The major US indices are now all higher with the Dow up 0.12%, the S&P up 0.19%, and the NASDAQ index up 0.22%.
Nvidia continues its move to the upside with a gain of 2.27% at $229.52. Yesterday moved above its 100 hour moving average at $220.67. The high-priced today reached $232.28 that is about four dollars short of its all-time high price reached on May 14 at $236.54.
The market has not reacted favorably to Alphabet’s announcement of an $80 billion equity raise, which includes a $10 billion private investment from Berkshire Hathaway. The funds are earmarked for expanding AI infrastructure, including compute capacity and data centers, but investors appear concerned about the dilution and the enormous capital requirements associated with the AI arms race. As a result, the stock initially moved sharply lower.
The decline took Alphabet shares down to $358.44, testing the 38.2% retracement of the rally from the late-March low at $356.47. Buyers leaned against that support level, helping the stock recover a portion of its losses and move back toward the session highs. The rebound suggests that while the news was viewed negatively, buyers are still willing to defend key technical support.
From a technical perspective, the stock remains under pressure after breaking below its 200-hour moving average at $379.68. As discussed yesterday, rallies had already been struggling after the 100-hour moving average repeatedly capped upside attempts over the past week. That failure near resistance helped shift momentum back in favor of the sellers.
Going forward, support remains anchored at the 38.2% retracement level of $356.47, while resistance is defined by the 200-hour moving average at $379.68. As long as the price remains below the 100-hour and 200-hour moving averages, the technical bias favors the downside. However, the successful defense of the 38.2% retracement highlights an ongoing battle between buyers and sellers, with sellers maintaining a modest advantage for now.
Microsoft shares are down 3.51% today after three consecutive sessions of strong gains. That rally pushed the stock well above its key short-term technical levels, including the 100-day moving average at $413.14, the 200-hour moving average at $420.12, and the 100-hour moving average at $421.73, giving buyers firm control of the trend.
Momentum accelerated yesterday when the stock gapped higher and moved above its 200-day moving average, trading above that key long-term barometer for the first time since January. However, today’s price action has reversed that breakout. The stock has gapped back below the 200-day moving average, now at $456.64, disappointing buyers and triggering profit-taking from short-term traders. The session high reached $453.50, failing to reclaim the 200-day moving average, while the price has fallen to a low of $443.50 in recent trading.
From a technical perspective, the inability to hold above the 200-day moving average shifts the focus back to support levels. The next key downside target comes in at the 38.2% retracement of the recent rally at $433.10. As long as the stock remains below the 200-day moving average, sellers have regained some near-term control. A move back above that level would be needed to restore the bullish bias and revive the breakout momentum.
Hewlett-Packard shares are among the latest beneficiaries of the AI-driven earnings boom, surging 25% after the company reported EPS of $0.79 versus $0.53 expected and revenue of $10.68 billion versus $9.78 billion expected. Management also delivered an upbeat outlook, citing strong demand trends and continued momentum heading into the coming quarters.
The stock’s rally has been remarkable. Since its February low, HP shares have climbed nearly 200%, reflecting investor enthusiasm for companies tied to the AI infrastructure and enterprise technology buildout. Similar outsized gains have been seen in other AI beneficiaries, including Intel and Dell, as investors continue to reward companies showing tangible earnings growth from the AI spending cycle.
The key question now is whether the pace of those gains can be sustained. While the trend remains firmly higher, the stock has become increasingly extended from major support levels. The 38.2% retracement of the rally from the February low comes in at $47.42, well below the current price near $60.00. That wide gap highlights both the strength of the advance and the potential vulnerability should investors begin to take profits after the stock’s explosive move higher.
Dell shares have followed a path similar to Hewlett-Packard, but with even greater momentum. Since bottoming earlier this year, the stock has surged more than 322%, making it one of the standout performers in the AI-driven technology rally.
Today, the shares are lower by 3.67%, but that decline is modest when viewed against the backdrop of the stock’s extraordinary advance. The rally has pushed Dell well above its key moving averages, leaving the stock technically stretched and vulnerable to periods of profit-taking. However, being overbought does not necessarily mean the uptrend is over—it simply means expectations have become elevated and volatility can increase.
From a technical perspective, there is considerable room for a corrective pullback while still maintaining a bullish outlook. The 38.2% retracement of the move higher from the 2026 low comes in at $332.47, well below current levels, while the 100-hour moving average sits even lower at $291.16. Those levels underscore just how powerful the rally has been. For now, buyers remain firmly in control, and today’s decline looks more like a pause within a strong uptrend than a meaningful shift in the broader bullish bias.
Intel has been one of the standout AI winners this year, with the stock surging 224% from its late-March low to the high reached in May. After such an explosive advance, some consolidation is not surprising.
Today, shares are down 1.59%, and the decline briefly pushed the price below its rising 200-hour moving average at $105.67. However, sellers were unable to generate much downside momentum. The stock bottomed at $104.17, holding comfortably above the May 19 low of $102.40, before rotating back higher and reclaiming the 200-hour moving average. That recovery suggests buyers are still willing to step in on dips, at least for now.
The bigger question is whether investors continue to favor Intel or begin rotating into the next AI high-flyer. After gains of more than 200%, expectations are elevated, and maintaining that momentum becomes increasingly difficult. From a technical perspective, the 200-hour moving average remains a key support level, while the 100-hour moving average at $115.96 serves as an important upside target and barometer for bullish momentum. As long as the stock holds above the 200-hour moving average, buyers retain a near-term advantage, but traders should be alert for signs that enthusiasm is beginning to fade after the stock’s remarkable run. Watch the 100 hour moving average on any upside momentum from here. If it holds resistance, investors may be losing interest at the lofty levels.
Marvell Technology shares are soaring 27.2% today after Nvidia CEO Jensen Huang highlighted the company as a key player in the future of AI infrastructure. The endorsement has sparked another wave of buying interest, with investors focusing on Marvell’s role in networking, connectivity, and custom silicon solutions that support the growing demand for AI computing.
Part of the excitement stems from Marvell’s relatively modest size compared to some of the AI giants. With a market capitalization of roughly $200 billion, investors see significant room for growth if the company can continue to expand its position in the AI ecosystem. The prospect of eventually becoming a much larger company—even one discussed in terms of a potential trillion-dollar valuation—is fueling speculative interest and helping to justify aggressive buying in the near term.
The stock’s move has been extraordinary. From its February low to today’s high, Marvell shares have rallied approximately 294%, underscoring the market’s appetite for AI-related names. Such gains inevitably raise questions about valuation and sustainability, but momentum remains firmly on the side of the bulls. Notably, the company’s most recent quarterly results were solid rather than spectacular, with earnings of $0.80 per share on $2.42 billion in revenue, both largely in line with expectations. For now, however, investors appear more focused on Marvell’s future AI opportunities than on its current financial results.
A final standout performer comes from an entirely different corner of the market: Victoria’s Secret. The retailer has benefited from easing tariff concerns and stronger-than-expected consumer demand, helping to boost both margins and earnings. At a time when many investors were worried that higher prices and slowing economic growth would weigh on discretionary spending, Victoria’s Secret has shown that consumers are still willing to open their wallets for the right products. Sexy is in.. again.
The stock’s performance reflects that resilience. Since its March low, shares have surged 93.1%, making it one of the stronger retail stories of the year. The rally suggests investors are increasingly confident that the company can navigate the current economic environment while continuing to improve profitability.
From a technical perspective, the stock has now pushed above a key long-term level near $75.43, which marked the high reached in 2021. That level should now serve as an important support zone on any pullback. With shares currently trading near $78.13, buyers remain in control, and as long as the price holds above the former breakout level, the bullish bias remains intact. Sometimes the market’s hottest trade isn’t AI or semiconductors—sometimes it’s simply a company proving that strong consumer demand is alive and well.
This article was written by Greg Michalowski at investinglive.com.
