Michael P. Reinking, CFA
Sr. Market Strategist

Welcome back and hopefully you enjoyed the long weekend. Last week most major indices ended the week lower, though the S&P 500 was able to eke out a marginal gain to extend its weekly winning streak to five weeks. Jensen Huang deserves all the credit for that win, after Nvidia posted another blowout quarter, adding >$275B of market capitalization in the process. While Nvidia powered the tech trade the S&P 500 equal-weight, Dow Jones Industrials, S&P 400 Midcap and Russell 2k indices all ended down between 1% - 2.5%. Most of that damage came after the flash PMIs were released on Thursday which suggested that there was a reacceleration in economic activity to start the month, which sent Treasury yields higher. Those aforementioned indices all tested their respective 50d mas but held thanks to Friday’s bounce. It may be a new week, but some of the same dynamics are at play again. As we head to print the S&P 500 is up marginally with Nvidia up >5% extending its post earnings rally, but once again the equal weight version of the index is down 0.6%. The Dow is also down a similar amount and both indices are breaking below their aforementioned 50d moving averages. The Russell 2k is outperforming slightly holding around unchanged. Treasury yields once again have been weighing on sentiment as they have been moving higher following an increase in the Conference Board’s Consumer Confidence, more hawkish Fed commentary and weak 2yr/5yr auctions.