Earnings Season Continues
Though all eyes were on Nvidia this week, Wall Street unpacked plenty of other reports as well. Lowe’s (LOW) and Target (TGT) both reported upbeat results, though the latter suffered a post-earnings drop, while Walmart (WMT) slid after disappointing current-quarter guidance overshadowed an otherwise solid report.
Tech Stocks Stay in Focus
Outside of earnings season, speculative momentum remained alive in several high-volatility corners of the market. ServiceNow (NOW) rallied after a fresh bullish analyst call and stakeholder investment boosted sentiment around the cloud stock, while Alphabet (GOOGL) drew attention after announcing a new AI partnership with Blackstone. Quantum computing stocks entered the spotlight later in the week after government grants sparked renewed buying interest in names such as Infleqtion Quantum (INFQ), D-Wave Quantum (QBTS), and Rigetti Computing (RGTI).
Elsewhere, Analog Devices (ADI) pulled back from record highs ahead of earnings amid pressure in semiconductor stocks, and SanDisk (SNDK) cooled off following its historic rally. Fintech name Futu Holdings (FUTU) plummeted due to multiple catalysts on Friday. It's also worth noting that AI stocks BigBear.ai (BBAI), C3.ai (AI), SoundHound AI (SOUN), and Tempus AI (TEM), while DigitalOcean (DOCN) all sport extremely elevated short interest.
Looking Ahead
Next week will be shortened due to Memorial Day on Monday, May 25. There will still be plenty for investors to parse through the rest of the week, however, including retail earnings and PCE inflation data. In the meantime, take a look at why a pause in S&P 500 momentum shouldn't scare bulls, plus, a closer look at the rapid shift in stock sentiment.