Shesa's Stock Market Weekend's Update - 5|17|26

Welcome to my weekend's updates

After some good rallies the U.S stock market indexes declined on Friday, May 15, 2026, pulling back from recent record highs. The S&P 500 closed at 7,408.50, up 0.1%. This marked the seventh consecutive weekly gain. The Dow Jones Industrial Average: Closed at 49,526.17.
Weekly change, down -0.2% and Nasdaq closed at 26,225.14, down -0.1%. 

Main Reasons for the stock declined last Friday.
  • Treasury Yields and Inflation Fears
. The 10 years Yields surged, above 4.55% and the 30-year hitting multi-year highs around 5.1–5.12% due to high Inflation data.
  • Higher oil prices from Geopolitical tension kept oil prices high $105 a barrel. 
  • Profit taking: The Nasdaq and related sectors (e.g., Nvidia, Intel, AMD, Micron) had rallied sharply in prior sessions on AI enthusiasm. Investors took some profits after the run-up
  • The market’s apprehension about new Fed Chair Kevin Warsh. 
  • Post-Summit Uncertainty
 after President Trump’s meetings with Chinese President Xi Jinping in Beijing covered trade
Our portfolio may look little ugly but please remember that some pullbacks are good for the health of the stock market. The market was in oversold territory. 

Economic Data last week
  • The consumer price index (CPI/Inflation) rose 3.8% year over year in April vs. 3.7% expected by the Street. Please note that it was 3.3% in March. So, it was a big jump. As I said during my investment meet and in the blog, inflation could pick up further. Now the inflation is expected to pick around 4.2% in May. 
  • The producer price index (PPI) or you can say Producer’s inflation almost tripled 1.4% vs. 0.5% Wall Street estimates. This was a huge increase. This is another sign that next month's CPI may see a big increase.
Earnings last week
Nabious (NBIS) reported stellar result. The revenue for the quarter was up  684% and EPS came at $2.11 vs. -0.78 cents expected by Wall Street. Shares have been on fire. This and APLD have been two best AI infrastructure stocks based on ROI and growth.

Cisco (CSCO) had a good quarter and laying off 4K people. With the run-up of Semiconductor stocks Cisco has also gone up substantially and no more very cheap.

SpaceX IPO Update
SpaceX will reportedly IPO on June 12 under the ticker SPCX. The news is that, SpaceX shareholders just approved a 5-for-1 stock split, dropping the share price from $526 to $105 to facilitate retail investors to buy. There are also rumors that the IPO has been over-subscribed 10 times!! Meanwhile, yesterday Tesla (TSLA) increased the price of some premium Model Y in U.S by $1,000.

Other Updates
Fed Chair: Kevin Warsh has replaced J Powell as Federal Reserve chairman.

As said on my WhatsApp group, I sold all my shares of HIMS, TEM and most of CRWV. The earnings were far below my expectations. My MAY Blog Portfolio has been updated.

Micron (MU) delivered a new high-capacity computer memory module to its manufacturing partners. The hardware operates 40% faster than current models and save physical space inside large data centers, also reduces the power consumption, making AI servers cheaper to run. Any pullback on MU, I see it as an opportunity to slowly add.

Economic Report this week
WED, 5/20: Minutes of Fed's May FOMC meeting
FRI, 5/22: Consumer sentiment (final)

Earnings this Week
WED, 5/20: Nvidia (NVDA). I am expecting NVDA should have another great quarter. The guidance has to be really strong for the stock to go up since it has gone up significantly in last few days barring last Friday.

Stocks to Watch
NVDA, MU, TSLA, AVGO, SOXL, INTC, NBIS, APLD, AVGO, SOXL, DXYZ, NOK, AMD, MRVL

Note: The above stocks are NOT recommendation to buy/sell. These will be in my radar to keep a closer eye this week. 

What to expect
This week we will see the biggest earnings of the season - Nvidia (NVDA). It will release its earnings on Wednesday, May 20 after the market close. I do expect the company to come with a solid quarter. But the guidance has to be much above the expectations otherwise the stock may come down. We have already seen a huge run up in the stock and overall semiconductor sector. This earning would be extremely important for the market direction. Other than that FED minutes to be kept in mind as new Fed chair has arrived. Market went up pretty fast, so we may expect some volatility and pullback in the short term. If and when it happens, it's better to have a shopping list of stocks to watch and buy for long term. Have a good evening!

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