Dear Readers,

Stocks fell on Wednesday as volatility in Nvidia, a leader in artificial intelligence, threatened one of the few remaining bright spots for traders amid rising yields.

At 11:00 AM ET, the Dow was down -353.88 points, or -0.9108%, at $38498.99. The Nasdaq Composite lost -62.7871 points, or -0.3327%, at $18806.652. The S&P 500 declined -26.41 points, or -0.4977%, at $5279.62. Among the 11 major S&P 500 sectors, 6 showed positive movement, with Consumer Cyclical leading the way with a 0.82% increase.

The downturn was driven by the 10-year Treasury note yield rising for the second consecutive day, reaching over 4.59%. On Tuesday, the yield surpassed 4.5% after a Treasury Department auction saw weak demand, unsettling stock investors.

Despite the mixed start to the shortened week, major averages are set to close the month with significant gains. The S&P 500 has risen nearly 5% in May, the Dow about 2%, and the Nasdaq over 8%.

These gains come even as traders have reduced their expectations for Federal Reserve rate cuts. According to the CME FedWatch Tool, there is a nearly 54% chance that rates will remain steady in September.

Top Movers: Under $10

Innovative Eyewear Inc (LUCY) is up 156.10% today to trade at the current level of $1.05. This comes after Innovative Eyewear, Inc. announced the launch of its the Eddie Bauer Smart Eyewear collection. This new line includes voice access to ChatGPT and introduces the world's first rimless smart eyewear design.

Brand Engagement Network Inc (BNAI) zoomed 60.63% in today’s trade to $2.04. This rally can be attributed to news that Brand Engagement Network Inc. announced it has closed a private placement with existing investors of its common stock and warrants to purchase common stock in the aggregate amount of $4.95 million, providing the Company with increased financial flexibility to continue the development of its human-like, business-safe conversational AI assistants.

In current trading, AST SpaceMobile Inc (ASTS) stock is at $7.63 following the news that AST SpaceMobile, Inc and Verizon (VZ) are all set for a strategic partnership with a commitment of $100 million from Verizon, to provide direct-to-cellular AST SpaceMobile service when needed for Verizon customers.

D-Wave Quantum Inc (QBTS) rose 12.86% in the early hours of today's trading to move at $1.58. The strong performance of QBTS stock came as investors were encouraged by the announcement by the company that it has been featured in a Wall Street Journal article on quantum computing, which highlighted its technology’s strengths in tackling real-world optimization problems.

In the current trading session, Banzai International Inc (BNZI) jumped 7.36% to $0.19 over a previous close of $0.18 after the marketing technology company reportedly closed a public offering for its shares.

Ex-Dividends Stocks

Popular Inc. (BPOP) is about to trade ex-dividend tomorrow, meaning that investors who buy the stock after tomorrow will not be eligible for the next dividend payment. The company's next dividend payment will be $0.62 per share. The company has fixed May 30 as the record date for the same and will pay the actual dividend on July 01. Last year, the company distributed a total of $2.34 to its shareholders. Based on the last year's worth of payments, BPOP has a trailing yield of 2.69% on the current stock price of $87.12.

Another stock that is shelling out dividends tomorrow is Cathay General Bancorp (CATY), having a market capitalization of $2.60B. It will pay a dividend of $0.34 per share, the payment date of which is June 10. Currently, the stock is trading at a trailing dividend yield of 2.85%.

Shares of Enerplus Corporation (ERF) will be the talk of stock market on Thursday as the stock will turn ex-dividend. The company's next dividend payment will be $0.07 per share, and in the last 12 months, the company paid a total of $0.25 per share. Last year's total dividend payments show that ERF has a trailing yield of 1.22% on the current share price of $20.42.

Tomorrow, Goldman Sachs Group, Inc. (GS) is also set to go ex-dividend tomorrow. The next dividend payment from GS will amount to $2.75 per share. May 30 has been designated as the record date for this dividend, with the actual payout scheduled for June 27. In the previous year, GS distributed a total of $10.75 to its valued shareholders. Considering the cumulative dividend payments from last year, the trailing yield for GS stands at 2.36% based on the current stock price of $456.08.

Home Depot, Inc. (HD) will be paying out a dividend of $2.25 per share to shareholders holding their shares as of the close of the business hours on the record date of May 30. Over the past 12 months, HD has paid out a total of $8.52 per share in dividends. Based on the total dividends paid out last year, HD boasts an impressive trailing yield of 2.63% on the current share price of $324.08.

Crypto Market Highlights

• The cryptocurrency world is buzzing with excitement as the Volatility Shares 2x Ether ETF (ETHU) begins trading on June 4th. This marks a significant milestone, being the first leveraged ether (ETH) ETF approved in the US, following a similar leveraged bitcoin ETF launched last year.

• The Thai government has unveiled a new visa category specifically designed for digital nomads and freelancers. While reports suggest this visa could allow them to work in the country for nearly a year, details regarding potential tax implications and income requirements remain unclear.

• According to a Bloomberg report, Deutsche Bank is currently testing a platform built on the Ethereum network. This move indicates potential future involvement in the growing blockchain space.

• In a surprising turn of events, the US District Court of Utah dismissed the SEC's case against Debt Box. However, the court did impose a hefty fine exceeding $1.8 million on the SEC itself, citing misconduct by the regulatory body.

• In an interview with BeInCrypto, OpenSea CEO Devin Finzer expressed unwavering confidence in the future of non-fungible tokens (NFTs) despite current market fluctuations. Finzer pointed to ongoing growth, emerging trends, and new partnerships as indicators of a positive outlook for digital assets.

Most Shorted Stocks

Maxeon Solar Technologies Ltd (MAXN) was one of the most shorted stocks as of latest short interest figures, with 46.39% short interest. The days to cover ratio, a measure of how long it would take for all the short positions to be covered based on average trading volume, is 5.2 Days to Cover. This represents a change of 410000 shares, which corresponds to a +2.92% increase in short interest. The total value of the shares held short is estimated to be around $48.3 million. The average daily volume stands at 2.86M shares, and the market capitalization of the company is $176.29M.

The Arbor Realty Trust Inc. with the symbol ABR currently has a short interest of 39.44%. The short interest has changed by 1810000 shares. The days to cover ratio stands at 18.5 Days to Cover. The estimated value of the shares held short is approximately $973.85 million. On an average day, 3.99M shares are traded, with the company's market capitalization totaling $2.47B.

The stock BYND has a current short interest of 40.38%. The short interest percentage has experienced decrease of -2.17% while there was a change of -550000 shares in short interest. The ratio indicating the time required to cover short positions is 6.4 Days to Cover. Trading activity averages at 3.05M shares per day, while the company's market capitalization stands at $458.70M.

AI Stocks to Watch

According to our ST Score evaluation, ST Microelectronics (STM) emerges as a high-quality stock in the AI industry, attaining an impressive score of 57.0. The stock's valuation, profitability, and stock sentiment are strong. Additionally, it is neutral in terms of performance, growth, financial strength, Piotroski Score, and forecast.

Our ST Score also classifies Aehr Test Systems (AEHR) as a high-quality AI stock today, presenting a Score of 58.0. The stock has strong fundamentals in terms of profitability, and financial strength. The value, performance, growth, stock sentiment, Piotroski Score, and forecast are neutral.

Another stock in the category, Li Auto Inc ADR (LI) has the ST Score of 58.0, which means that the stock carries the potential for higher returns. The stock is strong in profitability, and financial strength. Value, performance, growth, stock sentiment, piotroski score, and forecast suggest a neutral outlook.

Enersys (ENS) stock has the ST Score of 54.0 which implies that the AI company has a high probability of beating the market. The stock's strengths lie in its profitability, and Piotroski Score, but its weaknesses are in its growth, and financial strength. However, it shows neutral outlook in value, performance, stock sentiment, and forecast.

Aptiv PLC (APTV) currently has the ST Score of 56.0, which signifies a huge upward potential. The AI stock's strong points are its profitability, and growth. The stock's value, performance, financial strength, stock sentiment, Piotroski Score, and forecast indicate a neutral outlook.

Best Regards,
Stocks Telegraph Team