May 7, 2026

Markets:

Futures linked to the S&P 500 edged higher early Thursday after the index touched new highs, buoyed by hopes that the U.S. and Iran were closing in on an agreement to end the war.

Stocks posted strong gains in the previous session, with the S&P 500 and Nasdaq posting record highs. The Dow also popped more than 600 points.

Stocks moved higher and oil prices cooled after Axios reported, citing sources, that the U.S. and Iran are nearing a deal to end the war. Specifically, two U.S. officials and two other sources briefed on the issue told the outlet that the White House believes it is nearing a one-page, 14-point memorandum of understanding to not only end the war, but also establish a framework for more detailed nuclear talks.

An Iranian foreign ministry spokesperson said to CNBC on Wednesday that Iran was evaluating a U.S. proposal for a resolution.

Layoff announcements rose in April, spurred by a artificial intelligence-related cuts, Challenger, Gray & Christmas reported Thursday.

Job cuts totaled 83,387 for the month, a monthly increase of 38% though down 21% from the same month a year ago. Planned layoffs are down 50% year to date from the same period in 2025.

Of those reductions, 33,361 came from technology. AI accounted for 26% of the total cuts, making it the second month in a row as the leader.

Japan stocks rose more than 5% on Thursday, with the benchmark Nikkei 225 hitting 62,000 for the first time as Asia-Pacific markets rallied despite renewed tensions in the Middle East.

The Nikkei 225 advanced over 5% to end the trading day at 62,833.84, led by gains in basic materials, technology and financial stocks. Shares of index heavyweight Softbank surged more than 18%.

Portfolio:

Heading into today we are holding ACHR, NOK, SOUN, AMPX, and ONDS.

The queue is starting to heat up but we will be patient.

Tomorrow’s NFP report matters, but wages are still the real tell, not the headline number itself. Dealer support looks like it has thinned out a bit, which means dips may not get bought instantly like they were a few weeks ago. Then we head into OPEX next week which usually creates some chop and games across the market.

A lot of people asked why we stepped away from some of the semi names after the huge wins we had there. The answer is simple. A breather may be coming in that space which is super healthy!

NVDA definitely has our attention. Yesterday looked strong and if it follows through again it could absolutely drag the entire semi sector even higher. But some consolidation would make total sense after the massive run many of these names just had.

What stands out this morning is software and defensive names catching bids while a lot of semi names and NVDA are softer. We could be seeing the beginning of a rotation into software after months of brutal selling there. If that theme starts to build, the opportunities could be massive.

Keep this in mind though…

Consolidation is where the next huge move usually begins.

The only real cause for caution right now is OPEX next Friday. There is almost always some positioning and market games around those weeks.

But we will be ready for it.