Stock Market Outlook: Energy Leads as Transports Turn Bearish
Stock index futures are trading above fair value heading into Tuesday as crude oil pulls back slightly while remaining above $100. Gold is ticking higher in the pre-market but not enough to change the current trend. The transportation sector is back under pressure after the dramatic rise and collapse of Avis Budget distorted the group’s performance. FedEx, UPS, Expeditors, and other transportation stocks gapped lower and returned to sell signals.
Energy remains a key leadership area with gasoline hitting a new high and natural gas returning to a buy signal. Canadian and U.S. energy stocks posted modest gains. Meanwhile, technology stocks moved back to buy signals, major U.S. indexes showed mild weakness, and the VIX is testing resistance. Overall, no major damage was done Monday and early signs point to buying at Tuesday’s open.
Stephen Whiteside
Tuesday, May 5, 2026
