for bullion, while rising Treasury yields and fading expectations for imminent Fed rate cuts further dampen gold’s appeal. Traders are now looking to U.S. PPI data and remarks from Fed Chair Jerome Powell for fresh direction.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00

Key Economic Events Today:

EST time
08:30 am: USD Core PPI, PPI
08:30 am: USD Unemployment Claims
08:30 am: USD Empire State Manuf. Index
08:30 am: USD Philly Fed Manuf. Index
08:40 am: USD FED Chair Powell Speaks
09:15 am: USD Industrial Production
10:00 am: USD Business Inventories
02:05 pm: FOMC Member Barr Speaks


Earnings

BMO (Before the US Market opens)
WMT                Wallmart Inc.
BABA               Alibaba Group
DE                    Deere & Company
NTES               NetEase Inc.
AMC (After the US Market closes): AMAT, TTWO

 

The TEFS Analyst team wishes you a successful day!