Markets Overview

US equity futures edged higher as Wall Street braces for the latest geopolitical updates regarding US-Iran relations, with the Nasdaq composite hovering around the 30,000 mark. The broader tech sector is currently logging its best two-month run since 2009, driven by semiconductor strength and artificial intelligence exuberance. Looking ahead, Wall Street veteran Ed Yardeni forecasts a "double 10K scenario," projecting that both the S&P 500 and gold could hit the $10,000 milestone by the end of the decade.

Earnings Reports

Dell Technologies (DELL) exploded for a 40% after-hours gain following a massive earnings beat, driven by an 88% YoY surge in revenue to $43.8 billion. The standout figure was a 757% jump in AI server revenue to $16.1 billion, signaling unmatched enterprise demand. In software, Snowflake (SNOW) posted a 34% increase in product revenue to $1.33 billion, sparking speculation of a rerating for cloud peers.

Retail results were sharply divided. Kohl's (KSS) spiked 20% after reporting its best comparable sales growth in four years, while Gap (GPS) plunged 14% on disappointing Old Navy sales and slashed guidance. American Eagle (AEO) also saw its namesake brand lag despite a boom in its Aerie line. Meanwhile, Best Buy (BBY) gained ground on an earnings beat and positive comparable sales under a transitioning CEO.

Fed & Economic Data

The Fed's preferred inflation gauge showed core prices rising at an annual rate of 3.3% in April, matching expectations but marking the highest level in nearly three years due to a war-driven price shock. Minneapolis Fed President Neel Kashkari maintained a hawkish tone, stating the inflation fight takes priority as the labor market remains in "decent shape." Meanwhile, first-quarter GDP growth was revised lower, highlighting a household crunch where consumer spending is now outpacing income growth.

Hot Sectors

The global semiconductor trade continues to hit unprecedented milestones, with South Korea's early May exports surging 64.8%. Semiconductor exports specifically soared 202.1% to set a new record, underlining the intense worldwide demand for AI infrastructure. The AI theme is also broadening into industrial and legacy tech names, with investors crowding into Caterpillar (CAT) and Nokia (NOK) as unexpected backbones of the data center build-out.

Stock News

The SpaceX IPO is dominating retail chatter, with analysts dissecting an S-1 revealing a $28.5 trillion total addressable market—93% of which is grounded outside of core space operations. Traders are also anticipating ticker confusion between SpaceX and Virgin Galactic (SPCE) on launch day. In other corporate developments, Uber's president warned that enterprise AI spending is getting "harder to justify" after exhausting the company's annual AI budget just four months into 2026.

Market Analysis

As inflation remains sticky and economic growth decelerates, macro analysts are increasingly declaring the "soft landing" narrative dead. A deep dive into equity yield spreads suggests the market could be entering a "lost decade"—an 8-12 year window where bonds may outperform equities. Additionally, an analysis of Vanguard Total World Stock (VT) highlights the hidden costs of passive indexing, suggesting that regional slice allocations with 5/25 rebalancing triggers have historically outperformed a simple buy-and-hold approach over a 56-year backtest.