Wall Street Navigates Record Highs Amidst Tech Swings, Crypto Woes, and Key Economic Data

Stocks @ Night — your essential daily brief on the market's after-hours moves and what's poised to drive the next trading session — uncovered a dynamic Tuesday as the S&P 500 remarkably closed above 7,600 for the first time. Here’s an in-depth look at what CNBC TV producers were closely monitoring and what lies ahead for Wednesday's market open.

U.S. Indexes Extend Record-Breaking Streaks

U.S. equity markets maintained their impressive momentum on Tuesday, with major indexes notching extended winning streaks. The S&P 500 edged up 0.13%, marking its ninth consecutive day of gains – a streak not seen since last May. This continuous ascent has pushed the index up by 20% from its March lows. The Nasdaq Composite also secured a modest 0.03% gain, extending its green streak to nine days, its longest since April, and is now up a significant 31% from its March lows. The Dow Industrials added nearly 230 points, recording its eighth gain in nine sessions and a 14% rise from its March lows. All three benchmark indexes concluded the trading day at fresh record highs.

Crucial Employment Data Looms

Wednesday morning brings the first major indicator of the May jobs landscape with the release of ADP payroll numbers before the market opens. Economists polled by Dow Jones anticipate a gain of 110,000 jobs, a slight increase from April's 109,000. Market participants will be keenly observing this data for any signals regarding the Federal Reserve’s next policy decisions. While the consensus for a rate hike this year is strengthening, the yield on the benchmark 10-year Treasury has notably receded from recent peaks, currently trading around 4.45% after reaching a high of 4.69% just two weeks prior.

Key Earnings Reports on the Horizon

The earnings season continues to unfold with several high-profile reports. Retail giant Macy's is scheduled to report before the bell, offering critical insights into the resilience of consumer spending. Despite a ~2% decline this year, Macy's shares have gained 15% since their last report. After the closing bell, all eyes will be on software and chip heavyweight Broadcom, which touched a new record high leading up to its earnings announcement. Broadcom shares have soared 51% in the last three months and 93% over the past year. However, it has slightly lagged the broader semiconductor sector this year, with a 39% rise compared to the VanEck Semiconductor ETF (SMH)'s 75% gain. Cybersecurity leader CrowdStrike is another name to watch after hours; the stock nearly doubled in the past three months, despite a modest pullback on Tuesday after hitting a record high Monday.

Tech Titans: Soaring Highs and Deep Dips

Recent tech earnings have sparked significant movements. Shares of HPE (Hewlett Packard Enterprise) skyrocketed an astonishing 19.5% on Tuesday, marking its largest single-day jump since its spin-off from Hewlett-Packard in 2015. This surge followed HPE's Monday night earnings report, which comfortably surpassed analyst expectations, driven by robust AI-related demand in its server unit. HPE closed at a new record high and boasts an incredible 133% year-to-date gain. Cybersecurity firm Palo Alto Networks also saw its shares climb after beating both top and bottom-line estimates post-market. The stock was up 61% year-to-date before its report.

Among the 'Magnificent Seven,' Apple shares recaptured weekly gains, closing at a fresh record. Should these gains hold, it would mark its eleventh consecutive up week, a feat not seen since 2004. After a sluggish start, Apple is now up approximately 16% year-to-date, making it the second-best performer among the Magnificent Seven, trailing only Nvidia.

However, not all tech giants participated in the rally. Microsoft concluded a three-day streak of solid gains with its largest drop since February. This coincided with the company's annual Build developers' conference in San Francisco, where it unveiled its first AI coding model. Microsoft currently ranks as the second-worst performer in the Magnificent Seven this year, down over 8%, with only Meta Platforms performing worse. Meanwhile, streaming behemoth Netflix experienced a 'chill,' declining 3% on Tuesday, marking its seventh consecutive day in the red. This represents its longest losing streak since November 2022, with shares now down 38% from their all-time high hit last June.

Nuclear Revival & Crypto Crash

Nuclear and uranium stocks surged following news that U.S. regulators are accelerating efforts to restart Pennsylvania's Three Mile Island nuclear power plant, which is set to power Microsoft data centers in the region. This development fueled strong gains: Uranium Energy Corp rose 13%, Oklo gained nearly 10%, NuScale Power was up 8%, Cameco climbed 7%, Constellation Energy increased 2.6%, Talen Energy rose 2.2%, and Vistra Corp saw a 2% uptick.

Conversely, the cryptocurrency market faced a significant downturn. Bitcoin tumbled back below the $70,000 threshold, hitting its lowest point since April 2, while Ethereum dipped below $2,000, a level not seen since late February. This crypto slump also impacted related publicly traded companies: Robinhood lost almost 3% (down 22% year-to-date), Coinbase fell nearly 5% (down 23% year-to-date), and MicroStrategy, which announced Monday it was selling some of its Bitcoin holdings for the first time since late 2022, dropped 9% (down 10% year-to-date).

NBA Finals Tip-Off Boosts MSG Sports

Beyond the financial headlines, sports fans are gearing up for the NBA Finals, which commence Wednesday night in San Antonio with the Knicks facing the Spurs. Game 1 tickets are averaging around $1,865, enough to acquire approximately five shares of MSG Sports (MSGS). MSGS, the parent company of the Knicks and New York Rangers, closed at a record high on Tuesday. The company has recently filed plans to spin off its teams into two distinct, publicly traded entities. MSGS shares have gained 48% this year, with a notable 15% increase since the Knicks' first playoff game in April.