Salesforce shares surged roughly 22% on the week, pushing the stock into overbought territory as the S&P 500 closed out a winning week. J.M. Smucker also joined the list of stocks flagged as overbought after a beat-and-raise quarter, while Nvidia's earnings lifted the broader chip sector.
Chip rally pushes the index into overbought territory
The S&P 500 rose 0.5% on the week, as traders weighed an in-line core inflation reading and a blockbuster earnings report from Nvidia against persistent tensions in the Middle East. Nvidia's outsized revenue growth projections for fiscal 2028 spilled over into the broader chip sector and lifted memory stocks. The rise pushed some index components into overbought territory, as measured by the relative strength index (RSI), a momentum indicator that tracks the speed and size of price changes.
Stocks are considered overbought once their RSI exceeds 70, and the screen captured names that were also up more than 5% on the week.
Salesforce sheds its "Saas-pocalypse" narrative
Shares of Salesforce surged roughly 22% on the week, propelled by a beat-and-raise quarter and a new partnership with Anthropic. The announcement helped the stock shed AI-triggered concerns about a broader decline in the software sector that had dogged it for the first half of the year. According to CNBC: "This 'Saas-pocalypse' narrative has been such nonsense," Salesforce CEO Marc Benioff said, adding that customer attrition is near its lowest level ever.
Smucker's tariff refunds boost earnings
J.M. Smucker also reported a beat-and-raise quarter, with net sales up 5% and adjusted earnings per share up 71%, a gain that included an 84-cent uptick from tariff refunds. CEO Mark Smucker said costs have moderated on coffee, letting the company pass along some price relief while supporting volume during the quarter.
Source: US Top News and Analysis
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