Nia Warfield6/11/25

Market rebound stalls as investors weigh trade talks and cooler inflation numbers

US stocks closed lower Wednesday, ending the S&P 500’s three-day win streak as Wall Street sifted through a number of headlines. On the trade front, US-China negotiations resulted in a preliminary agreement to revive last month’s Geneva tariff truce and ease rare-earth export limits.

Meanwhile, May inflation came in cooler than expected, with minimal impact so far from recent tariffs. The S&P 500 slipped 0.27%, the Nasdaq shed 0.50%, and the Russell 2000 dropped 0.38%.

Energy led the market for the second day, with utilities the only other sector in the green, while materials and consumer discretionary lagged. Starbucks led the day’s gains, up 4% after the coffee chain debuted new AI-powered tech and got a price target hike. American Airlines, Delta, and JetBlue were among the worst performers after the latest inflation numbers showed airfare was declining. Elsewhere...

Tesla rose as much as 2% before closing flat after CEO Elon Musk walked back his recent comments about President Trump and floated a new date for the company’s robotaxi rollout.

Dave & Buster’s climbed 17% after the adult arcade chain missed Q1 profit estimates but said traffic is starting to bounce back.

Lockheed Martin fell over 4% after reports that the Pentagon halved its order for the company’s popular F-35 fighter jets.

Victoria’s Secret fell 5% after the lingerie retailer topped Q1 revenue forecasts but lowered its full-year profit outlook, citing a $50 million tariff hit.

Snap ticked up about 1% after announcing its latest iteration of smart glasses, with new AI-powered Specs set to debut next year.

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Max Knoblauch10h

American Eagle posts stronger-than-expected Q4 earnings and revenue

If American Eagle has seen farther, it is by standing on the shoulders of Sydney Sweeney.

The jeans seller posted adjusted earnings of $0.84 per share, ahead of the $0.71 expected by analysts polled by FactSet. It booked $1.76 billion in fourth-quarter revenue, versus the $1.74 billion consensus.

Shares initially climbed more than 5% after-hours before paring gains to about 2%.

“Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter,” said CEO Jay Schottenstein.

American Eagle said it’s expecting same-store sales to grow by high single digits in the first quarter.

Marketing controversy has proved to be a powerful mover of denim for AE. In its third-quarter earnings call in December, AE said its partnership with Sydney Sweeney — together with a Travis Kelce partnership — had garnered more than 44 billion impressions. The retailer hit meme stock status last July when it initially launched its “Sydney Sweeney has great jeans” campaign.

As of Wednesday’s close, American Eagle shares had climbed 120% since the Sweeney ad first landed.

Broadcom posts modest Q1 sales and earnings beats

The custom chip specialist just reported Q1 results.

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Rigetti Computing posts Q4 sales that fall short of expectations

The quantum computing firm just posted Q4 results.

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Tasha Matsumoto

Stocks rebound as investors’ risk appetite resumes

Investors shifted their focus from the war in Iran, resuming a risk-on mood amid surprise economic data.

Josh Giddey #3 of the Chicago Bulls grabs a rebound during the second half against the Detroit Pistons on October 22, 2025 at the United Center in Chicago, Illinois.

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Investors are itching to buy the dip in memory stocks

The intense drubbing in South Korean stocks, with the benchmark Korean index (KOSPI) falling nearly 20% in its first two trading days of the week following a Monday holiday, represented a serious threat to the hottest AI trade: memory stocks.

South Korea’s market is dominated by two high-bandwidth memory giants: SK Hynix and Samsung.

After Tuesday’s tumble, US investors seemingly said enough is enough: it’s a buy-the-dip opportunity.

US memory stocks like Micron, Sandisk, Western Digital, and Seagate Technology Holdings are posting massive gains on the day. The advance comes amid positive commentary at a Morgan Stanley conference on demand for memory chips.

Even more interestingly, the iShares MSCI South Korea ETF is up big today despite the KOSPI falling 12% overnight, its largest drop on record. The ETF’s outperformance of the South Korean equity gauge is the largest since 2008, as the global financial crisis raged.

The daily performance of these two can differ materially since they trade at different times and don’t track precisely the same things. US investors are making the bet that a potential break in this momentum trade and the potential for an unwind of retail leverage in South Korean markets be damned, big drops in memory stocks are meant to be bought.

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