EB Daily Market Report - Friday, April 24, 2026

Dear Members:

Semiconductor stocks continue their march higher with the SMH hitting a record high and INTC alone up almost 25% on yesterday's earnings. This, in turn, has led to a record high in the NASDAQ while the S&P remains slightly below its recent all-time high.

The market gained strength on the news that the Justice Department was dropping its probe of Fed Chair Jerome Powell, paving the way for the next Fed Chair to be confirmed. 

The move in the SMH has been something to watch; it is up 40% in just a few weeks. In fact, the RSI on the SMH is now close to 85, so it is technically very overbought and due for a pause. 

The 20% move higher in the NASDAQ since the March 30 low comes a week ahead of monster earnings next week including AAPL, AMZN, GOOGL, META and MSFT. Clearly expectations are high and by the end of next week we should have a better idea if the recent non-stop move in tech stocks can be sustained.

I will keep a close eye on the S&P as it hit a record high of 7147 on April 17. It touched that level again yesterday before closing lower. So far today, it has gotten as high as 7145. A move above that 7147 level could lead to higher prices, while failing to move above it could indicate the market might need a time out.

Back to the SMH. The move in some SMH stocks has been staggering. AMD, for example, is up by 83% in 3 weeks. INTC has more than doubled in 3 weeks. These types of moves are generally unsustainable or at least lead to profit taking when traders start to realize "enough is enough"

Still, there's no arguing that the bulls are in control here in spite of continuing trouble in the Middle East, oil remaining stubbornly high and no signs of inflation ebbing anytime soon. So let's keep an eye on the S&P to see if it clears that 7147 level or if we see some profit-taking into the close.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins