The Everything Rally: AI, Software, Memory, and Space All Catch a Bid
Weekly Breakdown for the Week of May 25-29, 2026
Tech-Led Rally Broadens as Momentum Builds
The market continued to grind higher this week, with bullish momentum becoming more well-rounded across sectors.
What started as a narrow AI-driven move has expanded into a broader advance led by technology, semiconductors, and increasingly the memory and PC supply chain.
Strength in names tied to data centers and AI infrastructure remains the backbone, but the notable shift has been fresh inflows into software, signaling a rotation into lagging growth areas.
The tone of the market has improved as buyers continue to step in on dips, reinforcing the idea that institutions are still putting money to work rather than distributing stock.
Oil Slides on Iran Deal Chatter
Geopolitical headlines remained in focus as discussions around a potential deal involving Iran surfaced, though nothing has been finalized.
Markets reacted quickly, with oil pulling back on the possibility of increased supply entering the market if an agreement is reached.
That decline in crude helped ease concerns about inflation reaccelerating, which in turn pressured bond yields lower.
The move in rates reflects a market that is highly sensitive to any signals that inflation could remain contained, especially after prior fears tied to energy shocks.
Snowflake Ignites Software Sector Revival
Snowflake (SNOW) helped breathe life back into the software trade after delivering strong earnings that beat expectations and raised guidance.
The company showed improving demand trends, particularly in enterprise data and AI-related workloads, which reassured investors that spending in the space is stabilizing.
The stock reacted sharply higher following the report and, more importantly, sparked sympathy moves across the broader software group.
This marked a meaningful shift in sentiment for a sector that had lagged much of the year.
Micron’s Surge Signals Memory Supercycle
Micron Technology (MU) has been one of the standout performers, with the stock seeing a massive run as the market continues to reprice the memory cycle.
Tight supply conditions and surging demand tied to AI infrastructure have accelerated the recovery narrative, pushing analysts to raise price targets aggressively.
The rerating reflects a growing belief that this is not just a cyclical bounce but a more durable upcycle.
The move has also lifted sentiment across the broader memory space as investors reposition for continued strength.
Dell Explodes Higher on AI Infrastructure Demand
Dell Technologies (DELL) delivered one of the strongest reactions this earnings season, with the stock surging sharply after a massive beat and raised outlook.
The company posted record revenue of roughly $43.8 billion and earnings that more than doubled year over year, but the real story was AI infrastructure, where server revenue tied to AI demand hit around $16 billion with orders accelerating even further.
What shifted sentiment was the forward outlook, as Dell raised full-year guidance and projected AI server revenue could reach as high as $60 billion, reinforcing its role as a core beneficiary of the AI buildout rather than a legacy hardware name.
Space Theme Heats Up Ahead of SpaceX IPO
Excitement is building around SpaceX's upcoming IPO on June 12th, which is expected to be one of the most closely watched public offerings in recent years.
The broader space trade has seen renewed interest as investors position ahead of that event, looking for sympathy plays, such as ASTS, across satellite and launch-related companies.
At the same time, sentiment was briefly shaken this week after a Blue Origin rocket exploded during testing, highlighting the industry's inherent risks.
Even so, the long-term growth narrative around space commercialization remains popular with the market.
Drone Stocks Catch a Bid on Domestic Push
The drone sector saw a notable uptick following news that the U.S. government is looking to expand domestic drone production, particularly for defense and surveillance applications.
This policy push aims to reduce reliance on foreign manufacturers and strengthen national security capabilities.
Stocks like Unusual Machines (UMAC) reacted strongly as investors quickly priced in the potential for increased demand and government contracts. The move underscores how quickly capital can rotate into emerging themes when a clear catalyst appears.
Sector Weekly Performance
Current Themes & Volatile Movers
Headline Reactions
News catalysts of all types caused sharp reactions in many stocks this week.
AMD up 8% as semiconductor momentum continued on strong CPU demand.
APP up 26% overall on positive analyst commentary, including notes downplaying competitive risks from Meta Platforms.
ASTS mixed on the week, initially up on space-sector momentum into the anticipated SpaceX IPO before reversing sharply lower following a Blue Origin rocket explosion.
INTU down 20% after Mizuho lowered its price target post-earnings.
RDW up 49% on continued strength across space names following the Starship V3 launch.
RGTI volatile, initially consolidating with quantum peers before rebounding later in the week alongside renewed sector strength.
MNTS up 127% in a sharp short squeeze despite filing a $200M mixed shelf offering.
LUNR up 20% despite losing the NASA Lunar Terrain Vehicle contract.
NBIS up 5% after the Situational Awareness fund disclosed a large position.
META up 3% after launching subscription offerings across Instagram, WhatsApp, and Facebook.
IREN up 10% after announcing a purchase agreement with Dell Technologies for Blackwell systems.
BSX down 16% amid signs of slowing demand for its WATCHMAN device.
ARM up 21% as semiconductor stocks continued to maintain strong momentum.
ONDS up 42% on reports of potential U.S. government funding for domestic drone production.
RCAT up 55% after launching full production of its autonomous maritime defense platform.
HOOD up 24% on news that Trump Accounts may be added to the platform.
MSFT up 6% on AI momentum, including developments around Copilot and ties to Snowflake/AWS infrastructure.
NOW up 21% as software stocks rebounded with easing AI disruption fears following strong Snowflake results.
PLTR up 14% as AI-driven defense names gained traction.
IBM up 13% after announcing a $10B investment into quantum computing.
CRWD up 11% on cybersecurity strength as sentiment improved across software.
UMAC up 103% alongside drone sector momentum tied to potential government funding.
INTC down 4% due to end-of-month rebalancing pressure.
Earnings Reactions
Up on Earnings
SNOW up 51% on strong earnings, multiple analyst upgrades, and plans to spend $6B on AWS over five years.
DELL surged 50% after strong earnings, raised guidance, and multiple analyst upgrades.
DLTR up 20% after beating Q1 expectations and raising full-year guidance.
BBY up 26% after better-than-expected Q1 results.
Down on Earnings
AZO down 14% after reporting financial results.
ZS down 21% after weak guidance and multiple analyst price target cuts following earnings.
PDD down 10% after reporting a year-over-year decline in Q1 EPS.
SNPS down 7% on mixed analyst reactions to earnings.
Market & Economic News
Trump stated that it is critically important that the CFTC maintains authority over prediction markets.
Ongoing negotiations between the U.S. and Iran persisted without significant updates on Tuesday.
Oil inventories fell less than expected on Wednesday, leading to a slight drop in crude prices.
Fed’s Cook stated the Fed is ready to hike rates if needed, but urged patience.
Anthropic raised $65B in series H funding at a $965B valuation.
The U.S. and Iran have reportedly reached a version of a peace deal, pending President Trump’s approval.
President Trump left a two-hour meeting on a possible deal with Iran without making an immediate decision.
Elon Musk rejected a report that SpaceX had lowered IPO its valuation target to $1.8T.
Upcoming Earnings
Monday 6/1/26
SAIC, CRDO, HPE, HIVE, CANG
Tuesday 6/2/26
DG, PANW, VSCO, GTLB, MOMO, ULTA, DCI, SPWH, PETS
Wednesday 6/3/26
MMED, AVGO, MTD, CRWD, CGNT, AI, M, VEEV, FIVE, CHPT
Thursday 6/4/26
CIEN, RBRK, CMCO, PL, LULU, CAL, DOCU, IOT, GWRE, COO
Friday 6/5/26
ABM, GIII
Upcoming Economic Events & Data
Monday 6/1/26
ISM Manufacturing PMI
ISM Manufacturing Employment
Construction Spending
Tuesday 6/2/26
Fed Kashkari Speech
JOLTs Job Openings
JOLTs Job Quits
RCM/TIPP Economic Optimism Index
API Crude Oil Stock Change
Wednesday 6/3/26
MBA 30-Year Mortgage Rate
ADP Employment Change
Fed Barr Speech
ISM Services PMI
Factory Orders
EIA Crude Oil Stocks Change
Fed Beige Book
Thursday 6/4/26
Initial Jobless Claims
Continuing Jobless Claims
Nonfarm Productivity
Fed Daly Speech
Fed Balance Sheet
Friday 6/5/26
Non-Farm Payrolls
Unemployment Rate
Participation Rate
Government Payrolls
Manufacturing Payrolls
U-6 Unemployment Rate
Used Car Prices
Consumer Credit Change