IBM Signs Letter of Intent with Commerce Department, Shares Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Major indices were higher for the second straight day as investors shrugged off the mixed earnings report from Nvidia, disallowing the market's biggest stock from souring sentiment. Utilities, Basic Materials, and Technology were the best performing sectors on the S&P 500, with the rally in the latter dominated once again by memory names. Major 2026 winners such as SanDisk, Western Digital, and Micronsaw outsized gains, though it was IBMthat stole the spotlight with a double-digit spike after the company announced the Letter of Intent signed jointly with the Department of Commerce to build an American quantum chip foundry. IBM share gains also helped Dow Industrials rejoin S&P 500 and Nasdaq Composite with record high closing levels as the index topped 50,200 for the first time since February. On the downside, Consumer Staples was the worst performing sector in the benchmark as inline earnings and disappointing guidance slammed Walmartby over 7%.In the opening hour of the evening session, S&P E-minis are up 0.2% and the Nasdaq 100 contract is up 0.3%, while WTI Crude Oil remains below $98, amid renewed hopes that U.S.-Iran negotiations will yield an outcome acceptable to both sides. Volumes will likely be compressed on Friday as investors head into an extended Memorial Day holiday weekend.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Workdayup 11.2%Zoom Communicationsup 7.7%Take-Twoup 6.4%Lionsgate Studios Corp.up 5.6%Ross Storesup 5.4%Flowers Foodsup 1.8%Webull Corporationup 1.5%ALSO HIGHER -Peloton Interactiveup 6.4% after S&P SmallCap 600 index inclusionUniversal Technical Instituteup 5.2% after S&P SmallCap 600 index inclusionDOWN AFTER EARNINGS -Deckers Outdoordown 1.6%ALSO LOWER -Summit Therapeuticsdown 8.5% after being started at Bernstein at Underperform
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Analyst Views on WDAY
Wall Street analysts forecast WDAY stock price to rise
31 Analyst Rating
22 Buy
9 Hold
0 Sell
Moderate Buy
Current: 137.990
Low
235.00
Averages
275.19
High
325.00
Current: 137.990
Low
235.00
Averages
275.19
High
325.00
About WDAY
Workday, Inc. is an enterprise artificial intelligence (AI) platform for managing people, money, and agents. The Company provides organizations with cloud solutions powered by artificial intelligence (AI) to solve business challenges, including supporting and empowering the workforce, managing finances and spending. It offers a suite of cloud-based enterprise solutions that address the needs of the C-suite on a platform designed to be open, extensible, and configurable, allowing integration with other applications and the ability for customers and partners to build custom applications. It offers Workday Build, which is an open developer platform that provides customers and partners with the ability to create and share AI-powered solutions. It serves financial services, government, healthcare, higher education, hospitality, manufacturing, professional and business services, retail, technology and media, and transportation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Show Mixed Movement, Led by Chipmakers
- Market Performance: The S&P 500 Index rose by 0.43% and the Nasdaq 100 Index increased by 1.17%, driven by strong performances from chipmakers and AI infrastructure stocks, reflecting heightened investor confidence in technology shares.
- Oil Price Impact: WTI crude oil prices fell by 0.5% as Saudi Arabia and the UAE ramped up shipments to near pre-war levels, which eased inflation expectations and led to a 2 basis point drop in the 10-year T-note yield to 4.46%, providing support for the bond market.
- Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% growth, indicating that AI spending will be a major driver, expected to contribute nearly 60% to the S&P 500's earnings-per-share growth.
- International Market Dynamics: European stock markets are generally down, with Eurozone May retail sales rising 0.2% month-over-month, below the expected 0.3%, while German May factory orders increased by 1.9%, exceeding the expected 1.1%, indicating a mixed economic recovery.
See More
O'Reilly Automotive Shares Drop 5.4% Today
- Poor Stock Performance: O'Reilly Automotive's shares have dropped 5.4% today, making it the worst performer in the Nasdaq 100, indicating market concerns about its future growth prospects.
- Year-to-Date Review: Year-to-date, O'Reilly Automotive's performance has declined approximately 6.4%, highlighting the challenges and pressures it faces in the competitive automotive parts market.
- Market Dynamics: In contrast, Workday's shares fell by 4.4%, while Western Digital's shares rose by 7.8%, suggesting significant differences in market reactions to various companies, which may influence investors' asset allocation strategies.
- Investor Sentiment: The ongoing decline in O'Reilly Automotive's stock may prompt investors to reassess its financial health, potentially impacting its future financing capabilities and market confidence.
See More
Market Performance Analysis for H1 2026
- Intuit's Stock Plunge: Intuit's stock has fallen nearly 60% in H1 2026, with a market cap of about $75 billion and a trailing P/E ratio of 17, indicating that despite panic over AI threats, its software products still hold significant value.
- Adobe's Continued Decline: Adobe's stock is down 37% in H1 2026, with a total decline of 63% over the past five years; although its revenue grew by 13% in the latest quarter, the market's reaction to AI may be exaggerated, as professionals still rely on its high-quality editing software.
- Workday's Poor Performance: Workday's stock has dropped around 37% in H1 2026, and while its cloud platform uses AI to enhance customer operations, its P/E ratio exceeds 40, suggesting a high valuation with limited confidence for a near-term rebound.
- Overall Market Trends: Despite the Nasdaq and S&P 500 indices rising approximately 11% and 9%, respectively, many stocks are underperforming, highlighting internal market divergence and necessitating cautious selection of potential rebound opportunities by investors.
See More
Software Stocks Under Pressure as AI Concerns Rise
- Software Sector Struggles: In the first half of 2026, Intuit, Adobe, and Workday were the worst performers on the Nasdaq-100, each down over 35%, reflecting market concerns about the software industry's vulnerability to potential disruptions from artificial intelligence (AI).
- Intuit's Market Cap Decline: Intuit's stock has plummeted nearly 60% year-to-date, with its market cap now around $75 billion; despite a 10% revenue growth in the latest quarter and raised full-year guidance, investor confidence remains shaky amid fears of AI's impact.
- Adobe's AI Overreaction: Adobe's stock fell 37% in the first half of 2026, although it reported a 13% revenue increase in May; the market's reaction to AI may be exaggerated, particularly in image editing, where professionals still rely heavily on its Photoshop software.
- Workday's Valuation Concerns: Workday, slightly better off with a 37% decline, has a high price-to-earnings ratio exceeding 40, and while its growth rate is nearly 14%, the elevated valuation raises doubts about a near-term recovery, compounded by ongoing trust issues surrounding AI integration.
See More
Mixed Close for US Stocks as Chipmakers Continue to Decline
- Market Divergence: On Thursday, the S&P 500 closed unchanged, while the Dow Jones Industrial Average rose 1.14% to a new all-time high, and the Nasdaq 100 fell 1.61%, indicating a split in market sentiment, particularly due to the ongoing weakness in chip stocks impacting the broader market.
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, although the unemployment rate unexpectedly fell to a one-year low of 4.2%, suggesting a stronger labor market than anticipated, which may influence the Fed's interest rate decisions.
- Chipmaker Declines: Chipmakers faced another sell-off on Thursday, with the iShares Semiconductor ETF dropping over 5%, and SanDisk and KLA Corp falling more than 14% and 12%, respectively, reflecting growing market concerns over the sustainability of the AI buildout boom.
- Oil Price Decline Impact: WTI crude oil prices fell to a fresh 4.25-month low as UAE ramped up shipments by 30% in June, restoring exports to pre-war levels, a trend that may further lower inflation expectations and affect market sentiment.
See More
Mixed Performance in US Stocks as Nasdaq Faces Pressure
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, with May's figures revised down to 129,000, indicating a slowdown in the labor market that could influence the Fed's interest rate decisions and suppress stock market performance.
- Mixed Market Performance: The S&P 500 index is up 0.10% and the Dow Jones Industrial Average is up 0.85%, while the Nasdaq 100 index is down 0.92%, reflecting cautious sentiment towards tech stocks, particularly amid ongoing weakness in chipmakers and AI infrastructure stocks.
- International Market Dynamics: Overseas stock markets are generally rising, with the Euro Stoxx 50 reaching a new record high, indicating global investor optimism about economic recovery, which may provide support for the US market.
- Oil Price Fluctuations: WTI crude oil prices have fallen over 1% to a fresh 4.25-month low due to increased global supplies, with UAE ramping up shipments by 30% in June, which could impact the performance of energy-related stocks.
See More
US Stocks Show Mixed Movement, Led by Chipmakers
- Market Performance: The S&P 500 Index rose by 0.43% and the Nasdaq 100 Index increased by 1.17%, driven by strong performances from chipmakers and AI infrastructure stocks, reflecting heightened investor confidence in technology shares.
- Oil Price Impact: WTI crude oil prices fell by 0.5% as Saudi Arabia and the UAE ramped up shipments to near pre-war levels, which eased inflation expectations and led to a 2 basis point drop in the 10-year T-note yield to 4.46%, providing support for the bond market.
- Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% growth, indicating that AI spending will be a major driver, expected to contribute nearly 60% to the S&P 500's earnings-per-share growth.
- International Market Dynamics: European stock markets are generally down, with Eurozone May retail sales rising 0.2% month-over-month, below the expected 0.3%, while German May factory orders increased by 1.9%, exceeding the expected 1.1%, indicating a mixed economic recovery.
See More
O'Reilly Automotive Shares Drop 5.4% Today
- Poor Stock Performance: O'Reilly Automotive's shares have dropped 5.4% today, making it the worst performer in the Nasdaq 100, indicating market concerns about its future growth prospects.
- Year-to-Date Review: Year-to-date, O'Reilly Automotive's performance has declined approximately 6.4%, highlighting the challenges and pressures it faces in the competitive automotive parts market.
- Market Dynamics: In contrast, Workday's shares fell by 4.4%, while Western Digital's shares rose by 7.8%, suggesting significant differences in market reactions to various companies, which may influence investors' asset allocation strategies.
- Investor Sentiment: The ongoing decline in O'Reilly Automotive's stock may prompt investors to reassess its financial health, potentially impacting its future financing capabilities and market confidence.
See More
Market Performance Analysis for H1 2026
- Intuit's Stock Plunge: Intuit's stock has fallen nearly 60% in H1 2026, with a market cap of about $75 billion and a trailing P/E ratio of 17, indicating that despite panic over AI threats, its software products still hold significant value.
- Adobe's Continued Decline: Adobe's stock is down 37% in H1 2026, with a total decline of 63% over the past five years; although its revenue grew by 13% in the latest quarter, the market's reaction to AI may be exaggerated, as professionals still rely on its high-quality editing software.
- Workday's Poor Performance: Workday's stock has dropped around 37% in H1 2026, and while its cloud platform uses AI to enhance customer operations, its P/E ratio exceeds 40, suggesting a high valuation with limited confidence for a near-term rebound.
- Overall Market Trends: Despite the Nasdaq and S&P 500 indices rising approximately 11% and 9%, respectively, many stocks are underperforming, highlighting internal market divergence and necessitating cautious selection of potential rebound opportunities by investors.
See More
Software Stocks Under Pressure as AI Concerns Rise
- Software Sector Struggles: In the first half of 2026, Intuit, Adobe, and Workday were the worst performers on the Nasdaq-100, each down over 35%, reflecting market concerns about the software industry's vulnerability to potential disruptions from artificial intelligence (AI).
- Intuit's Market Cap Decline: Intuit's stock has plummeted nearly 60% year-to-date, with its market cap now around $75 billion; despite a 10% revenue growth in the latest quarter and raised full-year guidance, investor confidence remains shaky amid fears of AI's impact.
- Adobe's AI Overreaction: Adobe's stock fell 37% in the first half of 2026, although it reported a 13% revenue increase in May; the market's reaction to AI may be exaggerated, particularly in image editing, where professionals still rely heavily on its Photoshop software.
- Workday's Valuation Concerns: Workday, slightly better off with a 37% decline, has a high price-to-earnings ratio exceeding 40, and while its growth rate is nearly 14%, the elevated valuation raises doubts about a near-term recovery, compounded by ongoing trust issues surrounding AI integration.
See More
Mixed Close for US Stocks as Chipmakers Continue to Decline
- Market Divergence: On Thursday, the S&P 500 closed unchanged, while the Dow Jones Industrial Average rose 1.14% to a new all-time high, and the Nasdaq 100 fell 1.61%, indicating a split in market sentiment, particularly due to the ongoing weakness in chip stocks impacting the broader market.
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, although the unemployment rate unexpectedly fell to a one-year low of 4.2%, suggesting a stronger labor market than anticipated, which may influence the Fed's interest rate decisions.
- Chipmaker Declines: Chipmakers faced another sell-off on Thursday, with the iShares Semiconductor ETF dropping over 5%, and SanDisk and KLA Corp falling more than 14% and 12%, respectively, reflecting growing market concerns over the sustainability of the AI buildout boom.
- Oil Price Decline Impact: WTI crude oil prices fell to a fresh 4.25-month low as UAE ramped up shipments by 30% in June, restoring exports to pre-war levels, a trend that may further lower inflation expectations and affect market sentiment.
See More
Mixed Performance in US Stocks as Nasdaq Faces Pressure
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, with May's figures revised down to 129,000, indicating a slowdown in the labor market that could influence the Fed's interest rate decisions and suppress stock market performance.
- Mixed Market Performance: The S&P 500 index is up 0.10% and the Dow Jones Industrial Average is up 0.85%, while the Nasdaq 100 index is down 0.92%, reflecting cautious sentiment towards tech stocks, particularly amid ongoing weakness in chipmakers and AI infrastructure stocks.
- International Market Dynamics: Overseas stock markets are generally rising, with the Euro Stoxx 50 reaching a new record high, indicating global investor optimism about economic recovery, which may provide support for the US market.
- Oil Price Fluctuations: WTI crude oil prices have fallen over 1% to a fresh 4.25-month low due to increased global supplies, with UAE ramping up shipments by 30% in June, which could impact the performance of energy-related stocks.
See More
