9AM Hour: S&P Aims For An 8-Week Win Streak, The Fed's Warsh Era, AMD Jumps 5/22/26

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Jim Cramer (0:59)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:12)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker, Mike Santoli, here at Postal Nine of the New York Stock Exchange. Cramer and Faber have the morning off. Heading into Memorial Day weekend with futures finishing strong, Dow record high, S&P looking for an eighth consecutive weekly gain. Got some relief in yields, tenure four and a half. Kevin Warsh sworn in as Fed Chief today. Oil is lower on the week, Brent back to 103 We do have hopes for more progress regarding breaking the deadlock with Iran. Our roadmap begins with a new era at the Fed. Kevin Warsh said to be sworn in today as Chair of the Central Bank. Also had Uranium a sticking point in the US-Iranian talks to end the war.

And the AI trade AMD rising after Lisa Su announced the company will ramp up Taiwan chip production. We do remain on SpaceX IPO watch, including the banks benefiting the most from that massive offering.

Let's begin though with the markets as the S&P aims for another week of gains. Mike, there have been an interesting series of psychological adjustments here on these headlines regarding Iran.

Michael Santoli (2:12)

There really have. So the eight week win streak, assuming we hold that today, I always think of them as quirks, but not flukes, right? Obviously, a lot has to break right to have the weekly streak stay intact. But they're not flukes in the sense that usually it does mean there's a very strong, resilient underlying trend that's being manifest. They also tend not to end at some kind of an ultimate peak of the market. Usually it's not like the final crescendo is this eight week win streak. Now, this week, there has been a little bit of nuance below the service because most of this period of time, the market has been just completely rushing urgently into the AI trade. It's been MegaCap Tech that's really carried the S&P forward. Now, this week, I think you see these headlines that maybe we can, maybe we can't believe about moving toward negotiations. Oil came in off the highs, yields came in off the danger zone, and then you'd see things like consumers starting to act better in equal weight S&P outperforming. But in general, it's been the AI trade has kept us in the game and has extended these gains. We are below a week ago Thursday's highs. Remember, 7,500 and a little bit was the ultimate intraday high. So we're kind of consolidating around the edges of that. It's hard to poke holes in the action except to say, you know, if anything comes to cause a rethink of the AI trade, the indexes are going to feel it.

Leslie Picker (3:34)

That, but then there's also higher yields. They've essentially brushed off higher energy prices that they've essentially brushed off brushed off in a longer trend.

Does there ever get to a point where that that reverses and the market does start paying attention to those again?

Michael Santoli (3:50)

I think that that's why you have to go a layer down and say, are we brushing them off or are we just digesting, showing them to have an impact in isolated areas. Right. So take a look at the NASDAQ 100 relative to the median consumer cyclical stock, equal weighted consumer discretionary. We have that chart. Right. So this is basically telling you, that's the equal weight S&P.

But that does show you the same story. Equal weight S&P is sideways for months, and the NASDAQ 100 is carrying things. Now, consumer discretionary is really gotten hit. Guess what though? It barely matters. Because consumer discretionary of the S&P outside of Amazon and Tesla is less than five percent of the S&P 500