Show Notes
U.S. stock futures are higher for a second session as markets stabilize and attention shifts back to earnings and AI. Nasdaq futures lead, while investors await the Fed’s preferred inflation gauge later this morning and the market digests a calmer geopolitical backdrop. Risk appetite is improving, but today’s data and guidance will determine whether the rebound holds.
Volatility has retraced quickly, with hedging demand easing and bond yields backing off recent highs. Small- and mid-cap stocks continue to outperform, signaling broader participation beyond mega-cap tech. Strategists argue fundamentals remain supportive, with earnings momentum intact and financial conditions no longer tightening aggressively.
AI remains the central pillar for sentiment. Investors are leaning back into large-cap technology as capital spending and productivity expectations stay elevated. The rotation theme is also in play, with banks and select consumer names drawing interest as investors position for a widening earnings base tied to AI adoption rather than pure infrastructure spend.
Trending movers reflect this crosscurrent. GE Aerospace beat estimates but eased on slower 2026 growth expectations. Abbott Laboratories slid on weaker nutrition sales and soft guidance. Mobileye fell after cautious revenue outlook tied to automaker demand.
Takeaways:
Markets are calmer, with futures pointing higher.
Volatility has faded as yields stabilize.
AI leadership is reasserting itself.
Breadth is improving beyond mega-cap tech.
Guidance, not headlines, is driving moves.
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