Stock Market Today: Trump, Musk, and AI Dominance
The American economy is navigating turbulent waters, but strong leadership and free market innovation are showing the way. Stock futures are down this morning as higher bond yields challenge the rally. Lower rates are the oxygen of the free market, and right now, the market is gasping for air. Here are the top things to watch on Tuesday, May 19.
Peace Through Strength and the Oil Squeeze
President Donald Trump showed true leadership last night, calling off a planned attack on Iran at the request of Middle East leaders. Peace through strength works. But the oil market is still a problem. Prices barely drop on peace rumors, yet they skyrocket on war talk. Without a solid peace deal, oil could jump from $108 today back to $119. If that happens, expect the 10-year Treasury yield to push toward 5.5%. It currently sits at 4.62%.
Housing Needs Free Market Solutions
Home Depot reported mostly in line first-quarter results and reiterated its full-year guidance. The stock has struggled because high mortgage rates are freezing the housing market. This American staple needs lower rates to move higher. Period.
Intel: A Win for American Manufacturing
Intel CEO Lip-Bu Tan confirmed the foundry business is gaining momentum. He stayed quiet on a rumored manufacturing deal with Apple, but production quality is drawing serious external customers. This is crucial for U.S. national security and bringing jobs back to American soil. Tan's 14-month turnaround is nothing short of remarkable.
Tech Giants and the AI Arms Race
- Nvidia: HSBC raised its price target to $325 from $295 ahead of earnings. They kept a buy rating, arguing that diversifying revenue away from cloud providers will unlock value. Nvidia remains the undisputed king of AI chips.
- Broadcom and Marvell: Evercore lifted Broadcom's price target to $582 from $490, naming it a frontrunner in co-packaged optics. Evercore also boosted Marvell to $155 from $133. Broadcom's custom-chip business remains a powerhouse.
- Google and Blackstone: These two giants are teaming up to create a new AI cloud company using Google's TPUs, according to the Wall Street Journal. Broadcom co-designs the TPUs. This is a direct assault on