Evening Market Recap - Tuesday, 05-May

Good afternoon and welcome to the FactSet Evening Market Recap. Today is Tuesday, May 5, 2026. U.S. equities were higher in quiet Tuesday trading as stocks ended a bit off best levels. The Dow finished up 0.73 percent. The S&P 500 finished up 0.81 percent. The Nasdaq finished up 1.03%, and the Russell 2000 finished up 1.75%. Semis and memory saw big gains. The S-Ox was up over 4%. Other outperformers included airlines, regional banks, E&Cs, parcels and logistics, container board, industrial metals, chemicals, building products, trucking, casual diners, hotels, casinos, beverages, and HPCs. High beta, retail investor favorites, and most shorted also fared well. Laggards included energy, managed care, software, payments, exchanges, credit cards, media, grocers, and entertainment. Treasuries were firmer across the curve. Yields were down one to three basis points after a big backup in yields on Monday that saw 10-year yields the highest in nine months and the bond through 5 The dollar index was up 0 Gold finished up up 0 Silver was fractionally higher Bitcoin futures are up 2 back above WTI crude settled down 3 after rallying 4 on Monday Moving on to headlines, the path of least resistance is higher amid confirmation that the U.S.-Iran ceasefire remains intact, despite Monday's flare-up intentions. The narrative over the last two days has focused on the challenges to the ceasefire in the region, now nearing the end of its fourth week. Meanwhile, the lack of escalation has weighed on oil and helped to stabilize bond yields, both of which acted as an overhang on risk in the prior session. Strong Q1 earnings and the related AI compute and CapEx demand narrative are still the big bullish talking point for stocks. The AI dynamic continues to provide an outsized tailwind for the momentum factor, though this has also come with another bout of breadth scrutiny. There were some moving pieces in the latest economic data, but still largely supportive of the stable macro theme with ISMM services remaining in expansion in April. However, the report also continued to play into the inflation concerns surrounding the Middle East tensions, while inflation concerns surrounding AI is also receiving more attention this week It was pretty quiet overall despite the continued earnings deluge nothing particularly incremental on flows and sentiment positioning The recent focus has been on positive May seasonality the reopening of corporate buyback windows, return of retail, hedge fund selling, and largely exhausted CTA re-risking. In further macro data, the employment index was up slightly, though remains in contraction territory. March jolts job openings were a bit higher than estimates, though, down month on month, and the lowest since December. Quits rate and layoffs rate both ticked higher. March new home sales were stronger than expected and the highest since December. There was nothing on monetary policy today in remarks from Feds Bowman and Barr. Looking ahead, ADP private payrolls for April are out on Wednesday. Challenger layoffs, non-farm productivity and unit labor costs, initial claims, construction spending and New York Fed inflation expectations are on Thursday. April employment report and U of M consumer sentiment and inflation expectations cap off the week on Friday. The street is looking for an approximately 65,000 increase in April non-farm payrolls following a plus 178,000 gain in March. You are expected is unchanged at 4.3%. In corporate news, Intel was higher on a report of chip talks with Apple. Fidelity was higher on a partnership with Anthropic to develop new AI tools for banks Service now projected a better than expected billion of subscription revenue by 2030 on AI product momentum Coinbase announced a restructuring, including headcount reduction driven by AI productivity. Edwards Life Sciences announced a new CFO. Pool Corporation announced a CEO transition. Meanwhile, the volume of earnings remains extremely elevated, a dynamic that will persist throughout the week. Big thematic takeaways have already been hashed out as the market waits for April quarter results, where focus will shift to NVIDIA and the consumer. Notable post-earning standouts today included Cummins, Rockwell Automation, IDEX Laboratories, Global Foundries, Waters, Archer Daniels Midland, and Pinterest. Sterling Infrastructure and Digital Ocean were amongst notable gainers, finishing up 52.2% and 39.9% respectively. Laggards included Palantir Technologies, Eaton, Ferguson Enterprises, and Fiserv. GeneDX Holdings and Shopify were amongst notable decliners, finishing down 49.2% and 15.6% respectively. That's it for the FactSet Evening Market Recap. Have a good evening, everyone.