Rising yields rattled the market, but we’re sticking with our favorite AI and retail stocks
Stocks took their cue from the bond market this week.
TL;DR
- The S&P 500 and Nasdaq Composite declined due to rising bond yields and oil prices, which revived inflation concerns.
- Treasury's plan to increase long-dated debt buybacks offered brief market relief.
- Political backlash against data centers created volatility in the AI trade and hit infrastructure stocks.
- Broadcom faced competition from Marvell Technology's partnership with Alphabet's Google and news of a large AI financing deal.
- Cadence Design Systems was added to the Bullpen, with its AI-driven opportunities and challenges under scrutiny.
- Memory stock volatility continued, but conviction in Micron remained high due to AI's critical role in system performance.
- Retail earnings were mixed: Home Depot reported its best quarter in five years, TJX Companies faced merchandising issues, and Walmart's guidance disappointed.
- Ross Stores and BJ's Wholesale showed positive results, while Target highlighted pressure on discretionary spending.