The U.S. stock market has continued to rise despite high crude oil prices, geopolitical tensions, and mixed recent earnings from leading technology stocks, CNBC reported on Monday [1]. More than 100 companies in the S&P 500 index are expected to release first-quarter earnings in the coming week, focusing investor attention on major tech players like Advanced Micro Devices (AMD) and Palantir Technologies [1].
Palantir is scheduled to report earnings after the Monday market close, followed by AMD after the Tuesday close [1]. CNBC called AMD the most important upcoming report for momentum traders, noting the stock has risen 270% over the past year [1]. Palantir, although down 30% from its all-time highs, has surged 550% over the past two years and commands heavy options trading volume, with 62% of total options volume and 72% of premium share [1].
"The markets next test could come down to two stocks," CNBC said, highlighting AMD and Palantir as potential catalysts to support a rally in hardware and software sectors [1]. AMD’s stock saw a 75% rebound in April after a sharp 17% drop following its last earnings report, and option traders are expecting a 7% price move around the upcoming announcement [1]. Palantir’s expected options move is around 8%, with a historical four-quarter average move of 8.7% [1].
Last Friday, the S&P 500, Nasdaq 100, and Russell 2000 indices all hit new highs, and the volatility index (VIX) fell to 16.4, its lowest level since early February, signaling calm market conditions ahead of the earnings week [1].
Following these reports, Nvidia is set to report earnings on May 20, marking another notable milestone for tech stocks this earnings season [1].
