The Day Ahead: Markets Eye Target and Snowflake Earnings Today After Rally Pauses

Market Overview

U.S. equity futures are under modest pressure early Wednesday, giving back some gains after a sharp recovery run. S&P 500 futures are off 0.3%, with Nasdaq 100 and Dow futures showing similar declines. Tuesday’s session marked a broad pullback as the S&P 500 snapped a six-day winning streak, while the Dow and Nasdaq ended three-day and two-day streaks, respectively.

Despite the retreat, all major indexes remain firmly above their April 2 levels—when tariffs were announced—and are in positive territory for the year. That backdrop reflects a rally driven by easing trade tensions and resilient earnings, but traders are watching for signs of fatigue and renewed volatility amid lingering political and fiscal concerns in Washington.

Notable Earnings

Before the Open:

• Target (TGT) is in focus ahead of its Q1 report. Analysts expect EPS of $1.70 on $24.4B in revenue, both down year over year. Management has previously warned of margin pressures from consumer softness and tariffs. Oppenheimer sees potential downside risk to full-year guidance but remains long-term constructive.
• Other key names reporting include Lowe’s (LOW) with a consensus EPS of $2.89, TJX (TJX) at $0.91, Medtronic (MDT) at $1.58, and Canada Goose (GOOS) at $0.16.

After the Close:

• Snowflake (SNOW) delivers fiscal Q1 results following a 40% rally since April. Expectations are for EPS of $0.21 on $1.01B in revenue. Morgan Stanley notes stable growth with some March softness in bookings, but overall deal volume remains solid.
• Other notable reports post-close include Zoom (ZM) with EPS seen at $1.31, Urban Outfitters (URBN) at $0.84, and LiveRamp (RAMP) at $0.28.

Commodities, Crypto, and Bonds

Gold is trading at a one-week high, with spot prices up 0.2% to $3,293.98/oz, supported by a weaker dollar and heightened fiscal uncertainty. U.S. futures are also higher. The dollar has declined on skepticism surrounding a proposed tax bill and a Moody’s downgrade, making gold more attractive. Technical commentary points to continued upside unless new trade optimism reverses sentiment.

Central Bank Activity

St. Louis Fed President Alberto Musalem suggested on Tuesday that easing trade tensions could help inflation trend toward the Fed’s 2% target without disrupting labor markets. Traders are pricing in rate cuts starting in October, with roughly 54 bps of easing by year-end 2025.

Technical Outlook

All three indexes are consolidating just below recent highs following extended rallies.

The S&P 500 hit resistance near 5993.50, just above its 200-day SMA at 5883.95, with short-term support at 5596.00. The Nasdaq 100 is pulling back after testing 21529.75, while the Dow faces pressure beneath resistance at 42763, also testing the 200-day SMA. Any break below these levels could trigger a deeper retracement.

Outlook

Markets are cooling off after a strong multi-week advance, with attention turning to earnings and Washington headlines. With no key economic data on deck, traders will focus on corporate results and political developments. Risk lies in disappointing retail earnings or renewed fiscal gridlock.

More Information in our Economic Calendar.