WS #9012
The dominant signal in this window is a sharp market rotation: the Dow surged nearly 900 points to a new record while the Nasdaq lagged, driven by a rotation out of tech stocks. Broadcom (AVGO) fell 14%, confirming AI premium repricing. Lululemon (LULU) reported a Q1 EPS beat but slashed full-year guidance, sending the stock to its lowest since 2018. DocuSign (DOCU) and Rubrik (RBRK) both beat estimates and raised guidance, providing pockets of tech strength. Separately, Trump made multiple headlines: he said Fannie Mae and Freddie Mac are probably worth $1 trillion, and reiterated that Pulte's DNI role is temporary. The US Strategic Petroleum Reserve is shrinking fast due to the Iran war, and a Nassau County tobacco bond defaulted for the first time. The Broadcom/Apollo/Blackstone AI infrastructure partnership continues to be a theme. The May jobs report preview suggests a solid increase. The dominant narrative is a tech-to-value rotation, with the Dow hitting records while AI stocks sell off.
Key developments
- Dow surges ~900 points to record close; Nasdaq lags as tech rotation deepens
- Lululemon slashes FY2026 guidance; stock hits lowest since 2018
- Trump says Fannie Mae and Freddie Mac probably worth $1 trillion
- DocuSign beats Q1 estimates, raises FY2027 guidance
- Rubrik beats Q1 estimates, raises FY2027 guidance above consensus
- US Strategic Petroleum Reserve shrinking fast to mid-2023 levels due to Iran war
- Nassau County tobacco bond defaults, first-ever in $80B sector