US OPEN: US indices seek direction after the House passes the tax bill

• Snowflake shares surged following the cloud data company's first-ever $1 billion revenue quarter

• AT&T announced a $5.75 billion all-cash acquisition of substantially all of Lumen's residential fiber broadband network

• Urban Outfitters shares jumped after reporting first-quarter results that exceeded Wall Street expectations

• House Republicans narrowly passed Trump's comprehensive tax and spending package Thursday morning by a razor-thin margin of 215-214

US equity markets are showing mixed performance with modest declines across major indices. The Russell 2000 (US2000) leads losses, falling 0.59% to 2038.1, while the Dow Jones Industrial Average (US30) and S&P 500 (US500) are both down 0.05%, trading at 41856 and 5855.2 respectively. The Nasdaq 100 (US100) is showing resilience with a slight gain of 0.11% to 21168.50. Market sentiment appears relatively stable as the VIX volatility index has declined 0.33% to 20.83, suggesting some easing of investor anxiety despite remaining above the key 20 level. Notably, both Brazilian (BRAComp) and Mexican (MEXComp) markets are outperforming, with BRAComp up 0.13% to 139082 and MEXComp holding flat at 58734.

European markets are under broader pressure, with all major indices trading in negative territory. Austria's AUT20 is experiencing the steepest decline, falling 1.52% to 4277, followed by Poland's W20 index down 0.83% to 2738.6. Switzerland's SUI20 has dropped 0.64% to 12208, while France's FRA40 declined 0.44% to 7797.2. The Netherlands' NED25 fell 0.31% to 924.10, with the broader EU50 index down 0.27% to 5398.6. The UK's UK100 and Spain's SPA35 both declined 0.24%, trading at 8716.0 and 14203 respectively. Germany's DE40 showed relative resilience with a modest 0.09% decline to 23960.3, while Italy's ITA40 dropped just 0.08% to 40216. The VSTOXX European volatility index remained unchanged at 19.58.

Current volatility observed on Wall Street. Source: xStation

The Nasdaq 100, represented by the US100, is trying to retest 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 lower after reaching overbought levels while MACD tightens which might result in potential bearish divergence. Source: xStation

Market News

• Snowflake shares surged 6.7% following the cloud data company's first-ever $1 billion revenue quarter. The company reported first-quarter adjusted earnings of 24 cents per share on revenue of $1.04 billion, beating analyst expectations of 20 cents per share on $1 billion revenue. Product revenue increased 26% year-over-year to $996.8 million, exceeding Wall Street's $962 million estimate. For the second quarter, Snowflake expects product revenue between $1.035-1.04 billion, above the $1.02 billion consensus, and raised full-year product revenue guidance to $4.33 billion versus analyst estimates of $4.28 billion. The stock has gained 16% year-to-date, outperforming the S&P 500's 0.6% decline, as investors reward the company's AI-driven enterprise spending benefits.

• AT&T announced a $5.75 billion all-cash acquisition of substantially all of Lumen's residential fiber broadband network, marking the latest major consolidation in the fiber optic sector. The deal includes approximately one million fiber customers and reaches over four million fiber locations across 11 states, including major metro areas like Denver, Las Vegas, Minneapolis-St. Paul, and Seattle. AT&T expects to increase fiber customer penetration from the current 25% to around 40% and roughly double its fiber availability to 60 million locations by 2030. The transaction, subject to regulatory approval, is expected to close in the first half of 2026. AT&T stock has gained 20.5% this year while maintaining its $10 billion share repurchase authorization, with plans to buy back at least $3 billion by year-end.

• Urban Outfitters shares jumped 17.5% after reporting first-quarter results that exceeded Wall Street expectations, driven by a sales rebound at its struggling namesake stores. The retailer earned $1.16 per share on revenue of $1.33 billion, beating forecasts of 82 cents per share on $1.29 billion revenue. Same-store sales rose 4.8%, outpacing the expected 3.6% gain. CEO Richard Hayne noted shoppers were "eager" for new spring fashion with no signs of demand slowdown despite tariff concerns. The company expects second-quarter sales growth in the "high single digits" with same-store sales up in the "mid-single digits." Management outlined contingency plans for potential tariff impacts, including strategic pricing on higher-end items while protecting lower-priced merchandise, with current sourcing primarily from India, Vietnam, and Turkey.

• JPMorgan Chase CEO Jamie Dimon expressed cautious support for President Trump's massive tax and spending legislation while warning of its fiscal implications during the bank's Global China Summit in Shanghai on Thursday. Speaking at the closed-door event, Dimon stated, "I think they should do the tax bill. I do think it'll stabilize things a little bit but it'll probably add to the deficit." The legislation, which cleared a crucial House hurdle Wednesday and is estimated to add $3.8 trillion to the national debt over the next decade, prompted Dimon to call for "responsibility" in government spending. He warned that "governments have shown an amazing ability to spend your money not wisely, set rules and regulations to slow down growth." Dimon also told Bloomberg he couldn't rule out stagflation risks, noting "the chance of inflation going up and stagflation is a little bit higher than other people think."

• House Republicans narrowly passed Trump's comprehensive tax and spending package Thursday morning by a razor-thin margin of 215-214, sending the legislation to the Senate after heated overnight debates. The more than 1,000-page bill includes tax cuts, trims to social safety nets, and new federal spending, with House Speaker Mike Johnson calling the changes "generational." The package raises the debt ceiling by $4 trillion and features a more generous state and local tax deduction along with stricter Medicaid work requirements. The nonpartisan Congressional Budget Office estimates the bill will add over $3 trillion in deficit spending over the next decade, with the bottom 10% of Americans seeing household resources reduced by 4% while the top 10% gain 2%. Democratic leadership criticized the measure as "a giveaway to the rich" that "rips healthcare and food assistance away from millions."