Premarket trading showed quantum-computing stocks leading the gains after a Wall Street Journal report said the government plans to award $2 billion in grants to nine firms, with government equity stakes included. Rigetti Computing rose 15%, D-Wave Quantum jumped 17%, and Quantum Computing rose nearly 14% in early action, while IonQ gained 8%, IBM advanced 6.5% and GlobalFoundries climbed 13%.
In other notable moves, Walmart slipped about 2% after issuing a full-year and current-quarter outlook that fell short of expectations. The retailer guided adjusted earnings per share to be between $2.75 and $2.85, below the $2.91 consensus from LSEG. Its first-quarter adjusted EPS was in line with expectations, while revenue topped estimates.
Rocket Lab slid about 6% after SpaceX filed a prospectus with the Securities and Exchange Commission to list on the Nasdaq. CNBC reported last week that the company plans to kick off a roadshow to market the deal on June 8.
Nvidia reported revenue of $81.62 billion for the first quarter, up 85% year over year and above the LSEG consensus of $78.86 billion, though shares were little changed in premarket trading.
Intuit fell 14% after announcing a 17% reduction in its workforce and reporting third-quarter revenue of $8.56 billion, below the LSEG consensus of $8.61 billion.
E.l.f. Beauty rose 7% after beating Wall Street expectations on both the top and bottom lines for the fourth fiscal quarter. The company said it would unwind some of its tariff-related price increases, citing relief for consumers facing higher energy costs.
Star Bulk Carriers gained 3% after reporting 56 cents in earnings per share, excluding items, on $281.2 million in revenue for the first quarter. Analysts surveyed by FactSet had penciled in 47 cents per share and $225.9 million in revenue.
Kroger fell 4% following a Bloomberg report that it plans to substantially cut prices across its stores to compete with Walmart and Costco.
Applied Digital jumped 10% after announcing a long-term lease with a U.S.-based hyperscaler, a development the company described as a strong strategic fit for its data-center portfolio.
Nio’s U.S.-listed shares rose nearly 5% as its first-quarter earnings and revenue topped expectations, and its second-quarter guidance was above estimates. The company projected deliveries of between 110,000 and 115,000 in the second quarter, a nearly 60% increase from a year earlier.
Deere & Company traded down after reporting stronger-than-expected second-quarter results, with earnings of $6.55 per share and net sales of $11.78 billion, beating the consensus of $5.70 per share and $11.54 billion. Deere reaffirmed its full-year net income guidance, but the stock fell roughly 4% on the session.
Key takeaways
- Price move: Quantum-related names led gains (Rigetti +15%, D-Wave +17%, Quantum Computing nearly +14%), with broad upside across several tech and industrial names.
- Catalyst: The Wall Street Journal report detailing a proposed $2 billion in government grants to nine quantum firms, including potential government equity stakes, served as the primary spark.
- Market reaction: The moves underscored a risk-on tilt in premarket trading, with quantum plays and select tech names outperforming while retailers and industrials zigzagged on company-specific headlines.
- Key implication: The media-backed government support for quantum technology could influence sentiment for capital-intense AI and hardware bets, though investor focus remains on whether policy shifts translate into durable earnings power.
- Broader context: In a mixed lineup of results, large-cap chipmakers and consumer names showed divergent paths, highlighting the ongoing sensitivity of markets to earnings signals and guidance.
What drove the move
The focal point was a report from the Wall Street Journal detailing a government plan to award $2 billion in grants to nine quantum-technology firms, with the potential addition of government equity stakes. While the specifics of the program and its near-term implementation remain under discussion, the note fed optimism around the quantum sector’s funding prospects and strategic importance. In the same morning window, Nvidia disclosed a first-quarter revenue print that topped expectations, reinforcing a broader appetite for AI-related hardware and semiconductors. The company reported revenue of $81.62 billion, up 85% year over year, surpassing the $78.86 billion consensus from LSEG, a result that contributed to a generally constructive risk environment for tech equities.
Company-specific headlines also framed the session. Intuit’s decision to cut roughly 17% of its workforce and a softer-than-expected quarter on the top line weighed on the stock, illustrating how cost discipline can clash with investor expectations in software-enabled businesses. Conversely, E.l.f. Beauty’s beat-and-raise tone and its move to ease tariff-driven price pressures on consumers provided a positive read across the consumer-staples-adjacent space. The quarter also featured mixed signals from industrials and energy-related names, with Deere delivering a strong earnings beat but seeing a share price decline on the back of cautious guidance or margin concerns in the current environment.
Market reaction
Premarket trading showed a split personality across sectors. Quantum stocks surged as investors priced in potential government support for next-generation computing technologies. Other movers reflected idiosyncratic headlines: Rocket Lab declined after SpaceX’s Nasdaq listing filing, while Star Bulk Carriers edged higher on solid quarterly results. Kroger’s stock faced pressure on reports of aggressive price-competition strategies, and Applied Digital benefited from a major lease announcement with a hyperscaler. In Asia-exposed names, Nio advanced on better-than-expected Q1 results and optimistic Q2 guidance, while Deere’s shares slipped despite a strong earnings read, suggesting investors are weighing near-term earnings against long-run demand and margins in an uneven macro backdrop.
Bigger picture
The session underscores how policy signals—especially on funding for advanced technologies like quantum computing—can shape sentiment in high-beta pockets of the market. It also highlights the importance of earnings quality and guidance in a period where investors scrutinize posture toward costs, margins, and long-term growth trajectories. The mixed bag of results points to a market that remains highly sensitive to both sector-specific catalysts and macro cues, including inflation dynamics, rate expectations, and the outlook for AI-driven demand across hardware, software, and services.
Looking ahead, investors will be watching Rocket Lab’s positioning ahead of its Nasdaq listing roadshow, expected to begin in June. In the consumer space, Walmart’s outlook and any subsequent commentary on pricing and consumer demand will be of interest, as will the ongoing trajectory of Nvidia’s AI-led growth narrative. In industrials and agriculture, Deere’s continued performance and guidance will be a gauge of demand for capital-intensive equipment in a slower-growth environment.
As markets digest this mix of policy headlines and company-specific outcomes, the coming sessions could set the tone for how much of the AI and quantum investment cycle is priced in and how investors balance growth prospects against near-term earnings risk.
