The tech rally and return of risk-on sentiment has the VIX at multi-month lows
Stocks are extending their rally today, with the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) each up 300 points, the tech-heavy latter heading for its 10th-straight gain. This would mark the Nasdaq's longest winning streak since 2021. The S&P 500 Index (SPX) is confidently higher as well, erasing losses wrought from the U.S.-Iran war and now a chip shot from all-time highs.
Oil prices are lower today, with Brent crude slipping back below $100 per barrel. As risk-on sentiment defies geopolitical tensions, the Cboe Volatility Index (VIX) is pacing for its fifth-straight loss and lowest close since Feb. 25.
Applied Digital Corp (NASDAQ:APLD) stock is seeing an uptick in options activity today. At last look, over 94,000 calls have changed hands, volume that's three times the average intraday amount and nearly five times the number of puts exchanged. The May 30 call is among the contracts seeing the most attention, with positions being bought to open. Applied Digital stock is up 11.4% to trade at $30.74 at glance, with no known catalyst other than broader tech sector tailwinds. Year to date, APLD is up 25.4%.
Bloom Energy Corp (NYSE:BE) stock is near the top of the New York Stock Exchange (NYSE), last seen up 23.3% to trade at a new record high $217.78. The fuel cell energy company agreed to supply Oracle (ORCL) with 2.8 gigawatts of fuel cells in an expanded deal. Jefferies upgraded BE to "hold" from "underperform" and raised its price target to $187 from $97 in response. Bloom Energy stock is up 1,116% in the last 12 months.
CarMax Inc (NYSE:KMX) stock is at the bottom of the NYSE, down 13.1% to trade at $42.17. Although the rental car giant reported fiscal-fourth quarter earnings and revenue above estimates, margins from shrinking used vehicle demand are weighing. KMX is still trying to hold onto its 10% year-to-date level, but is 36% lower in the last 12 months.