Stock market rebounds modestly as earnings growth stays robust despite macro headwinds
U.S. equities posted modest gains on May 11 as strong corporate earnings and AI momentum offset geopolitical tensions and rising oil prices. The S&P 500 and Nasdaq set fresh intraday records despite investor wariness about market concentration.
Market Performance
Major indexes close higher:
- S&P 500 gained 0.19% to close at 7,412.84
- Nasdaq Composite inched up 0.10% to 26,274.13
- Dow Jones Industrial Average advanced 0.19% to 49,704.47
- Both S&P 500 and Nasdaq hit fresh all-time intraday records during session
Earnings as Bright Spot
Strategic shifts at Wall Street:
- Yardeni Research hiked year-end S&P 500 target to 8,250 from 7,700—11.5% above Friday's close
- "I've been bullish, but not bullish enough," the firm's president told CNBC
- Analysts' earnings estimates described as "phenomenal" and unprecedented in strength
- Memory stocks like Micron Technology and Oracle surged on AI demand
Geopolitical Tensions
President Trump warned the U.S.-Iran ceasefire is on "life support" after Tehran sent an "unacceptable" counter-proposal. Despite headline risk, markets largely shrugged off escalation as April jobs surprise (115,000 added) signaled labor market resilience.
Concentration Risk Concerns
Market breadth remains concerning:
- Only ~51% of S&P 500 stocks trading above their 50-day moving averages (well below 70% peaks earlier in 2026)
- AI and semiconductor stocks driving gains, with analysts debating whether the rally resembles the 1999 dot-com bubble
- Some investors warning of stretched valuations in mega-cap tech
Oil Markets & Asia-Pacific
South Korea's Kospi gained 4.70% after opening at fresh record, with SK Hynix jumping 10.74% on chip demand optimism. However, Australia's ASX 200 fell 0.83% amid inflation concerns.