AI Breakouts, NYC Politics, and 5 Stocks Making Big Moves Today

Markets are creeping higher this week, driven by renewed tech momentum and a sharp rally in Nvidia, which regained its spot as the world’s most valuable company on Wednesday, with a market capitalization of over $3.7 trillion. 

And today the chipmaker’s gains lifted the broader Nasdaq, as investors brushed off concerns about China's exports in favor of AI-fueled optimism.

Nvidia’s 69% revenue growth and 73% surge in its data center business show that enterprise demand for AI infrastructure remains robust, even as regulatory barriers rise.

At the same time, political shockwaves from the New York City mayoral primary added a layer of local uncertainty.

Progressive Assemblyman Zohran Mamdani pulled ahead of Andrew Cuomo, rattling municipal bond markets and pushing down shares of city-exposed banks, such as Flagstar. 

Mamdani’s platform of rent freezes, free public transit, and higher taxes on the wealthy represents a significant departure from the status quo.

It may usher in a new era of left-leaning policy in the financial capital of the U.S.

With earnings season on the horizon and Powell remaining silent on rate cuts, stock selection, not sector chasing,  continues to be the smarter strategy.

Here are five names we’re watching:

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Alphabet Inc. | GOOGL

Price: $173.55

Alphabet rallied 2.3% on Wednesday and is up modestly in after-hours trading, snapping back from a rough month.

While GOOGL is still down nearly 10% YTD, its fundamentals remain compelling: 18% expected EPS growth this year, over $78 billion in projected quarterly revenue, and a newly initiated dividend. 

The company trades at a 17.5x forward P/E, well below its peers in the AI and cloud space, while maintaining a PEG ratio of just 1.06.

Analysts remain cautiously optimistic ahead of July earnings, with a focus on search, YouTube, and Google Cloud. As AI continues reshaping how consumers and enterprises interact with data, Alphabet’s infrastructure and scale remain long-term assets. 

For now, price momentum is shaky, but any dovish Fed signal or earnings beat could quickly spark a retest of $180+.

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Flagstar Financial | FLG

Price: $11.00

Flagstar tumbled nearly 4% Wednesday, bringing its two-week slide to over 12%, largely due to fears about Mamdani’s proposed rent policies.

A citywide rent freeze could pressure Flagstar’s mortgage portfolio and trigger reserve builds, but analysts are urging calm. 

DA Davidson, Jefferies, and Citi all reaffirmed their Buy ratings, citing FLG’s CET1 ratio, improving credit quality, and tangible book value support.

At just 0.6 times price-to-book, the valuation appears deeply discounted.

Moreover, FLG recently posted a smaller-than-expected Q1 loss and has moved aggressively on legal actions to recover loans. 

While political volatility may persist until the NYC general election in November, many see the current pullback as an overreaction, creating an entry point for value-focused investors.

CVS Health Corp. | CVS

Price: $68.14

CVS is quietly mounting one of the strongest recoveries in large-cap healthcare, up nearly 48% YTD.

Investors are cheering the easing of regulatory risk in the UK veterinary sector, where the CMA’s initial findings have shown a surprisingly light touch. 

With the overhang lifting, CVS’s core fundamentals are getting new attention: an 11.5x forward P/E, 4.0% dividend yield, and improving margins.

Bullish theses also emphasize CVS’s scale across U.S. healthcare, from pharmacy to insurance, and its ability to withstand macro pressure through defensive cash flow.

While regulatory clarity helped spark the most recent leg up, analysts note that the stock still trades well below its 52-week high. 

If July earnings confirm margin stabilization and revenue growth, CVS may continue its upward momentum into Q3.

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U.S. Bancorp | USB

Price: $45.62

USB posted a modest gain Wednesday and remains one of the few large-cap banks offering both income and upside.

Its 4.46% dividend yield, paired with 8% expected EPS growth this year, provides a strong base for patient investors. 

USB has increased its dividend four times in the past five years and maintains a healthy payout ratio of 49%, signaling stability.

While the banking sector remains under pressure due to tighter lending standards and mixed deposit flows, USB’s national footprint and conservative risk profile stand out. 

With shares down over 6% YTD and a P/E of just 11x, the stock may appeal to both income and value investors, especially if Q2 earnings show signs of net interest margin recovery.

Arista Networks | ANET

Price: $101.59

Arista gained 1.4% on the day, supported by broad tech tailwinds.

Although down 13% year-to-date, the cloud networking company continues to post impressive growth, with 25% expected EPS growth and nearly 19% revenue growth in 2025. 

Arista’s high-margin product suite, geared toward hyperscalers and AI data centers, provides a strong foothold in the booming networking infrastructure market.

Valuation remains a sticking point (forward P/E near 37, PEG 2.51), but analysts argue Arista’s dominant positioning justifies the premium.

A Zacks Rank of #2 (Buy) and a consensus price target above $105 suggest further upside if execution continues.

Investors should closely watch the late-July earnings, particularly for updates on AI-related demand.

Wednesday’s session captured the market’s crosscurrents: AI exuberance on one hand and localized political uncertainty on the other.

Nvidia’s record rally reminded investors of the upside embedded in next-gen tech, even as headwinds like China export bans remain unresolved. 

Meanwhile, the NYC mayoral race added fuel to the ongoing debate about economic populism versus financial pragmatism.

In this environment, discipline matters.

Stocks like CVS and USB offer resilience. Others, like FLG and ANET, offer potential upside if their respective risks are properly priced.

And giants like GOOGL remain battlegrounds for growth versus value investors.