Market Summary - May 20, 2026

The US markets opened higher today, with both the S&P 500 and NASDAQ Composite showing gains of 0.7% and 1.3%, respectively. This upward movement is attributed to the stabilization of bond yields, which has been further supported by a 4% decline in energy prices. Investors are particularly focused on NVIDIA's upcoming earnings report, scheduled for later this evening.

Key Market Insights

• Bond yields have stabilized after a significant rise, with the yield on 10-year US Treasury bonds reaching 4.68%, the highest since January 2025.
• Despite the rise in yields, the stock market has shown resilience, although there are concerns that continued increases could exert more pressure on equities.
• NVIDIA's stock is currently up 2% as investors await the earnings report, with a focus on new product performance, including the Rubin and Vera CPU and DGX Spark.
• Other tech stocks such as Intel, Micron, AMD, and Marvell Technology are also experiencing gains, partly due to a potential strike at Samsung, one of their major competitors.

Company News

Micron Technology (MU.US)

Micron's shares have risen over 3.5% as investors shift away from Asian manufacturers amid strike reports at Samsung. The company has begun shipping innovative 256GB DDR5 server memory modules and is deploying powerful 245TB SSDs, essential for AI infrastructure.

Target (TGT.US)

Target reported Q1 2026 results that exceeded market expectations, with adjusted earnings per share at $1.71 against a consensus of $1.46. Revenue increased by 6.7% year-over-year to $25.4 billion, driven by strong store traffic and digital sales. However, the stock fell over 5% due to concerns about declining operating margins.

Lowe's (LOW.US)

Lowe's reported solid Q1 2026 results, beating forecasts with adjusted EPS of $3.03. The company experienced a 0.6% growth in like-for-like sales, supported by a significant increase in e-commerce and demand in the professional contractor segment. Despite the positive results, shares are slightly down by 0.5%.

Hasbro (HAS.US)

Hasbro had a strong start to 2026, with revenue surpassing $1 billion, driven by the Wizards and Digital Gaming segment. However, shares dropped over 8% due to a weaker-than-expected full-year EBITDA forecast and a significant decline in the entertainment segment's revenue.

Technical Analysis

The US100 index is currently in a steep upward channel following a rebound from mid-March lows. Although the market is experiencing a local correction, it remains within the upper half of the channel. The first support level is identified at the 23.6% Fibonacci level around 28,000 points, indicating a pro-uptrend pattern, albeit with signs of short-term overheating.

Conclusion

As the market awaits NVIDIA's results, the overall sentiment remains positive, bolstered by stabilizing bond yields and strong performances from key companies. However, investors should remain cautious of potential pressures from rising yields and geopolitical uncertainties.