Wall Street is poised for an eventful Tuesday, with major indices like the Nasdaq 100, S&P 500, and Nasdaq Composite recently hitting new record highs, largely propelled by tech powerhouses Apple and Nvidia. Investors are keenly awaiting the release of April’s Consumer Price Index (CPI) data, a critical inflation gauge, alongside Boeing’s latest orders and deliveries.
Additionally, FedEx will be in the spotlight as CEO Raj Subramaniam makes an appearance on ‘Mad Money,’ adding another layer of corporate news to a market already buzzing with significant economic announcements and strong performances from mega-cap tech stocks.
As Wall Street looks ahead to Tuesday's trading session, anticipation builds following a flurry of record-setting market activity and crucial economic data releases. Investors are bracing for impact from key inflation figures and corporate announcements that are set to dictate the market's trajectory.
Monday saw major indices reaching unprecedented levels, signaling robust investor confidence. The Nasdaq 100, for instance, soared to a new all-time high, boasting an impressive 17% gain over the past month. Similarly, the S&P 500 closed at a new peak, adding 8.7% in the last 30 days, while the Nasdaq Composite jumped nearly 15% to its own record. This bullish trend wasn't confined to the broader market; the S&P Tech and S&P Real Estate sectors also carved out new highs on Monday, building on the S&P Communication Services sector's peak reached last Friday.
Leading the charge in this tech-driven rally are giants Apple and Nvidia, both hitting new records. Apple has climbed nearly 8% in May, accumulating a 12% gain over the past month. Nvidia, a perennial market favorite, has surged approximately 10% this month, with its shares skyrocketing 16% in the last 30 days. These two tech titans hold significant weight in the market and are prominent holdings in investor Jim Cramer's Charitable Trust. Cramer, known for his 'Own it. Don't trade it.' philosophy, has seen Apple shares soar 1,444% since his last purchase in March 2014, and Nvidia's stock jump 1,318% since his August 2022 acquisition.
Attention will also turn to FedEx as CEO Raj Subramaniam is slated to appear on CNBC's 'Mad Money' on Tuesday night. Despite gaining 3% over the past three months, FedEx shares are currently down 6% from their April 30 high. The broader State Street SPDR S&P Transportation ETF (XTN) has seen a modest 0.4% increase over the last month but remains 15% off its August high.
The current market dynamics highlight an interesting disparity: while the market-cap weighted S&P 500 has surged 8.7% in the past month, the Invesco S&P 500 Equal Weight ETF (RSP) has gained a more modest 3.7%. The disproportionate growth is largely driven by a handful of mega-cap stocks. Nvidia, Apple, Microsoft (up 11% in the past month), Amazon (up nearly 13% in the past month, 32% in three months), Alphabet (up 22.5%), Tesla (up 27%), Broadcom, and Meta Platforms (down almost 5%) are the top percentage drivers. Berkshire Hathaway, the 10th most heavily weighted S&P 500 stock, has added 2.6% in the past week.
A critical economic event looms on Tuesday morning: the release of the April Consumer Price Index (CPI) at 8:30 a.m. ET. Market participants, including CNBC's Becky Quick, Andrew Ross Sorkin, and Joe Kernen on 'Squawk Box,' will provide live coverage and instant analysis. The Dow Jones consensus forecasts a 0.6% month-over-month increase and a 3.7% year-over-year jump. Interestingly, only 34% of users on the prediction market Kalshi anticipate a year-over-year figure higher than 3.7%, underscoring the tight predictions for this key inflation gauge.
Later in the morning, at 11 a.m. ET, Boeing is set to release its April orders and deliveries. CNBC TV's airline reporter Phil LeBeau will deliver the numbers, which often have a direct impact on the stock. Boeing shares have appreciated 9.5% in the last month but are still 6% below their January high.
