US OPEN: US-UK Deal Sparks Market Optimism

• Trump Administration plans to rescind Biden-era AI chip export controls, including the "AI diffusion rule" scheduled to take effect May 15
• Warner Bros. Discovery reported Q1 revenue of $8.98 billion, missing the estimated $9.61 billion, with a loss per share of 18 cents
• Tapestry raised its annual outlook again, now expecting revenue growth of 4% to about $6.95 billion in its current fiscal year through June, up from a previous projection of approximately 3%

US indices are in green today. The S&P 500 (US500) is up 0.66% to 5682.4, while the Dow Jones (US30) has gained 0.60% to 41426. The Nasdaq 100 (US100) is up 0.80% to 20115.45, and the Russell 2000 (US2000) has gained 0.94% to 2014.5. The VIX "fear index" has decreased by 3.08% to 22.63, indicating reduced market anxiety. 

European indices are showing mixed performance today. Several European markets are showing losses including the UK's UK100 (-0.52% to 8531.0) and Switzerland's SUI20 (-0.32% to 12052). However, there are also bright spots in Europe with Austria's AUT20 gaining 1.55% to 4198, Italy's ITA40 advancing 1.15% to 38304, and Poland's W20 up 1.06% to 2772.6. Other European markets in positive territory include the Eurozone's EU50 (0.62% to 5253.6), France's FRA40 (0.61% to 7662.9), Germany's DE40 (0.52% to 23404.6), the Netherlands' NED25 (0.18% to 899.15), and Spain's SPA35 (0.01% to 13464).

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by US100, is trading above the 20,000 level, which aligns with the 38.2% Fibonacci retracement. Bulls will aim to retest the 200- and 100-day SMAs, while bears will look to push the index below 19,195 — a key level that previously sparked an uptrend — with a target near the 61.8% Fibonacci retracement. The RSI remains above the 48.5 threshold, a level that has historically signaled a return to bullish momentum when breached. Meanwhile, the MACD is beginning to widen, which may confirm a bullish stance. Source: xStation 

Market News 

• Warner Bros. Discovery reported Q1 revenue of $8.98 billion, missing the estimated $9.61 billion, with a loss per share of 18 cents. Despite revenue challenges, the company added 5.3 million streaming subscribers for a total of 122.3 million, exceeding expectations. Streaming revenue rose 8% to $2.66 billion, with adjusted EBITDA in the unit surging to $339 million from $86 million a year ago. The company repaid $2.2 billion in debt during the quarter, with shares trading 1.3% lower in pre-market.
• Trump Administration plans to rescind Biden-era AI chip export controls, including the "AI diffusion rule" scheduled to take effect May 15. The revised approach will focus on direct negotiations with nations like the UAE and Saudi Arabia rather than the three-tiered framework. The move won't change measures targeting China but will provide fresh opportunities for other countries to negotiate chip access. Chip stocks rose on the news, with Nvidia climbing 3.1% and the Philadelphia Semiconductor Index gaining 1.7%.
• Kenvue posted Q1 earnings of $322 million, or 17 cents per share, with adjusted EPS of 24 cents, edging out the analyst estimate of 23 cents. Sales fell 3.9% to $3.74 billion, but exceeded expectations of $3.68 billion. The company named Kellanova CFO Amit Banati as its new financial chief effective May 12, while updating its 2025 outlook to reflect current foreign exchange rates and tariff impacts, now forecasting sales growth of 1-3% while maintaining organic revenue growth of 2-4%.
• Viatris reported Q1 adjusted earnings of $0.50 per share, down from $0.67 a year earlier but above the expected $0.49. Revenue fell to $3.25 billion from $3.66 billion but slightly exceeded analyst forecasts. The company raised its 2025 adjusted EPS guidance to between $2.16 and $2.30, up from the previous range of $2.12 to $2.26, while maintaining its revenue forecast of $13.50 billion to $14 billion. Shares were up over 1% in premarket trading.
• Tapestry raised its annual outlook again, now expecting revenue growth of 4% to about $6.95 billion in its current fiscal year through June, up from a previous projection of approximately 3%. The company reported a 13% increase in Coach brand revenue, offsetting declines at Kate Spade. Tapestry noted that new tariffs are "expected to have an immaterial impact" this fiscal year due to limited China exposure, with shares surging 9% in premarket trading.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP