Morning Movers: Target Hospitality surges after $550M pact for data center

Stock futures are higher after yesterday’s strong session. Markets are staging a sharp relief rally to kick off April as the dominant narrative is de-escalation. Comments suggesting a potential wind-down of U.S. military activity in Iran have triggered a broad risk-on move across equities, bonds and currencies.

Global markets are following suit with Europe up solidly and Asia posting its biggest gains in years. Oil has dropped sharply from recent highs, easing inflation fears and effectively loosening financial conditions at the margin.

Treasury yields are falling as markets begin to price in a slightly more accommodative Federal Reserve path if energy-driven inflation pressures fade. At the same time, cyclical sectors and travel names are outperforming globally, reflecting a reversal of the war-risk trade that dominated March.

However, the geopolitical situation remains unresolved, with no confirmed ceasefire and lingering risks around the Strait of Hormuz and broader regional escalation. Markets may be pricing in a best-case scenario before it is fully realized, which would create asymmetry if headlines reverse.

In pre-market trading, S&P 500 futures rose 0.60%, Nasdaq futures rose 0.83% and Dow futures rose 0.51%.

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

HIGHER –

• Target Hospitality (TH) up 36% after announcing a $550M multi-year lease and services agreement to construct and provide a facility and hospitality services to a hyperscaler and their development of a data center campus in North Texas
• Disney (DIS) up 1% after Raymond James upgraded the stock to Outperform with a $115 price target

UP AFTER EARNINGS –

• nCino (NCNO) up 21%
• Dave & Buster’s (PLAY) up 7%
• SES AI (SES) up 5%
• Cal-Maine Foods (CALM) up 4%

DOWN AFTER EARNINGS –

• Nike (NKE) down 11%
  
• RH (RH) down 22%
• MSC Industrial (MSM) down 8%
• Conagra Brands (CAG) down 1%