To start the week the tech leadership remained under significant pressure but on Tuesday afternoon many of the semi/memory stocks reversed sharply as the buy the dip crowd emerged. At the lows NYSE Semiconductor index tagged its 20d ma down ~6% for the week and ~12% off the highs. However, throughout the remainder of the week the sector came roaring back ending up >5%, closing at a new all-time high again (see what I mean about it not being smooth sailing). That rally happened despite the largest component, Nvidia, falling ~4% after earnings.

Healthcare was the best performing sector this week, up >3%. This has been the worst performing sector YTD and is being helped by a rebound in the medtech sector. Utilities and REITs also outperformed up >3% as yields pulled back. There were major M&A all-stock transactions in both sectors (NEE/D and EQR/AVB). Financials ended the week up ~1.5%. Investment banks outperformed with the M&A activity and building IPO pipeline.

US markets are closed on Monday. The rest of the week will be similar to this one with late cycle/tech and retail earnings in focus. Some large software names will report - a group that remains under scrutiny for being, potentially, AI-disrupted. The main economic data comes out on Thursday including PCE, personal income/spending and durable goods orders. The Knicks could punch their ticket to the NBA Finals for the first time since 1999. Rain or shine, enjoy your long Memorial Day Weekend!