US stocks hit record highs last month — Wall Street's best month since 2020. Investors bet that blockbuster AI spending would outweigh broader economic concerns. But May kicks off with fresh headwinds. OPEC+ added 188,000 barrels per day to global supply. Energy options traders responded fast. XLE saw a cluster of put activity out to late June. DVN carries bearish bets stacked through July.
The week's most eyebrow-raising headline: GME has proposed to acquire EBAY at $125 per share. The offer, disclosed early Monday, sent shockwaves through both stocks. GameStop — largely a cash-rich shell after its meme-era fundraise — is making a bold pivot. The deal would mark one of the stranger M&A moves in recent memory.
Short seller Jim Chanos warned that AI-driven capital spending may inflate S&P 500 earnings estimates. That caution echoes in options flow. , , and all carry heavy negative options bets through mid-summer. Analyst targets on and were also trimmed Monday. Big Tech layoffs are accelerating as AI infrastructure costs bite into headcounts.
The FAA launched an investigation after a UAL flight landing at Newark struck a light pole on the New Jersey Turnpike. The incident puts fresh scrutiny on BA and US aviation safety protocols.
Over 1,800 companies report this week. Cencora, Albemarle, and Akamai headline the mid-week slate. Bears are still heavily short Wolfspeed at 50% of free float. Watch for volatility around any semiconductor earnings calls.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
