The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) both recorded new record highs at Monday's market close, getting a good start to an eventful week: the Federal Reserve's June FOMC meeting is adjourning and May's CPI (Consumer Price Index) print will be released on Wednesday, June 12.

Yahoo Finance Markets Reporter Josh Schafer comes on Asking for a Trend to break down the biggest market themes from the trading day, including Apple's (AAPL) headlining unveil of its "Apple Intelligence" initiative at its Worldwide Developers Conference (WWDC).

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Luke Carberry Mogan.

Video Transcript

The S and P 500 NASDAQ notching fresh records as investors look ahead to key inflation data and the Fed's policy decision.

Of course, more on the trading day takeaways.

Let's get to Yahoo finance his very own, Josh Schafer Josh.

Yeah, Josh record highs for the S and P 500.

But as you were just talking about the big story today in the market really was Apple and I want to zoom out and just think about the stock reaction that we had from Apple.

So shares fell today.

But I think you could really probably reason this might been a little bit of a buy the rumor, sell the news type of event when we look closer at the stock price action we've seen in Apple.

So what I pulled up here, Josh is a two month shares were up 15% over the last two months.

And that's as the rumors started percolating about what they were gonna be doing with A I the partnership with Open A I, we we've known about a lot of this in bits and pieces and I think that's really where it got priced in, right?

And today I don't know how, what you think about it.

I don't know how much new and substantial we really learned about the plans thus far.

And so maybe it makes sense that shares slide a little bit after getting close to a record high again.

It's, you know, also Josh, I, I wonder how much part of this is.

It's really hard for Apple to surprise any more consumers investors.

I mean, just the reporting has got a lot better and, and there's reporters out there, they lay out the show beforehand.

So that's one thing.

So it's hard to get that one more thing kind of price and to look at that pop heading into it.

I mean, you had a nice run there.

Yeah, you're sitting close to a record high.

It should never be shocking if you're not able to just keep driving that stock higher, right?

I feel like the only stock these days that's able to do that is maybe NVIDIA, but in general, that's a hard thing to ask.

WWC Josh, it's not, you know, it is not typically an event investors look to it like, ok, this is, this is an event that pops the stock, right?

Yeah, it, it wasn't an iphone launch, right?

Or something to that extent.

And the other thing that I think sort of fits into this, our second takeaway just pleasing investors with A I has been a little bit harder this year.

Interesting chart from Bespoke here.

So what it does is it takes a look at stocks with over a trillion dollar market cap.

Hint, there's only six of them.

We can name them right now.

It's our mag seven companies minus Tesla and then companies without a trillion dollar market cap.

We're looking at the second quarter performance and the year to date performance.

And just really what sticks out here is that A I trade has not been encompassing everyone, right?

It's been NVIDIA some other big names.

We just talked about Apple perhaps benefiting from some A I hype but it hasn't been the C three A is of the world, some of the smaller companies that really rallied last year.

They're just not quite participating right now.

And I think that speaks to maybe what we're seeing in the market as a whole, a lot of large cap bias right now, but also just where we're at in the A I trade, maybe it's a little Tre Tyre.

I wanted to Josh get your thoughts about whether maybe after runs like this, maybe you're starting to get some, some investors scrutiny about, you know.

All right, I'm gonna divide really the, the A I market between those who can talk to me about actual use cases given the data on monetization versus what can feel sometimes like marketing flow.

Yeah.

No.

When we, when we think about this number here and the companies that are in it, think about a company like Microsoft or Meta, right?

They're telling you A I is contributing a certain amount to Azure revenue growth A I is contributing a certain amount to meta's reels.

The smaller companies aren't able to do that.

An investor and an analyst.

I can start modeling that.

Right.

Yeah, you can actually sort of put it together a little bit better.

And the final thing here, this was out from the New York fed today.

I thought it was interesting.

Consumers have not felt this confident about stocks going up in the next 12 months in about three years.

Is that too confident?

Too positive?

So when you take a look at other measures of sentiment, you set me up for my final chart.

This is this is Bank of America sell side indicator, Josh.

And what this takes a look at is how many uh the allocation that sell side analysts are recommending to stocks right now.

It's right here at about 55.

If we were get up to this blue line at 58 that's when Sr Subramanian and her team at Bank of America say, all right, press the brakes.

Everyone's a little too bullish right now.

Yeah.

And right now, we're not quite in that space yet.

And I think that's been interesting because we've talked a lot about the markets have record highs, everyone's so bullish, everyone's so bullish.

But metrics like this, we still technically have more bullishness to go, which I don't know, I like bullish fish.

Josh, no, it could be exciting.

Who doesn't?

Yeah, Joshua Shaver.

Thank you, my friend.