The U.S. stock market is experiencing a significant rally, overcoming challenges such as high crude oil prices and geopolitical tensions, while benefiting from strong earnings reports from major companies. With over 100 S&P 500 firms set to report in the upcoming week, attention is particularly focused on semiconductor giant Advanced Micro Devices (AMD), which is expected to release its earnings after the bell on Tuesday. AMD’s stock has surged 270% over the past year, making it a key player in the ongoing bull market driven by artificial intelligence.

Traders are anticipating a 7% price movement in AMD’s stock, with options data indicating a bullish sentiment, as call volumes significantly outpace puts. Meanwhile, Palantir, another favorite among retail traders, has seen a similar trend with a greater number of calls being bought than sold, suggesting optimism ahead of its earnings report on Monday.

The convergence of AMD and Palantir’s earnings could present a unique opportunity for investors, as both hardware and software sectors may rally together, potentially reversing recent underperformance. With major indices hitting new highs and volatility at a low, the momentum favors bullish strategies in the tech space.

StoxFeed tracks this as a market signal: AI and semiconductor stocks are driving tech sector gains

Source: cnbc.com