Afternoon Note
Major indices are moving higher as investors react to the latest round of earnings and this morning’s economic data.

Technology (XLK) is in the lead, with the roles reversed from yesterday, as software is lagging and semiconductor and hardware names are pushing the sector higher. Consumer Discretionary (XLY) is the runner up and getting a boost from Tesla (TSLA), after the company received its largest semi-truck order ever for 370 electric Class 8 trucks from WattEV. While on the other hand, Health Care (XLV) and Financials (XLF) are lagging.

China’s DeepSeek is aiming to raise $7.35B in its first ever funding round and could value the company north of $50B. Notably, this is China’s largest AI round yet.

Meanwhile, SK Hynix is reportedly receiving offers from big tech names to invest in dedicated memory production lines and finance EUV machines for production, as well as some deals providing 30% - 40% of cash up front.

May’s Michigan Consumer Sentiment Index dropped to 48.2 from 49.8 and below estimates of 49.5. The dip was largely due to the Current Conditions Index falling to 47.8 from 52.5, partially offset by the Expectations Index edging higher to 48.5 from 48.1. Notably, inflation expectations eased, with year ahead expectations falling to 4.5% from 4.7% and 5 year inflation expectations declining to 3.4% from 3.5%.

Have a great weekend!
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