New Highs, Surging Tech, and One Strange Stock Move
Key Takeaways
- The S&P 500 and Nasdaq closed at new highs as software, semiconductors, and other areas regained strength.
- Bank earnings point to a resilient economy, which has given a boost to the Financial sector.
- Allbirds' explosive move is a reminder that some stocks may be fueled more by hype than healthy price action.
Investors are more at ease with the stock market, optimistic that the U.S.-Iran war will wind down. Stocks had a spectacular run as oil prices pulled back, with Light Crude Oil Spot ($WTIC) trading around $91. It’s still high, but lower than the +$115 we saw a week ago, which is a sign it’s moving in the right direction.
The market also got a boost from bank earnings. Overall, the reports suggest the U.S. economy is on a solid footing and that consumer spending remains resilient.
The Tech Leaders Are Back
Technology stocks are stepping back into a leadership position. It’s not just semiconductors that are pushing the market higher; quantum-related stocks such as D-Wave Quantum, Inc. (QBTS), IonQ, Inc. (IONQ), and Quantum Computing, Inc. (QUBT) saw strong upside moves. Software stocks are also showing renewed strength.
The iShares Expanded Tech-Software Sector ETF (IGV), which had a pretty rough stretch, posted three up days in a row. If it can gain momentum and break above $88.60, its last significant high, the ETF has room for a lot of upside move. The Relative Strength Index (RSI) is above 50, but the Percentage Price Oscillator (PPO) needs to cross into positive territory. Stocks like Microsoft (MSFT), Oracle (ORCL), and Palantir Technologies (PLTR) are gaining momentum.
Participation Is Broadening
Outside of tech, Financials are starting to firm up. Bank earnings this week may have something to do with that, with the Financial Select Sector SPDR ETF (XLF) approaching resistance of its 200-day simple moving average and an RSI that has crossed above 50 and approaching the 70 level.
Bank of America (BAC) was one of the active movers in the S&P 500, and several brokerage stocks posted noticeable gains.
From Footwear to AI
Even with the tech names and financial companies driving the market higher, one of the market’s most eye-catching moves came from Allbirds, Inc. (BIRD). The stock soared from $2.49 to $16.99 in one day, a 582% move, after the company announced a pivot from sneakers to AI infrastructure.
To put that move in perspective, Allbirds has been in a long downtrend since going public. After reaching its peak shortly after its debut, the stock eventually fell to an all-time low of $2.15 on March 31, 2026.
Is this the start of a turnaround, or is it an AI-fueled pump? The price action has a “meme-ish” feel to it rather than a steady technical setup. This doesn’t mean it can’t go higher but it does mean that traders should be careful. When a stock makes this kind of sudden move, it can be extremely volatile and difficult to manage, especially if you’re considering chasing it after a big spike.
It’s best to let the price action settle down and give BIRD a chance to see how it makes out as a GPU-as-a-Service and AI cloud solutions provider. If it establishes itself, you can make smart investing decisions based on what the charts are indicating.
What to Watch Next
The upside momentum will likely continue in the stock market, but the real test will come when the deal is buttoned up. Will this turn into a “buy the rumor, sell the news” rally, or will strong tech earnings be the next catalyst that will push this market higher? If earnings come through, it would be a sign that the bull market may still have legs.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
