Friday's big stock stories: What’s likely to move the market in the next trading session

Uranium stocks, including Oklo (+122%), Nuscale (+95%), and Centrus (+74%), have seen significant gains in May, while the Global X Uranium ETF is up 29% for the month; however, most are still off their recent highs. Nvidia continues to perform strongly, up 27% in May, but Western Digital is outperforming it, up 29.4% in May. SentinelOne shares were hammered, down 11.6%, after lowering full year guidance and experiencing a widespread outage.

Analysis

The market exhibited notable divergence across sectors in May. The nuclear energy sector experienced a significant rally, with the Global X Uranium ETF (URA) climbing 29% during the month, despite a 2% dip on the day of reporting. Individual nuclear technology companies saw even more substantial gains: Oklo (OKLO) surged 122%, Nuscale 95%, Centrus (LEU) 74%, and Cameco (CCJ) 30% in May, although most remain 5-27% below their recent highs. Energy-related stocks NRG Energy (NRG) and Constellation Energy (CEG) were top S&P 500 performers, up 41% and 36% respectively in May. Conversely, the healthcare biotech sector, represented by the Range Cancer Therapeutics ETF (CNCR) and the S&P Biotech ETF (XBI), underperformed significantly; CNCR fell 10% in May and is 45% below its September high, while XBI is 24% below its 52-week high, ahead of the influential ASCO conference. In technology, Nvidia (NVDA) continued its strong run, gaining 3.25% post-earnings and up 27% in May, though Western Digital (WDC) outperformed it with a 29.4% rise. The VanEck Semiconductor ETF (SMH) rose 16% in the past month, with Broadcom (AVGO), Microchip Technology (MCHP), and Micron (MU) also showing strong monthly gains of 26%, while Intel (INTC), Qualcomm (QCOM), AMAT, Synopsys (SNPS), and Cadence Design (CDNS) lagged, with SNPS and CDNS posting negative returns in May, amidst new White House rules on chip design in China. Cybersecurity firm SentinelOne (S) faced a sharp 11.6% stock decline after lowering its full-year guidance and experiencing a widespread operational outage, placing the stock 40% below its November high.

Key Decisions for Investors

• Investors should monitor uranium and nuclear-related stocks for potential consolidation or profit-taking after May's substantial rally, while noting they remain below prior peaks, suggesting further upside potential if momentum continues.
• Consider closely watching key biotechnology stocks for catalysts emerging from the upcoming ASCO conference, as sector ETFs CNCR and XBI are significantly off their highs, potentially offering selective opportunities despite recent underperformance.
• In the semiconductor space, differentiate between strong performers like Nvidia, Western Digital, Broadcom, Microchip, and Micron, and laggards such as Intel and Qualcomm, while remaining cognizant of the implications of new US regulations on chip design in China.
• Exercise extreme caution with SentinelOne, given its lowered full-year guidance and significant operational outage, and await clear signs of business stabilization and resolution of system vulnerabilities before considering new or maintaining existing positions.