Is U.S. stock market rally going to run out of fuel? Yardeni weighs in

Yardeni Research says the U.S. stock rally that began March 31 remains intact despite oil topping $100, software-sector weakness and Middle East tensions. Yardeni points to resilient economic data — low jobless claims and strong April flash PMIs — and sees sentiment (bull/bear ratio) not yet extreme enough to halt the rally. The firm warns some manufacturing strength reflects precautionary inventory building and notes futures expect oil to decline over the next 12 months. Market moves included major software losers (ServiceNow plunged roughly 18%, IBM down ~7–8%) and a rotation into hardware and semiconductors as Intel jumped sharply after upbeat results. Yardeni’s view is cautious but not bearish: the rally has momentum, but pockets of risk and structural shifts in tech warrant vigilance.