Midday Market Brief: Catch Your Breath

After a runup of nearly 8% in the past six weeks, the market and its Big Tech drivers appear to be taking a break.

Photo illustration by Connor Lin / The Daily Upside

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Given the S&P 500 has jumped more than 7% from its late-April low to hit a new all-time high this week, a respite may be in order.

Stocks were trending sideways without much conviction on Thursday, as investors head into summer seemingly needing another spark to drive the market significantly higher.

The Big Tech stocks that have driven the market higher since that low — Nvidia, Apple, Alphabet — were taking a similar break, coinciding with news that the federal government may begin antitrust inquiries into some of Big Tech’s main AI players.

Against the backdrop of the European Central Bank cutting interest rates for the first time since 2019, the US economic data on Thursday held up the mixed-bag premise that has taken hold this week. Initial jobless claims for the week ticked up, while first-quarter productivity was revised down. Also, the April trade deficit widened, which, while showing increased global trade activity, could mean a drag on GDP numbers this quarter.

Movers & Shakers

Here are some of the stocks making moves today:

  • Lululemon shares were up 5.7% after the company reported strong first-quarter earnings and said it authorized a $1 billion stock buyback plan. That outweighed the fitness apparel retailer’s soft outlook for Q2.
  • Costco rose 1.2% after the warehouse retailer said late Wednesday that it posted same-store sales growth of 6.5%. Telsey Advisory Group raised its price target on the stock to $900 on Thursday.
  • Nio stock was down 7.1% after the company’s first-quarter earnings report fell short of analysts’ profit and revenue expectations.