Premarket Movers: Nvidia, Cava Rise; Lowe's, HP Fall

Premarket Highlights: Tech Gains and Retail Declines

U.S. stock futures showed modest gains as investors remained cautious ahead of key earnings reports. Technology and software stocks saw mixed results, while the retail sector faced significant pressure from weak forecasts and economic uncertainty.

Overall Market Situation

The market mood is tentative, with global trade issues and the valuation of the AI industry weighing on sentiment. All eyes are on Nvidia's upcoming quarterly results, which are seen as a crucial indicator for the direction of global stock markets and the AI sector's health.

Impact on Key Sectors

In the tech sector, Nvidia (NVDA) stock rose 0.7% in anticipation of strong results. However, HP (HPQ) fell 5% on a weak 2026 outlook, and Workday (WDAY) dropped 9.5% after a downbeat revenue forecast. In retail, Lowe's (LOW) declined 3.5% after its annual forecast missed estimates. Conversely, Cava Group (CAVA) jumped 10% on a positive sales forecast. Other significant movers included Axon Enterprise (AXON), soaring 17% on strong performance, and Driven Brands (DRVN), which slumped 21% after announcing it would restate financials.

Summary and Outlook

The premarket session highlights a divided market. Tech performance is heavily reliant on leaders like Nvidia, while consumer spending uncertainty impacts retailers. Investors will closely monitor upcoming earnings for further direction.

FAQ

Q: Why is Nvidia's stock rising before its earnings report?
A: Investors are optimistic about Nvidia's results, which are considered a key indicator for the entire AI industry and broader stock market trends.

Q: What caused Lowe's stock to fall?
A: Lowe's stock fell after the company issued an annual sales and profit forecast that was below analyst estimates, citing reduced consumer spending on home renovations.

Source: Investing.com