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The S&P 500 was relatively unchanged on Monday, while oil prices advanced, even as Nvidia led technology higher following the launch of a new chip for PCs.

The broad market index traded around the flatline, while the Nasdaq Composite gained 0.1%. The Dow Jones Industrial Average lost 181 points, or 0.4%.

Oil prices rose to start the trading week. West Texas Intermediate crude futures rose 6% on Monday to around $92 a barrel, while Brent crude climbed 5% to around $95. In May, the U.S. benchmark posted its steepest monthly decline since April 2025, tumbling nearly 17%.

1. Leader industry as of 5:05 pm

Internet-Network Sltns: CoreWeave(CRWV.US) , NEBIUS(NBIS.US) , F5, Inc.(FFIV.US) , Crexendo, Inc.(CXDO.US) , RADCOM Ltd.(RDCM.US) , A10 Networks, Inc.(ATEN.US) , RADVIEW SOFTWARE(RDVWF.US) 

Sector Logic: Internet-Network Sltns

Core Logic: AI and digital transformation are the core drivers for network solutions demand. Generative AI and Agentic AI are pushing network architecture towards higher bandwidth, lower latency, and greater intelligence. Enterprise cybersecurity demand is surging as Agentic AI expands the attack surface, transforming security from "optional" to "essential." The普及 of cloud-edge-device collaboration and SASE (Secure Access Service Edge) architecture is driving structural growth in the network solutions market.

• Goldman Sachs believes Agentic AI will drive long-term structural growth in cybersecurity demand, and that software has crossed the acceptance/adoption threshold, allowing quality cybersecurity stocks to thrive in the AI era.
• J.P. Morgan is bullish on the cybersecurity sector, citing Agentic AI materially expanding enterprise network attack surfaces and accelerating vulnerability discovery and exploitation timelines.

Market Space:

• ServiceNow management laid out a base case target of $30 billion in revenue by 2030, while continuing to improve margins and free cash flow.
• Goldman Sachs' software coverage initiation report estimates the total addressable market (TAM) for all workflows (Employee, Technical, Customer, Creator, Security) at approximately $260 billion by 2027, with the security segment's addressable market at ~$6 billion.
• Morgan Stanley believes we are in the early stages of a potential $10 trillion capex investment cycle driven by AI-powered productivity gains. AI adopters are expanding margins at twice the rate of the MSCI World and S&P 500.

Market Dynamics:

• Cybersecurity Sentiment Recovery: Fortinet (FTNT) surged +20% post-earnings, with product revenue up +40.5% YoY. AI data center east-west traffic is driving a security hardware cycle, lifting the entire cybersecurity sector (CRWD, PANW, ZS, etc.).
• Software Sentiment Improving Significantly: SNOW surged +30% on a stellar quarter, lifting cloud consumption names like MDB and DDOG. TMTB Evening Report notes the software sector is showing signs of mean reversion (relative to semis).
• Active M&A in Cybersecurity: ServiceNow announced the acquisition of Armis Security for $7.75 billion, its largest ever, to expand its security workflow (cyber-physical security) offerings.
• The market currently shows a "AI vs. Everything Else" divergence theme, where the Internet sector fell -2% even as broader indices rose, with the market only rewarding mega-cap companies as AI beneficiaries.

Stock Views (US Stocks):

• ServiceNow, Inc.(NOW.US)  – Goldman Sachs initiates with Buy. The agent orchestration layer across multiple vendors should drive significant value. Management targets $30B revenue by 2030, driven by AI, Now Assist, cyber risk, workflow data fabric, and CRM.
• Palo Alto Networks, Inc.(PANW.US)  – J.P. Morgan bullish. Views PANW as core beneficiary of Agentic AI-driven demand, with favorable 2H cybersecurity tailwinds.
• Fortinet, Inc.(FTNT.US)  – Up 20% post-earnings. Q1 revenue $1.85B (+20% YoY), product revenue +40% YoY, billings +31% YoY. AI data center east-west traffic driving hardware refresh cycle.
• CrowdStrike(CRWD.US) – Could benefit from 2H cybersecurity tailwinds alongside PANW.
• Datadog(DDOG.US)  – Goldman Sachs initiates Sell on budget optimization pressure. But up 30% post-earnings. Q1 revenue $1.01B (+32% YoY), FY guide raised to $4.3B — seen as software sector recovery signal.
• Cloudflare(NET.US)  – Morgan Stanley maintains Overweight & $245 PT; key enabler of edge AI with TAM >$116B.

2. Breaking Out Today as of 5:00 pm

3. Near Breakouts as of 5:00 pm

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