Wall Street's momentum trade accelerated last week as earnings beats and AI-fueled optimism drove massive rallies across tech and infrastructure stocks. Ten large-cap stocks emerged as top performers, with gains ranging from 32% to 57%, driven by better-than-expected earnings, raised guidance, and major partnerships in cloud computing, semiconductors, and space technology.

U.S. tech stocks reached record highs on May 7, 2026, as crude oil tumbled nearly 3% on hopes Iran will accept a U.S. memorandum to reopen the Strait of Hormuz. The Nasdaq 100 gained 0.4% to 28,706 while the S&P 500 rose 0.2% to 7,376. Earnings drove significant stock-specific moves, with major winners including AAON (+36%), Datadog (+30%), and H&R Block (+26%), while notable losers included Planet Fitness (-33%), Insmed (-22%), and Zoetis (-22%).

The Russell 2000 small-cap index trades at a significant valuation discount (19x P/E vs 27x for S&P 500) despite higher interest rates limiting growth for unprofitable companies. Analysts suggest now may be an opportune time to position in small-cap stocks, particularly those benefiting from infrastructure spending and domestic manufacturing. Two highlighted examples are Mueller Water Products and AAON Inc., both positioned to benefit from government investment and data center demand.

AAON, Inc. (NASDAQ:AAON) announced its Board of Directors has declared a quarterly cash dividend of $0.10 per share ($0.40 annually), payable on March 30, 2026 to stockholders of record as of March 18, 2026. The company is a global leader in HVAC solutions for commercial, industrial and data center environments.

Tesla announced ambitious plans to double capital spending to $20 billion in 2026, investing heavily in autonomous vehicles, humanoid robots (Optimus), and AI infrastructure while discontinuing Model S and X production. The move signals a strategic pivot from traditional EV manufacturing toward autonomy and robotics, though analysts remain skeptical about timeline feasibility given Tesla's history of missed deadlines. Meanwhile, Meta surged 9% on strong ad revenue and AI investments despite doubling CapEx guidance, while Microsoft fell 12% as Azure growth slowed despite strong OpenAI-related backlog.

AAON reported Q2 2025 results with net sales down 0.6% and gross margin contracting due to ERP implementation challenges. Despite production disruptions, the company saw strong growth in data center sales and maintains optimism about future margin improvements.

Comfort Systems (FIX) benefits from solid demand trends, especially across the technology and manufacturing sectors, accretive buyouts, and focus on shareholder value.

The market loves Alphabet's dividend and Tesla's mass market ambitions, but is less sold on Meta commingling AI and the metaverse.

Aaon (AAON) delivered earnings and revenue surprises of -13.21% and 7.90%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?

AAON enters a partnership with DOE to turn up the notch in commercial heat pump technology and its adoption using the Alpha Class air-source heat pumps.

AAON's fourth-quarter 2023 results reflect record net sales on the back of improved productivity and operational efficiencies, along with high booking trends strengthening prospects.

Comfort Systems (FIX) to expand and diversify its modular construction offering with the buyout of Summit.