After a brief hiatus, stock market bulls regained control last week, pushing the S&P 500 back to the top of its all-time high. The index has risen for eight consecutive weeks since March 30, when it hit its lowest point during the Iran game, marking the longest winning streak since the end of 2023, when they won nine in a row. With Friday’s modest gains, the S&P 500 index is now less than 0.4% below its May 14 all-time high of 7,501. It was a big change from earlier in the week, when the boom appeared to be in jeopardy due to archenemies: rising oil prices and bond yields. Oil prices are once again well above $100 a barrel, and the 30-year Treasury yield on Tuesday hit its highest level since 2007. Unsurprisingly, stock prices didn’t like it. The S&P 500 closed Tuesday on the back of three stock market declines since May 15th, a losing streak not seen since March 26th, 27th, and 30th. As in the early days of the Iran war, stock prices were once again taking cues from the oil and bond markets. Enthusiasm for artificial intelligence alone wasn’t enough to break through. .SPX 3M Mountain S&P 500 3 Months The market turned a corner on Wednesday. Oil prices and bond yields fell, and the S&P 500 index boomed. The stock market rally has begun, similar to the March 31st rally. Investors grew optimistic after President Donald Trump said the United States is in the “final stages” of peace talks with Iran. The S&P 500 didn’t stop there, continuing to rise through Thursday and Friday. It wasn’t just hopes for a resolution that drove last week’s actions. AI trading hub Nvidia reported a strong quarter Wednesday night, but it wasn’t strong enough to boost its stock. Also on Wednesday, SpaceX filed for the largest initial public offering in history. The remarkable comeback of cybersecurity stocks, including the club name CrowdStrike, continued. Overall, the S&P 500 rose 0.9% in five days. The Nasdaq and Dow Jones Industrial Average, which are heavy on tech stocks, rose 0.5% and 2.1%, respectively. The blue-chip Dow Jones Industrial Average ended this week at an all-time high. Now let’s take a closer look at the forces driving last week’s actions. Nvidia’s Quarter Nvidia announced another blockbuster quarter late Wednesday. The company achieved beat-and-raises that far exceeded analysts’ expectations, with CEO Jensen Huang saying, “Demand is going parabolic.” This only strengthens our view that Nvidia is a must-own name in the AI race, and we raised our price target from $230 to $260 per share. Still, the stock fell 2.6% in subsequent trading and fell another 0.5% on Friday. This is a frustrating reaction given that the stock is incredibly cheap relative to its peers and has many avenues for further growth. The post-earnings share price drop isn’t all that surprising to us. No matter how good the numbers look, that has been the pattern for the past few quarters. At least Arm’s stock, which shares the same club name, jumped on this release. Nvidia highlighted strong demand for its new Arm-based Vera CPU (central processing unit). CFO Colette Kress said NVIDIA expects total CPU revenue to be close to $20 billion this year. This is good news for Arm since the company receives royalty payments. Arm shares soared more than 16% on Nvidia’s gains and are up 46% for the week. That was our top performer. However, the stock price has been rising for some time, and is up about 81% since initiating the position in April. As Jeff Marks, Director of Portfolio Analysis, wrote in Friday’s Homestretch, this parabolic movement is why we sold some on Monday and perhaps some again next week. Nvidia’s gains from Goldman’s trade trifecta weren’t the only driver of the club’s stock’s weekly rise. SpaceX filed for its long-awaited initial public offering (IPO) on Wednesday, sending Goldman Sachs shares higher after the company won a lead role in the deal. Mr. Goldman was described in SpaceX’s prospectus as a coveted “left-wing” position. Investment banks will likely take home the lion’s share of fees by leading some of the most important parts of equity debuts. SpaceX should be particularly lucrative for Goldman, as it is expected to be the largest IPO in history. An initial public offering for Elon Musk’s rocket company, valued at $1.25 trillion, could raise more than $75 billion. This would be more than three times the size of Alibaba’s $25 billion IPO in 2014, the largest U.S. initial public offering to date. At the time, underwriting fees paid to banks for Alibaba’s IPO were more than $300 million. This is equivalent to approximately 1.2% of the e-commerce giant’s total transactions. Applying the same calculation to SpaceX could bring in more than $900 million for participating banks. “This is a huge win for Goldman Sachs, proving that this Investing Club stock is in pole position among all the major companies,” Jim said. OpenAI may also be one of the “big players.” CNBC reported Wednesday that Goldman and Morgan Stanley are working to bring the AI startup to the public. This is another monster deal, as OpenAI recently announced a record-breaking $122 billion raise at a post-money valuation of $852 billion. Goldman could also buy rival Anthropic, as Claude’s creator considers plans to go public. Meanwhile, Anthropic is in talks with investors to raise funding at a valuation of $900 billion. Overall, more deals for Goldman means more revenue for its important investment banking division, which is the main reason the company has maintained its stock price. It was great to see investors recognize the value of Goldman’s trading lines last week as the stock continued to break records. Bank stocks rose about 5% for the week. CrowdStrike Comes Back It was another great week for CrowdStrike. The stock rose nearly 12% in five days as Wall Street analysts sounded bullish, and the market continued to support our belief that the cybersecurity giant is not threatened by AI adoption and should not be lumped in with general-purpose enterprise software stocks. At least seven Wall Street firms raised their price targets on CrowdStrike last week. The most notable include the KeyBanc, which increased in price from $525 to $700. Although a catch-up call, the updated PT suggests a nearly 6% upside from Friday’s closing price of $663. Analysts said the outlook for security demand was improving. Cantor Fitzgerald raised it from $550 to $700 a few days later, citing “very strong” first-quarter checks and improved revenue. Stifel, Morgan Stanley, Trust, TD Cowen and Barclays also raised their targets. The club took a similar step on Monday, raising CrowdStrike’s price target from $500 to $650. Peer Palo Alto Networks also raised its price from $200 to $255. Now that both stocks have surpassed that level, they may need to be reevaluated. That will probably be decided after the June financial results. CrowdStrike stock has been on a winning streak for six consecutive weeks. It rose 11.7% last week. It had risen nearly 12.6% the previous week. And the week before that, it was up nearly 16%. Because of this significant progress, we have cut rates twice since Monday and downgraded CrowdStrike’s rating to a 2, the equivalent of a hold. It’s not because our beliefs have changed. Rather, it is an opportunity to take advantage of a parabolic movement that may not be sustainable in the long term. CrowdStrike had a very volatile 2026, so we’re being cautious. Concerns about AI disruption previously swept across cybersecurity groups and software in February and March. But the cyber narrative has changed since Anthropic’s Project Glasswing was launched. The market always knows what we see. New AI models will accelerate demand as the risk of new cyberattacks is higher than ever. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. 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