Morning Movers: Cannabis stocks higher after reports of reclassification

Stock futures are mixed this morning, reflecting a rotation out of technology names and into more cyclical and defensive sectors. Investors are still digesting news from yesterday’s session, where major indexes reached record highs even as technology stocks pulled back on renewed concerns about AI valuations and earnings outlooks.

Broader market sentiment has been supported by optimism about the Federal Reserve’s rate-cut policy, especially after its recent dovish move and indications that easing could continue into 2026. That has helped drive inflows into equity funds after weeks of net outflows, suggesting investors are increasingly willing to position for further gains even amid pockets of sectoral weakness.

Stocks tied closely to AI, including chipmakers and software firms, have shown vulnerability as concerns over profit margins and the pace of future growth have resurfaced following mixed earnings from major industry players. This has weighed on the Nasdaq while more rate-sensitive and value sectors have attracted buying interest.

In pre-market trading, S&P 500 futures fell 0.09%, Nasdaq futures fell 0.50% and Dow futures rose 0.18%.

Check out this morning’s top movers from around Wall Street, compiled by The Fly. 

HIGHER –

• Citi (C) up 1% after JPMorgan upgraded the stock to Overweight with a price target of $124, up from $107

UP AFTER EARNINGS –

• Quanex (NX) up 27%
• Lululemon (LULU) up 10%
• Johnson Outdoors (JOUT) up 4%
• RH (RH) up 3%

UP AFTER REPORT OF POTENTIAL MARIJUANA RECLASSIFICATION –

• Tilray (TLRY) up 35%
• Canopy Growth (CGC) up 26%
• Innovative Industrial Properties (IIPR) up 5%

DOWN AFTER EARNINGS –

• Broadcom (AVGO) down 5%
  
• Netscope (NTSK) down 9%
• Comtech (CMTL) down 8%
• Kestra Medical (KMTS) down 4%
• Costco (COST) down 1%