Chip Stock Surge Sends Markets to Record Highs | The Close 5/8/2026

Watch on YouTube ↗  |  May 08, 2026 at 22:26  |  1:28:29  |  Bloomberg Markets
Speakers

Summary

Markets closed at record highs led by a semiconductor surge, with the S&P 500 posting a sixth straight weekly gain. Consumer sentiment fell to a record low on inflation worries, but strong earnings supported the rally. Guests discussed broadening AI trade, favoring small-mid caps and international equities, and warned of prolonged higher oil prices.

  • S&P 500 and Nasdaq closed at record highs with sixth straight weekly gain.
  • Philadelphia Semiconductor Index surged 5.5% led by NVIDIA, Micron, Qualcomm.
  • University of Michigan consumer sentiment fell to record low.
  • Oil prices remained elevated near $100/barrel.
  • Kara Murphy favored small/mid caps and international equities.
  • Gene Sperling predicted higher energy prices for longer.
  • DraftKings CEO discussed prediction markets and stock buybacks.
  • Rocket Lab shares soared on beat and raise quarter.
Trade Ideas
Kara Murphy Chief Investment Officer, Kestra Investment Management 6:48
Favor small-mid caps over mega caps
The market is broadening beyond mega-cap AI names. Earnings acceleration is seen in mid and small-cap companies, supported by free cash flow margin expansion. This broadening should continue as AI adoption moves from infrastructure to implementation, benefiting smaller companies. Therefore, favoring small to mid caps over mega caps is warranted.
U.S. small-mid cap stocks HIGH
Kara Murphy Chief Investment Officer, Kestra Investment Management 8:03
Prefer international equities for diversification
Valuation spreads between the U.S. and the rest of the world are at extreme levels, and earnings are starting to accelerate outside the U.S. as well. This creates an opportunity for international diversification, even though the U.S. has outperformed for 15 years. Long waves suggest periods of U.S. underperformance are likely, so maintaining exposure outside the U.S. is important.
ACWX HIGH
Gene Sperling Fmr. National Economic Council Dir. 28:44
Energy prices to stay higher for longer
The Iran conflict is likely to keep energy prices elevated for a prolonged period due to minesweeping, restart costs, insurance risks, and the longer the war goes on. Higher oil prices will feed into core inflation through fertilizer, food, airlines, and shipping surcharges, sustaining inflationary pressure.
WTI MED
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This Bloomberg Markets video, published May 08, 2026, features Kara Murphy, Gene Sperling discussing U.S. small-mid cap stocks, ACWX, WTI. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kara Murphy, Gene Sperling  · Tickers: U.S. small-mid cap stocks, ACWX, WTI