Yahoo Finance

Well, the Nasdaq notches its sixth day of gains as chip stocks lead the tech rally. Yahoo finances Josh Shafer joins us now with the trading day takeaways. Josh.

All right, Josh, we are going to start with the chip sector, specifically that big stock we always talk about in video, right? So more gains in the Magnificent 7 leading stocks higher today. And I want to take a look at just Nvidia's gain that we saw today for uh over 4%. And then I was zooming out, Josh, over the last six days. Look at this rise in the AI chip leader 19%. I mean, stock's been absolutely ripping. So Nvidia now, if we flip to a year to date here, as of today, it has erased all of its losses for 2025. At one point, that stock was down 30% on the year. Gives you a sense of how big this rally has been. A final point, just on the Mac 7 cohort, as a whole, if we look year to date, still not all of these stocks have recovered. And then you look at that Mac 7 index that encapsulates all of these stocks, right? So you've had recovery in the Qs, recoveries in spy, the S&P 500 ETF. Mac still down on the year though right now.

For the Mac 7 names, what's the next date on the calendar I have to look for?

So you have you have Nvidia earnings coming in two weeks, right? So I think that's going to be a big moment for the stock overall. And I think just looking at that earnings season and how Nvidia kind of rallies maybe into that, right? So you have this big rally going on in Nvidia, like I just pointed out. Does the stock keep moving higher into earnings because we've seen the last couple quarters, a lot gets priced into that stock, right? Nvidia comes out. I mean, they keep beating, right? They beat and raise, beat and raise, but it doesn't always necessarily help the stock. If you see a big rally going into it, I think that's going to be interesting to watch the next couple of weeks.

All right. Shafer, number two.

Point number two, Josh, is on the index as a whole. So right now, people are starting to talk about market valuations again, right? So when you look at the market, this is from data track research. Nichols is pointing out probably just essentially fairly valued right now on a forward 12 month P ratio. So you see the bounce that we had here, we were down here. People start to talk, oh, index is getting cheap, index is getting cheap. You're not that far from the highs that we've seen recently, right? And so now you just sort of have to think how do we get higher from here? And that becomes, I think, a little bit difficult to some extent.

So, from an investor, and I'm looking at that chart, I'm thinking, okay, well, I better I'm betting that more good news better be on the way.

Exactly, right? And I think so what is that good news, right? is sort of the key question here. And it's probably some solid economic data. Of course, that's still a concern, right? Is what did these tariffs before they were paused, how did they impact the economy? What do we find out over the next two months from that front? And then also, just does this administration continue to be a little bit pro market, right? I think a lot of the bulls right now in the street are pointing out when the market got shaky, felt like the administration stepped in. Do they stay kind of pro market? And as these deals get made and these negotiations go on, are there no more hiccups? And does the market feel confident? Seems to sort of be a key talking point right now.

All right, final point.

This is if you're looking for reasons to maybe be bullish or get a sense on sentiment, just looking at some of the stocks that are going up, Josh. You flip back a month ago and the names that we talk about that end up on maybe our trending tickers page, or I'll click on arc here, some of the names that are within that index. Look at how much some of these stocks have moved. You got a Tesla up 26%. I'm going to flip over to our AI board if I can find it here. And the AI board within that, you had Super Micro up over 15% today. You had uh Reddit was up 20 or was up 15% also at one point. Just starting to see euphoria in some of the names that are heavily shorted, and then also a little bit more risk on. And you kind of get a sense that maybe the market is getting more risk on.

Is that is that would you see those kind of names having those kind of moves? That suggest to you a bit of euphoria maybe, creating?

Yeah, I I think so, Josh. So let's just look year to date at a Super Micro, right? I mean, the stock was not doing great at this point. And then we'll go to where's where's my Tesla board if I can find it, Josh. Tesla is, I think, a good version of this sentiment too, right? Basically, stocks that fall more when the market's falling, right? And so where look at what happened here, right? Tesla just sort of gets whacked from the bottom. And you can sort of get a sense that people aren't really buying into some of these riskier names. As it starts to come up sharply, okay, maybe we're starting to feel risk on. And I'll highlight one more for you. The move in Palantir over the last couple weeks has been crazy, right? And I think they reported earnings recently. That was accepted well. But this isn't all earnings, right? This is a vibe in the market that we want to buy AI stocks, and what's my next AI winner? And people are looking for it in Palantir.

Yeah, remember heading into that print, that stock was up about 400% over the past 12 months. It was remarkable.