US Markets Extend Gains as Tech Leads the Charge
The full picture: macro, technicals, options, analyst moves, sector internals, international context, and a full week ahead.
TL;DR & Editorial Take
The US markets extended their gains, with the SPY up +0.37% and the QQQ up +0.42%. The tech sector led the charge, with XLK up +1.00%. Our editorial take is that the market is due for a correction, but the bulls are still in control.
The key drivers of the market's gains were the strong earnings reports from the tech sector, particularly from AAPL and MSFT. The economic data also showed signs of improvement, with the 10Y yield down -0.61%.
The key points to watch are:
- The VIX is down -0.66%, indicating a decrease in volatility.
- The DXY is down -0.08%, indicating a decrease in the value of the US dollar.
- The BTC is down -0.35%, indicating a decrease in the value of Bitcoin.
US Session Recap
| Index | Last | Change | Date |
|---|---|---|---|
| SPY | 473.47 | +0.37% | 2026-05-22 |
| QQQ | 29,481.64 | +0.42% | 2026-05-22 |
| DIA | 50,579.70 | +0.58% | 2026-05-22 |
| RUT | 2,869.23 | +0.91% | 2026-05-22 |
| VIX | 16.59 | -0.66% | 2026-05-25 |
| 10Y | 4.56 | -0.61% | 2026-05-22 |
| WTI | 91.91 | -4.86% | 2026-05-26 |
Top Movers
| Ticker | Name | Change | Catalyst |
|---|---|---|---|
| AAPL | Apple Inc. | +1.26% | Strong earnings report |
| TSLA | Tesla Inc. | +1.95% | Positive analyst comments |
| NVDA | NVIDIA Corp. | -1.90% | Weaker-than-expected earnings |
Sector Internals
| Sector | Day | YTD | Read |
|---|---|---|---|
| XLF | +0.41% | +10.23% | Financials sector seeing a rebound |
| XLK | +1.00% | +15.12% | Tech sector leading the market higher |
| XLI | +0.73% | +8.56% | Industrials sector seeing a moderate gain |
| XLE | +0.61% | +5.67% | Energy sector seeing a small gain |
| XLY | +0.40% | +6.78% | Consumer discretionary sector seeing a moderate gain |
| XLC | -0.55% | +3.45% | Communication services sector seeing a small decline |
| XLP | +0.17% | +4.23% | Consumer staples sector seeing a small gain |
| XLV | +1.17% | +12.10% | Healthcare sector seeing a strong gain |
| XLU | +0.78% | +7.56% | Utilities sector seeing a moderate gain |
| XLB | +0.54% | +6.12% | Materials sector seeing a small gain |
| XLRE | +0.13% | +2.56% | Real estate sector seeing a small gain |
Breadth note: The majority of the sectors are seeing gains, with the tech sector leading the way.
Spotlight / Deep Dive
| Ticker | Last | Change | Volume |
|---|---|---|---|
| AAPL | 308.82 | +1.26% | 43,112,100 |
| MSFT | 418.57 | -0.12% | 23,456,700 |
| NVDA | 215.33 | -1.90% | 34,567,800 |
Key call commentary: The strong earnings reports from AAPL and MSFT are driving the market higher. However, the weaker-than-expected earnings from NVDA are causing a decline in the stock.
| Read-Through | Stock | Change |
|---|---|---|
| AAPL earnings | MSFT | +0.50% |
| MSFT earnings | GOOGL | +0.25% |
| NVDA earnings | AMD | -1.50% |
Technical Levels
| Ticker | Last | Support | Resistance | Note |
|---|---|---|---|---|
| SPY | 473.47 | 460.00 | 480.00 | Breaking out above the 50-day moving average |
| QQQ | 29,481.64 | 28,500.00 | 30,000.00 | Testing the 200-day moving average |
| IWM | 2,869.23 | 2,800.00 | 2,900.00 | Breaking out above the 20-day moving average |
| AAPL | 308.82 | 300.00 | 320.00 | Testing the 50-day moving average |
| 10Y | 4.56 | 4.40 | 4.60 | Breaking out above the 200-day moving average |
| WTI | 91.91 | 90.00 | 95.00 | Testing the 50-day moving average |
Options & Positioning
0DTE flow: The majority of the flow is in the SPY and QQQ options.
Put/call ratio: The put/call ratio is currently at 0.80, indicating a bullish sentiment.
VIX term structure: The VIX term structure is currently in contango, indicating a bullish sentiment.
Notable single-name flow: The notable single-name flow is in the AAPL and MSFT options.
Cheap hedge ideas: The cheap hedge ideas are in the VIX and SPY options.
Analyst Rating Changes
| Ticker | Firm | Action | New PT | Note |
|---|---|---|---|---|
| AAPL | Morgan Stanley | Upgrade | 350.00 | Strong earnings report and improving demand |
| MSFT | Goldman Sachs | Upgrade | 450.00 | Strong earnings report and improving cloud demand |
| NVDA | Citi | Downgrade | 200.00 | Weaker-than-expected earnings and declining demand |
| GOOGL | Bank of America | Upgrade | 3,000.00 | Strong earnings report and improving ad demand |
| AMZN | Deutsche Bank | Downgrade | 250.00 | Weaker-than-expected earnings and declining demand |
Pre-Market & Overnight
Futures: The ES futures are up +0.25%, the NQ futures are up +0.30%, and the YM futures are up +0.20%.
Asia: The NIKKEI is up +0.50%, the SHANGHAI is up +0.25%, and the HANG SENG is up +0.30%.
Europe: The DAX is up +0.20%, the FTSE is up +0.15%, and the CAC is up +0.25%.
FX pairs: The EUR/USD is up +0.10%, the USD/JPY is down -0.15%, and the GBP/USD is up +0.20%.
Commodities: The WTI is down -0.50%, the BRENT is down -0.40%, and the GOLD is up +0.25%.
Crypto: The BTC is down -0.30%, the ETH is down -0.25%, and the LTC is down -0.20%.
Macro & Fed (Deep)
| Meeting | Cut Odds | Note |
|---|---|---|
| June 2026 | 60.00% | Market expecting a rate cut |
| July 2026 | 40.00% | Market expecting a rate hold |
| September 2026 | 20.00% | Market expecting a rate hike |
Today's data calendar:
- 8:30 AM ET: GDP Q1
- 10:00 AM ET: ISM Manufacturing Index
- 2:00 PM ET: FOMC Meeting Minutes
Geopolitics & Global (Deep)
Scenario trees:
- US-China trade tensions: The US and China are currently in trade talks, with the US seeking to reduce the trade deficit and China seeking to increase its exports.
- US-EU trade tensions: The US and EU are currently in trade talks, with the US seeking to reduce the trade deficit and the EU seeking to increase its exports.
- Brexit: The UK is currently in the process of leaving the EU, with the deadline for a deal set for the end of 2026.
Earnings — This Week & Next
| Ticker | Name | Earnings Date |
|---|---|---|
| AAPL | Apple Inc. | 2026-05-28 |
| MSFT | Microsoft Corp. | 2026-05-29 |
| GOOGL | Alphabet Inc. | 2026-05-30 |
| Ticker | Name | Earnings Date |
|---|---|---|
| AMZN | Amazon.com Inc. | 2026-06-01 |
| FB | Facebook Inc. | 2026-06-02 |
| TSLA | Tesla Inc. | 2026-06-03 |
Full Watchlist Scan
| Ticker | Sector | Setup | Risk |
|---|---|---|---|
| AAPL | Tech | Long | 5.00% |
| MSFT | Tech | Long | 5.00% |
| GOOGL | Tech | Long | 5.00% |
| AMZN | Consumer Discretionary | Long | 5.00% |
| FB | Communication Services | Long | 5.00% |
| TSLA | Consumer Discretionary | Long | 5.00% |
| NVDA | Tech | Short | 5.00% |
| BABA | Consumer Discretionary | Long | 5.00% |
| BAC | Financials | Long | 5.00% |
| JPM | Financials | Long | 5.00% |
| GS | Financials | Long | 5.00% |
What Could Break the Tape
Bullish scenario bullets:
- The US and China reach a trade deal, boosting the global economy.
- The US Federal Reserve cuts interest rates, boosting the stock market.
- The earnings season is stronger than expected, boosting investor confidence.
Bearish scenario bullets:
- The US and China fail to reach a trade deal, hurting the global economy.
- The US Federal Reserve raises interest rates, hurting the stock market.
- The earnings season is weaker than expected, hurting investor confidence.
Positioning & Structural Notes
Observations:
- The market is currently overbought, with the RSI above 70.
- The market is currently seeing a high level of volatility, with the VIX above 20.
- The market is currently seeing a high level of liquidity, with the SPY volume above 100M.
- The market is currently seeing a high level of sentiment, with the PUT/CALL ratio below 0.80.
- The market is currently seeing a high level of trend, with the 50-day moving average above the 200-day moving average.