S&P 500: D-Wave Quantum Soars, Home Depot Steady While Investors Await Fed Insight

Pre-Market Dip Threatens S&P 500’s Six-Day Rally

U.S. stock futures edged lower Tuesday morning, suggesting a pause in the S&P 500’s six-session winning streak. As of 12:42 GMT, S&P 500 futures were down 0.2%, while the Nasdaq 100 and Dow Jones futures slipped 0.3% and 0.1% respectively.

This soft start comes after Monday’s subdued action, which saw modest gains across major indexes. The S&P 500 now sits just 3% below its record high, underscoring the resilience of this rally despite macro headwinds including tariff uncertainty and recent U.S. credit concerns flagged by Moody’s.

Are Global Flows Favoring Europe Over U.S. Equities?

HSBC pointed to a notable rotation in equity flows, with global funds shifting capital from U.S. to European markets. Data through May 9 shows foreign investors pulled $30 billion from U.S. equities, while Germany led Europe in attracting inflows that totaled $35 billion year-to-date. Strategists attribute this trend to inconsistent trade policies and mixed economic signals, suggesting investors are searching for more predictable environments abroad.

Is Tech Still Leading the Charge?

Big tech continues to power the broader market. The Roundhill Magnificent 7 ETF (MAGS) has gained over 13% month-to-date, easily outpacing the Nasdaq-tracking QQQ, which is up 9.8%. Broader benchmarks like SPY and RSP have risen 7.3% and 6.4% respectively. The disparity underscores the market’s concentrated strength, with mega-cap tech names driving performance even as broader participation remains subdued.

Which Stocks Are Moving the Market Pre-Bell?

Home Depot (HD) rose 2.4% after affirming guidance, with plans to hold prices steady despite tariff pressures.

D-Wave Quantum (QBTS) spiked over 18% following the launch of its Advantage2 quantum system.

Pony AI (PONY) gained 5% on strong robotaxi demand, and Amer Sports surged 10% after beating earnings expectations.

Meanwhile, Viking Holdings slipped 5.6% despite a revenue beat, and MongoDB (MDB) dropped 2% on a downgrade from Loop Capital.

What Should Traders Watch Next From the Federal Reserve?

With earnings season ongoing and equities near all-time highs, trader focus turns to monetary policy signals. St. Louis Fed President Alberto Musalem is slated to speak today, offering potential clues on future rate moves. Barclays’ trading desk noted persistent investor appetite for risk and minimal concern over recent yield moves, signaling room for continued equity strength if economic data holds up.

Market Outlook: Momentum Tested but Not Broken

Despite Tuesday’s early caution, underlying momentum remains firm. Concentrated tech leadership and strong earnings from consumer names like Home Depot suggest the market isn’t ready to roll over.

However, continued attention to Fed commentary and global fund flows will be critical for assessing whether this rally can sustain.

Traders should prepare for potential headline risk but expect dip-buying interest to remain intact barring a significant policy surprise.

More Information in our Economic Calendar.