Morning Movers: Klarna and Yeti rise following quarterly earnings

Futures are higher this morning amid renewed optimism around the U.S.-China talks between President Trump and President Xi Jinping. Markets are extending a rebound despite another wave of inflation anxiety as investors continue favoring AI and semiconductor names over broader macro concerns.

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The tension in markets remains the disconnect between rising inflation and rising stocks. The April PPI report yesterday came in at its hottest level in four years, adding to this week’s hotter-than-expected CPI report. Investors are increasingly discussing the possibility that the Federal Reserve may eventually need to hike rates again instead of cutting them.

Bond markets are reflecting that concern. Long-term Treasury yields remain elevated, with the 30-year yield above 5% and the 10-year hovering near 4.5%. Some strategists note that the S&P 500’s earnings yield is now below the 10-year Treasury yield, changing valuation dynamics for investors.

What continues to overpower those concerns, however, is the AI trade. Semiconductor and infrastructure-related technology stocks remain the market’s leadership group, and investors continue treating artificial intelligence spending as a secular growth wave large enough to offset inflation pressure and slower economic growth.

Crude is still trading above $100 a barrel as markets monitor the Iran conflict and global supply disruptions. The International Energy Agency warned this week that global oil inventories are falling at a record pace, which has intensified stagflation concerns across markets.

In pre-market trading, S&P 500 futures rose 0.30%, Nasdaq futures rose 0.13% and Dow futures rose 0.85%.

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

HIGHER –

• Biogen (BIIB) up 4% after reporting topline results from the Phase 2 CELIA study evaluating diranersen, an investigational antisense oligonucleotide therapy targeting tau, in individuals with early Alzheimer’s disease
• Nvidia (NVDA) up 2% after Reuters reported the U.S. has approved about 10 Chinese companies to purchase Nvidia H200 chips

UP AFTER EARNINGS –

• StubHub (STUB) up 15%
• Cisco (CSCO) up 14%
• Klarna (KLAR) up 12%
• Yeti (YETI) up 8%
• Viking Holdings (VIK) up 5%

DOWN AFTER EARNINGS –

• Doximity (DOCS) down 21%
• Enovix (ENVX) down 10%
• Bullish (BLSH) down 8%