"Yesterday’s US stock market raised all the red flags of a late-cycle momentum rally: the S&P 500, Nasdaq and SOX all closed at fresh all-time highs, with tech, industrials and materials leading, while energy, staples and healthcare lagged behind.
"Micron surged 20% and joined the trillion-dollar club, largely on the back of a questionable research report from UBS. Its tech analyst has suddenly found a magic formula to justify a price target 60% higher than rivals at other banks had last week, suggesting that memory for AI is no longer a cyclical business. It may as well have been titled: “It’s different this time.” But the fact that it added $200bn to the value of the company should concern investors about a potential bubble in memory stocks, rather than have them partying like it’s 1999.
"Looking ahead to today’s US open, oil remains the swing factor. Crude is down 2.5% overnight as markets wait for progress on US - Iran talks.
"BP has bigger problems than a weak oil price however, after abruptly ousting chairman Albert Manifold over “serious concerns” around governance, oversight and conduct, sending shares sharply lower yesterday. After another leadership shock at one of Britain’s most important companies, the question today is whether BP is becoming increasingly ungovernable.
"With the S&P chasing a ninth straight weekly gain, AI momentum is in full swing, with favoured retail investor names AMD, Qualcomm, Marvell and SanDisk all posting Goliath gains yesterday.
For those who believe in the old stock market adage, “Sell in May and go away; don’t come back until St Leger’s Day,” there has seldom been a better set-up."
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