Bank of America, Morgan Stanley tick higher premarket; TeraWulf tumbles

U.S. equity futures were little changed, with Dow futures down 26 points (-0.1%) as markets weighed renewed U.S.-Iran negotiations against a reported 10,000-troop U.S. deployment to the Middle East. Bank of America and Morgan Stanley posted stronger first-quarter results, while Snap announced 1,000 layoffs and $500 million in annualized cost savings, sending its shares up 10%. Other notable movers included Broadcom on an expanded Meta AI partnership, ASML on a higher sales outlook, TeraWulf after a revenue miss, and Robinhood/Webull after SEC approval of day-trading rule changes.

Analysis

The clearest immediate winner is the trade complex, not the headline banks themselves. BAC and MS should see a second-order lift from elevated client activity and wider dispersion in rates/FX/equities, but the more interesting read-through is that capital markets revenue is becoming more durable while loan growth remains sluggish; that supports multiple expansion for the best trading franchises versus deposit-heavy regionals. If risk sentiment holds, the market may start paying for balance sheet optionality again rather than just net interest margin.

SNAP’s rally is less about the cost cut than about forcing a reset in expectations: the company is effectively buying time until ad budgets normalize, and the real debate is whether this is a one-quarter margin bridge or the beginning of a slower-growth, higher-discipline regime. That matters for META and other ad platforms because any perception of cost rationalization in smaller peers can temporarily improve investor tolerance for lower growth, but it also intensifies pressure on weaker ad-tech names that lack scale leverage.

On the semiconductor side, AVGO/META’s expanded AI deployment is incrementally positive, but the bigger implication is that AI capex is still concentrating in the handful of platforms with the cheapest cost of capital and the clearest monetization path. ASML’s stronger full-year outlook looks supportive, yet the near-term setup is fragile because equipment names are trading on 12-24 month demand visibility while investors focus on quarterly guide precision; that creates asymmetric downside if the June-quarter tone is conservative. Meanwhile, the quantum-computing basket may be overreacting to a headline catalyst with little fundamental translation, and FSLR’s move is likely more of a policy/externality trade than an earnings revision story. WULF remains the cleanest loser because miners with weak operating leverage and financing needs get punished first when BTC-linked equity beta fades.

Key Decisions for Investors

• Long BAC / long MS on a 2-6 week horizon vs. regional banks: prefer the pair because trading revenue and market volatility support fee income while deposit sensitivity remains a headwind for smaller lenders.
• Buy SNAP into strength only as a tactical trade, not a long-term compounder; consider selling 1-2 month upside calls against stock to capture the post-gap re-rating while implied volatility is elevated.
• Fade WULF on rallies over the next 1-3 weeks; use put spreads or a short against stronger BTC miners as a cleaner expression of balance-sheet/operating leverage risk.
• Pair long AVGO vs. short ASML for the next quarter if you want AI capex exposure with less earnings-guide risk; AVGO monetizes the spend directly, while ASML is more vulnerable to any near-term guide conservatism.
• Initiate a small HOOD/WB long basket for 1-2 months if confirmation of rule changes sustains retail activity; structure with tight stops because the move is policy-sensitive and can retrace quickly.