US OPEN: Markets are seeking direction ahead of Nvidia's earnings release

• GameStop shares surged after the video-game retailer announced its first Bitcoin purchase, acquiring 4,710 tokens worth over $513 million at current prices.

• Abercrombie & Fitch shares jumped despite slashing profit guidance due to tariff impacts, after reporting first-quarter results that beat Wall Street expectations.

• Broadcom received bullish analyst coverage as Mizuho raised its price target to $300 from $250, maintaining an Outperform rating and naming it a 2025 top pick.

• Fannie Mae and Freddie Mac shares soared after President Trump clarified his public offering plans for the mortgage giants on Truth Social.

US equity markets showed mixed performance with technology stocks outpacing broader indices during Wednesday's session. The Nasdaq 100 (US100) posted modest gains of 0.09% to reach 21,494.24, while major benchmarks faced headwinds. The Russell 2000 (US2000) led declines, falling 0.22% to 2,091.8, reflecting continued pressure on small-cap stocks. The S&P 500 (US500) edged down 0.04% to 5,937.7, while the Dow Jones (US30) declined 0.13% to 42,409. 

European markets faced broad-based selling pressure as investors grappled with regional economic uncertainties and global trade concerns. Switzerland's SUI20 led regional declines, tumbling 1.10% to 12,206, while Spain's SPA35 fell 0.99% to 14,104. Germany's DAX (DE40) dropped 0.63% to 24,168.6, and the broader EU50 index declined 0.62% to 5,397.6. The Netherlands' AEX (NED25) fell 0.49% to 928.05, with the UK's FTSE 100 (UK100) down 0.48% to 8,766.5. France's CAC 40 (FRA40) declined 0.30% to 7,811.4, while Italy's FTSE MIB (ITA40) managed to post a modest gain of 0.12% to 40,302. Notably, Austria's ATX (AUT20) bucked the regional trend with a 0.37% advance to 4,393, and Poland's WIG20 (W20) rose 0.74% to 2,840.6.

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by the US100, is trying to break above recent highs and remain above the 78.6% Fibonacci retracement level — a key zone that may act as resistance. Bulls will look to retest previous highs, while bears may aim for a pullback toward the 200- and 100-day SMAs, with the 61.8% retracement level as the next potential downside target. The RSI is starting to diverge higher, while MACD tightens after bearish crossover. Source: xStation

Market News

• GameStop shares gained after the video-game retailer announced its first Bitcoin purchase, acquiring 4,710 tokens worth over $513 million at current prices. The move follows GameStop's March announcement that it plans to add cryptocurrency as a treasury reserve asset, mirroring the strategy pioneered by MicroStrategy's Michael Saylor. Bitcoin traded at $108,952 as of 7:05 a.m. New York time, down 0.6% on Wednesday. The purchase marks a significant diversification for the meme-stock favorite as it seeks to modernize its business model beyond traditional video game retail.

• Abercrombie & Fitch shares jumped 27% despite slashing profit guidance due to tariff impacts, after reporting first-quarter results that beat Wall Street expectations. The apparel retailer earned $1.59 per share on revenue of $1.10 billion, surpassing forecasts of $1.39 per share on $1.07 billion revenue. However, the company cut full-year EPS guidance to $9.50-$10.50 from $10.40-$11.40, citing $50 million in expected tariff expenses. Hollister led performance with 22% growth achieving record Q1 sales, while the namesake Abercrombie brand declined 4%. The company raised its revenue outlook to 3%-6% growth but reduced operating margin expectations to 12.5%-13.5% from 14%-15%.

• Broadcom received bullish analyst coverage as Mizuho raised its price target to $300 from $250, maintaining an Outperform rating and naming it a 2025 top pick. Separately, Redburn Atlantic initiated coverage with a Buy rating and $301 price target, calling the company "pre-eminent" in application-specific integrated circuits with a strong customer pipeline. Analysts see a "big" 2026 ahead with AI custom silicon ramping, noting Broadcom's networking products are prevalent across AI data center infrastructure from compute fabric to backend networks.

• Fannie Mae and Freddie Mac shares soared 18% after President Trump clarified his public offering plans for the mortgage giants on Truth Social. Trump stated the government would retain implicit guarantees and presidential oversight even as he pursues privatization, addressing investor concerns about removing the financial backstop that supports the $9 trillion mortgage-backed securities market. Fannie Mae climbed to $12.40 while Freddie Mac rose to $9.00, as the announcement reduced risks that privatization could pressure mortgage rates higher.

• Macy's shares gained 3.9% after posting better-than-expected quarterly results, signaling its turnaround strategy is gaining traction. The department store reported revenue of $4.6 billion, beating estimates, while comparable-store sales declined less than analysts anticipated. CEO Tony Spring's focus on the company's 125 best-performing locations showed progress, with higher-end chains Bloomingdale's and Bluemercury posting positive comparable sales growth. Macy's maintained its annual sales outlook despite tariff pressures and consumer spending moderation, though it scaled back full-year profitability expectations.

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