Morning Movers: Target slips following first quarter report

Stock futures are higher this morning as semiconductor stocks rebound ahead of results that many traders see as the next major test for the AI-driven market rally. Markets are attempting to stabilize after several sessions dominated by rising yields and inflation fears, with investors now fully focused on tonight’s highly anticipated Nvidia earnings report. Options markets are pricing in roughly a 6.5% post-earnings move, which translates to about a $350B swing in market value. Investors are looking for confirmation that hyperscaler and enterprise AI spending remains strong enough to justify both elevated tech valuations and the massive wave of AI infrastructure investment occurring across the economy.

Bond yields remain elevated even as stocks continue hovering near highs. The 10-year Treasury yield is still near 4.65%, while the 30-year yield remains above 5.1%, levels not seen since before the financial crisis. Markets increasingly believe the Federal Reserve may not only delay rate cuts, but could potentially hike again later this year if inflation remains stubborn. Investors are also watching today’s 20-year Treasury auction and the release of Fed meeting minutes for further clues on policymakers’ thinking.

Although crude prices eased modestly overnight after comments from President Trump suggesting possible progress toward a resolution with Iran, Brent crude still remains above $100 per barrel. 

In pre-market trading, S&P 500 futures rose 0.43%, Nasdaq futures rose 0.74% and Dow futures rose 0.42%.

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

UP AFTER EARNINGS –

• Red Robin (RRGB) up 10%
• Cava Group (CAVA) up 9%
• TJX (TJX) up 4%
• Toll Brothers (TOL) up 3%
• VF Corp. (VFC) up 1%

DOWN AFTER EARNINGS –

• Target (TGT) down 4%
• James Hardie (JHX) down 2%
• Lowe’s (LOW) down 1%
• Analog Devices (ADI) down 1%
• Hasbro (HAS) down 1%