It was another squeaker yesterday, as the S&P 500 inched out a small gain, but the real story continues to be individual monster moves.

Seeing double-digit gains in names that are already in the stratosphere is exhilarating and a little unnerving.

Fewer Winners

Market breadth was just about even, although new highs outpaced new lows.

In fact, over the past two months, only 22% of names have outpaced the S&P 500.  It is one of the thinnest rallies on record.

From Tailspin to Rocket Launch

It's hard to believe there were times this year when the market was among the lowest at the start of a new year. Now, the nine-week rally is one for the record books, and bodes well for the future (over the next five years).

There was green across the screen, but it was mostly momentum leading the charge. Value and quality got some action as well.

Come On Get Happy

Wall Street pros who missed this move continue to find reasons for it to implode. Valuations are not egregious, but it feels surreal.

We have never seen an industrial revolution as rapid as the artificial intelligence (AI) revolution and expanding ecosystem.

So, of course, retail investors expect the rally to continue for much longer. It’s not unreasonable.

The Fear & Greed Index is nearing ‘neutral,’ which means there is a long way to go before it gets irrational.

The smart money is positioning for a fall, which could make things worse for them.

Today’s Session

It's been a quiet morning, but lots of news is still coming out of Computex in Taiwan, moving Technology (XLK) stocks higher.

ADP came in better than expected (consensus: 120,000) as economic data continues to surprise to the upside.

Comments

Private Employment: How soon we forget. The Big Beautiful Bill eliminated Medicade unless you HAD a JOB, or were a volunteer within THREE MONTHS AFTER 1 JAN. 2026. In March the three months was up. This likely contributes to the recent increase in jobs. Fleming Cook Hobbs on 6/3/2026 10:01:59 AM

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