S&P futures are up 0.2% Wednesday morning after U.S. equities finished mostly lower Tuesday, with memory, semis, and other AI-linked themes leading the decline. Travel/leisure, builders, apparel, and trucking also lagged, though 6 of 11 sectors still finished higher, led by Energy, big banks, biopharma, and staples retailers. Global tone is firmer, with Asia mostly higher, South Korea up more than 2.5%, and Europe up roughly 0.5%. Treasuries are unchanged to slightly firmer after Tuesday’s yield backup, the dollar is up 0.25%, gold is up 0.2%, silver is up 1.6%, Bitcoin futures are up 0.6%, and WTI crude is off 0.5% after jumping more than 4% and finishing above $100/barrel.
The broader narrative is little changed. Tuesday’s momentum pullback is being viewed more as consolidation after stretched positioning than a clear shift in sentiment. AI sentiment is getting some support from news that NVDA CEO Jensen Huang was added to Trump’s China delegation. The upcoming Trump-Xi summit remains a key focus, with expected discussion around Iran, rare earths, U.S. tech export restrictions, arms sales to China, and tariffs. Iran ceasefire headlines remain fragile, with continued concern around Iranian military capacity, oil reserve depletion, supply-chain disruption, inflation spillovers, and consumer affordability pressure.
Economic Calendar
April PPI is the key release today. Headline PPI is expected up 0.5% m/m, matching March, while core PPI is expected up 0.3% after a prior 0.1% gain. Treasury will sell $25B of 30-year bonds. Fed officials Collins and Kashkari are scheduled to speak. Thursday brings retail sales, import/export prices, and initial claims, while Friday features the May Empire manufacturing index and April industrial production.
Company News
- NVDA: CEO Jensen Huang was reportedly added to Trump’s China-trip delegation after media coverage highlighted his initial absence.
- MSFT: Recent share weakness has raised speculation about possible activist involvement, according to The Information.
- WMT: Reportedly planning to cut or relocate roughly 1,000 corporate workers as it combines more global technology and AI teams.
- Anthropic: Reportedly in talks to raise $30B at a $900B valuation.
- Anthropic / Stainless: Anthropic is also reportedly in talks to acquire developer-tools startup Stainless for at least $300M.
- NKE: Financial press highlighted the company’s ongoing struggles in China.
- FDX: CEO downplayed the competitive threat from Amazon’s new logistics offering.
- CSCO: Reports after the close, with focus on memory costs and AI-related demand.
U.S. equities finished mostly lower Tuesday, though the S&P improved from midday lows, with the Dow up 0.11%, S&P 500 down 0.16%, Nasdaq down 0.71%, and Russell 2000 down 0.97%. The session had a risk-off tone as the AI complex gave back recent gains, with semis, semicap equipment, memory, and software all under pressure. Macro pressure came from another move higher in oil and yields: WTI crude rose 4.4% to $102.38, the 2-year yield rose 4 bp to 3.99%, the 10-year rose 5 bp to 4.46%, and the 30-year moved back above 5% to 5.03%. The dollar index rose 0.3%, gold slipped, and Bitcoin futures fell 1.5%. April CPI added to the pressure, with headline CPI up 0.6% m/m, in line with consensus but still elevated, while core CPI rose 0.4% m/m, hotter than the 0.3% forecast. Shelter was a key contributor, while energy remained a major headline driver. NFIB small business optimism was little changed, with the release continuing to flag inflation pressure and fragile sentiment. The $42B 10-year Treasury auction tailed 0.4 bp, the fourth straight tail, while Goolsbee expressed concern about stubborn services inflation.
Sector Highlights
Sector performance showed a clear rotation away from AI, cyclicals, and small caps and toward defensives and rate-sensitive stability. Healthcare led, up 1.93%, followed by Consumer Staples +1.56%, Financials +0.72%, Energy +0.71%, Utilities +0.10%, Real Estate +0.10%, and Communication Services +0.09%. Materials slipped 0.15%, while Industrials fell 0.40%, Technology dropped 0.99%, and Consumer Discretionary was the weakest sector, down 1.06%. Relative outperformers included money-center banks, insurers, payments, managed care, pharma/biotech, MedTech, rails, QSRs, food/beverage, staples retailers, ag chemicals, telecom, and energy. Laggards included semis, memory, software, apparel, homebuilders, auto suppliers, airlines, trucking, cruise lines, E&Cs, building products, regional banks, steel, paper/packaging, media, China tech, most-shorted names, retail favorites, and small caps.
Information Technology
- Q +9.9%: Qnity Electronics beat Q1 earnings and revenue expectations, citing strong demand for advanced logic and HBM chips, strength in CMP consumables, inventory restocking, and raised FY guidance.
- ZBRA +11.4%: Beat Q1 earnings and margins, with revenue slightly ahead. Management highlighted organic growth across all segments, manufacturing strength, e-commerce, automation, and Physical AI trends, while raising FY guidance.
- GTLB -10.0%: Reaffirmed Q1 and FY27 guidance and announced a strategic restructuring to position for the agentic AI era, but investors were disappointed by limited details on workforce reductions and the decision to reinvest most savings.
- GTM -32.8%: ZoomInfo beat Q1 expectations, but growth decelerated for a third straight quarter and FY guidance was cut. Management cited AI uncertainty pressuring software customers, AI disruption to the seat-based model, and announced a 20% workforce reduction.
- Semis / memory: Sold off sharply after a strong run, with semicap equipment and memory among the biggest sources of Nasdaq weakness.
Communication Services
- SE +13.1%: Sea Limited beat Q1 revenue and adjusted EBITDA expectations, driven by record Shopee GMV, orders, and revenue growth. Management reiterated confidence in roughly 25% Shopee GMV growth in 2026, while Garena posted its strongest quarter since 2021.
- ASTS -11.6%: Q1 results were weaker than expected. The company reaffirmed FY guidance but lowered its 2026 satellite-orbit target to roughly 45 Bluebird satellites from the prior 45–60 range.
- Media / China tech: Underperformed as risk appetite faded and growth-oriented internet exposure lagged.
Consumer Discretionary
- WEN +16.9%: Rallied after reports that Trian Partners is seeking outside investor support for a potential bid to take Wendy’s private.
- ONON: Beat and raised FY margin guidance, though the stock still declined as investors focused on valuation and expectations.
- UAA -17.0%: Under Armour’s FQ4 earnings and revenue were largely in line, but margins were light due to tariffs, higher costs, and pricing headwinds. FY27 guidance came in below Street expectations, and the company extended its restructuring plan.
- HIMS -14.1%: Revenue and adjusted EBITDA missed, and FY26 adjusted EBITDA guidance was lowered despite solid GLP-1 demand and higher revenue guidance. Gross margin fell to 65% from 73% due to GLP-1 transition-related charges.
- TOST -3.8%: Downgraded to neutral from buy at Rothschild & Co Redburn on risk from DoorDash’s U.S. rollout.
- CART -3.3%: Fell after Amazon announced the rollout of Amazon Now ultra-fast delivery to dozens of cities.
- EBAY: Rejected GameStop’s proposals.
- BZH: Rejected Dream Finders’ $25.75/share takeover bid.
- GPRO: Rose after announcing it is evaluating strategic alternatives following inbound offers.
- Retail / apparel / homebuilders / autos / travel: Broadly lagged as higher gasoline prices and negative real-wage concerns weighed on consumer sentiment.
Consumer Staples
- ARMK +8.6%: Aramark’s Q2 revenue beat, with organic growth above consensus in both U.S. and International segments. Management guided FY organic revenue growth to the high end of its prior range.
- HAS: Said it expects Q1 revenue and operating income to come in at the high end of its prior guidance range.
- Food / beverage and staples retailers: Outperformed as investors rotated toward defensive consumer exposure.
Energy
- VG +14.2%: Venture Global beat Q1 adjusted EBITDA expectations, driven by strong performance at Calcasieu Pass and Plaquemines. The company sharply raised 2026 EBITDA guidance and tightened cargo guidance amid stronger LNG contracting activity.
- PLUG +1.1%: Results were ahead, and takeaways were positive on operational progress, margin improvement, asset monetization, and management’s reiteration of profitability goals, including positive EBITDAS exiting 2026.
- Energy sector +0.71%: Outperformed as WTI crude jumped more than 4% back above $100/barrel amid persistent U.S.-Iran tensions and supply-disruption risk.
Financials
- VSTS +29.0%: Vestis beat FQ2 revenue, free cash flow, gross margin, adjusted EBITDA, and EPS expectations. FY26 adjusted EBITDA guidance was above consensus, and free-cash-flow guidance was significantly increased.
- Money-center banks / insurers / payments: Outperformed as investors rotated toward more defensive and cash-flow-oriented financial exposure.
- Regional banks: Lagged amid higher yields, tighter financial conditions, and risk-off sentiment.
Healthcare
- PACS +28.6%: Healthcare services name rallied on stronger skilled nursing occupancy, better adjusted EBITDA and revenue, raised FY EBITDA guidance, and a $250M buyback.
- Managed care / pharma / biotech / MedTech: Led the market’s defensive rotation and helped Healthcare become the top-performing sector.
Industrials
- RAL +19.4%: Ralliant beat Q1 revenue, EBITDA margin, and EPS expectations, raised FY26 guidance, and highlighted a return to y/y growth in Test & Measurement. Defense & Space backlog moved above $1B on missile and munitions replenishment.
- PSN +8.1%: Parsons was awarded a position on a $136M Air Force contract.
- ACM: Takeaways were mixed, with some Iran-war headwinds and weak free cash flow flagged.
- HUBG -12.5%: Delayed Q1 results after identifying certain transactions that were prematurely or incorrectly recognized.
- Trucking / E&Cs / building products: Underperformed as cyclicals sold off.
Materials
- Ag chemicals: Outperformed within the market’s defensive and commodity-sensitive rotation.
- Steel / paper / packaging: Underperformed as Materials slipped and cyclicals weakened.
Real Estate
- Real Estate +0.10%: Finished slightly higher despite the move higher in Treasury yields, reflecting some defensive rotation and relative stability versus cyclicals.
Utilities
- Utilities +0.10%: Posted a small gain as defensive yield-oriented groups held up better than growth and cyclicals, despite another move higher in yields.
Eco Data Releases | Wednesday May 13th, 2026
S&P 500 Constituent Earnings Announcements | Wednesday May 13th, 2026
Data sourced from FactSet Research Systems Inc.
