Good morning, and happy Friday. Thursday was a rebound for the ages: the S&P 500 closed at a record as oil prices caved and the chip stocks that scared everyone earlier this week came roaring back. Now earnings season kicks into gear.
The Market Gauge
Thursday's close, a broad rebound to a record:
S&P 500: 7,543.64 (+0.81%), a record high
Nasdaq: 26,206.89 (+1.30%)
Dow: 52,487.41 (+0.27%)
The mood flipped hard. Oil prices caved after days of climbing, easing the Iran worry, and the chip and AI names that sold off earlier this week came roaring back (Micron and Sandisk jumped). The Nasdaq led, and the S&P finished at a fresh record.
Beginner note: the speed of a rebound matters. When a leading group like AI chips gets hit and then bounces back to new strength within days, it signals the uptrend is still intact. Fast recoveries show real demand; slow, grinding ones are the warning sign.
On today's calendar
Delta reports before the open. If you read last night's lesson on how earnings reactions work, here is your live lab: Delta Air Lines reports results this morning. Watch the thin, jumpy pre-market reaction first, then watch where the stock actually settles after the 9:30 open. That settling price is the real verdict.
Chips stay in the spotlight. After a whipsaw week, the semiconductor group is front and center, with big chip readouts coming out of Asia. How the group trades today tells you whether Thursday's rebound has legs.
Earnings season is here. Q2 reports accelerate from here, and the big banks kick things off next week. Expect company results, more than headlines, to steer stocks.
On the radar: Broadcom
$AVGO ( ▲ 1.33% ), one of the biggest names in AI chips, rose 3.20% on Thursday to about $401 as the chip group rebounded. It also landed a reported $30 billion chip deal with Apple, a reminder of how much money is pouring into the AI buildout.
Why it's worth watching: growth trading is largely about owning the leaders of the leading group, and right now that group is AI chips. When a leader like Broadcom bounces back fast and keeps signing deals, it is showing the kind of strength that tends to pull the whole market along. The question today: does it hold Thursday's gain, or was the chip rebound a one-day bounce?
ONE FOR THE ROAD
Watch Delta's earnings reaction this morning. Does the jumpy pre-market move match where the stock settles after the 9:30 open? Reply with what you notice. That is last night's lesson, playing out live.
Educational content only. Not financial advice. Past performance does not predict future results. Read the full financial disclosure.