S&P futures are down 0.3% Thursday morning after Wednesday’s rally, when the S&P 500 snapped a three-day losing streak on renewed Middle East optimism. Momentum rebounded sharply, with semis up roughly 4.5%, while cyclicals also outperformed, led by banks, homebuilders, machinery, and travel names helped by the oil pullback. Treasuries are slightly weaker, with yields up 1–2 bp after Wednesday’s 7–10 bp decline, the dollar is up 0.1%, gold and silver are lower, Bitcoin futures are slightly higher, and WTI crude is down 0.2% after falling more than 5.5%.
The AI compute-demand narrative remains intact after NVDA delivered another beat-and-raise, though the bar was high and momentum had already bounced sharply Wednesday. Risk sentiment was also helped by U.S.-Iran resolution headlines and increased Strait of Hormuz transits, though details remain limited and skepticism persists around whether either side will compromise on core issues. Wednesday’s rally may also have been helped by recently elevated caution around global bond yields, fading fiscal tailwinds, looming IPO supply, and weaker mechanical support. Goldman Sachs noted hedge-fund short exposure has moved above pre-ceasefire levels to fresh 10-year highs.
Economic Calendar
Today’s calendar includes jobless claims, Philly Fed manufacturing, housing starts, and flash PMIs. Flash manufacturing PMI is expected to slip to 53.7 from 54.5, while services PMI is expected to hold at 51.0. Price indexes within the PMI reports will be closely watched after their recent rise. Fed’s Barkin also speaks today. Friday brings final University of Michigan sentiment and inflation expectations, along with Kevin Warsh being sworn in as Fed Chair.
Company News
- NVDA: Posted a strong beat-and-raise on continued AI demand. Takeaways were positive on the $200B CPU TAM, new segmentation, and frontier-model share gains, including Anthropic, though expectations were elevated.
- Anthropic: Revenue is projected to double to $10.9B in Q2, with the company expected to achieve its first operating profit.
- SpaceX: IPO filing showed a $4.9B net loss on $18.7B of revenue in 2025.
- DE: Beat expectations, with Construction & Forestry the standout, but left FY guidance unchanged.
- INTU: Under pressure despite a beat-and-raise, with investors focused on weaker TurboTax performance.
- KR: CEO told Bloomberg the company is considering large price cuts to regain market share.
- AVB / EQR: Confirmed an all-stock merger.
- APLD: Higher on a long-term lease agreement with a hyperscaler, representing roughly $7.5B in base-term contracted revenue.
- URBN: EPS beat on stronger sales and margins, helped by Free People and Urban Outfitters comps above 9%, while Anthropologie missed.
- ELF: Beat, but FY27 guidance was softer; takeaways focused on the decision to selectively lower volume.
- CHH: Announced its CEO will step down while reaffirming FY guidance.
U.S. equities rallied Wednesday, ending just off best levels, with the Dow +1.31%, S&P 500 +1.08%, Nasdaq +1.54%, and Russell 2000 +2.56%. The session was supported by rate stabilization, renewed momentum leadership, and hopes for progress toward a U.S.-Iran resolution. Treasuries rallied across the curve, with yields down 7–10 bp, while the dollar fell 0.2%, gold rose 0.8%, silver gained 1.4%, Bitcoin futures rose 1.0%, and WTI crude dropped 5.4% to $98.53 on chatter around potential U.S.-Iran negotiations. The April FOMC minutes leaned hawkish, showing broad support for patience and a majority seeing potential need for further firming if inflation persists, though many officials still viewed cuts as likely if the conflict ends and inflation pressure fades. Markets now turn to Thursday’s claims, Philly Fed, housing starts, and flash PMIs, followed by Friday’s final University of Michigan sentiment and inflation expectations.
Sector performance was broadly risk-on, with Consumer Discretionary leading, up 2.50%, helped by retail earnings, homebuilders, restaurants, and renewed cyclical appetite. Technology gained 1.87% as momentum, AI-linked names, semis, and big tech rebounded. Materials rose 1.39%, Industrials gained 1.20%, Real Estate added 1.15%, and Financials rose 1.07%. Utilities gained 0.40% and Communication Services rose 0.16%. Healthcare slipped 0.07%, Consumer Staples fell 0.97%, and Energy was the clear laggard, down 2.59%, as crude sold off sharply. The tape favored momentum, small caps, cyclicals, semis, banks, investment banks, travel, homebuilders, casual diners, trucking, machinery, precious metals, and containerboard, while energy and staples lagged.
Information Technology
- NVDA: Reports after the close, with investors focused on whether results and guidance can reinforce the AI compute-demand narrative after the recent momentum unwind.
- ADI -3.9%: Fiscal Q2 revenue and EPS beat, helped by Consumer, Communications, and Auto strength, though Industrial was softer. The company also confirmed its acquisition of Empower Semiconductor, with analysts positive on the AI infrastructure angle but noting elevated expectations.
- KEYS: Lower despite a beat-and-raise, though Street takeaways were positive on order strength, backlog, and AI infrastructure leverage.
- INTU -4.0%: Reuters reported the company will cut 17% of its global workforce to streamline operations and focus on strategic priorities, including AI.
- RBRK +4.0%: Upgraded to outperform at Oppenheimer, which cited backup and cyber-resilience demand.
- BABA: Unveiled a new AI chip said to be three times more powerful than its predecessor.
- OpenAI: Reportedly preparing to file for an IPO in the coming days or weeks.
Communication Services
- RBLX +3.0%: Announced a $3B share repurchase program.
- PSKY +2.3%: Reportedly aiming to close its merger with Warner Bros. Discovery as soon as July.
- AMC +11.8%: CEO Adam Aron disclosed a purchase of 250K shares.
Consumer Discretionary
- TJX +5.7%: Q1 EPS beat on better sales and margins, with HomeGoods comps up 9%. The company raised FY comp and EPS guidance and said Q2 is off to a good start.
- LOW +1.2%: Q1 comp growth of 0.6% was slightly below consensus, but EPS beat on better operating margin. FY guidance was reaffirmed, and management highlighted Pro strength and a tax-refund tailwind in Q2.
- TGT -3.9%: Q1 earnings, revenue, and operating margin beat, and FY27 guidance midpoints were raised, but shares fell on concerns around tougher Q2 comparisons, waning tax-refund support, cost headwinds, and a high bar.
- TOL +9.8%: Fiscal Q2 revenue and EPS beat on better ASPs and gross margins. Q3 guidance was softer than expected, but full-year guidance was raised across key homebuilding metrics.
- CAVA +3.1%: Q1 EPS, EBITDA, and revenue beat, with nearly 10% comp growth. FY EBITDA, new restaurant opening, and comp guidance were raised.
- VFC -3.2%: Fiscal Q4 earnings and revenue were slightly better, with margin strength and improvement at Vans, but the Active segment remained under pressure.
- WEN -4.6%: Named former Potbelly CEO Robert Wright as president and CEO, effective May 21.
- ETSY +5.7%: Upgraded to buy at Arete Research, which cited improving GMS growth and better buyer retention/frequency.
- EBAY +4.1%: GameStop disclosed it increased its economic exposure to a 6.55% stake through put/call structures.
Consumer Staples
- HAS -8.8%: Q1 revenue and EPS beat, driven by Wizards and Consumer Products strength, but margins disappointed and FY guidance was only reaffirmed.
Energy
- ZIM -1.5%: Q1 adjusted EBITDA beat but revenue missed, with carried volume down 8% y/y. Management said the Iran war had minimal Q1 impact but expects more meaningful Q2 headwinds.
Financials
- Banks / investment banks: Outperformed as rates stabilized and cyclicals rebounded.
Healthcare
- IMVT +35.0%: Focus was on positive preliminary IMVT-1402 data in difficult-to-treat rheumatoid arthritis, despite FQ4 earnings below expectations.
Industrials
- CHRW +4.4%: Upgraded to buy at Jefferies, which cited technology transformation, a favorable regulatory backdrop, balance sheet strength, and valuation.
- Trucking / machinery: Outperformed as cyclicals recovered.
Materials
- CE: Announced an engineered materials price increase.
- PKG +4.9%: Upgraded to buy at UBS, which expects the $50/ton June price increase to hold amid improving demand and tight supply.
Eco Data Releases | Thursday May 21st, 2026
S&P 500 Constituent Earnings Announcements | Thursday May 21st, 2026
Data sourced from FactSet Research Systems Inc.
