A Broadly Positive Session
All four major U.S. averages closed higher on the day, with the S&P 500 and the Nasdaq 100 both notching fresh record highs. The strength was led by cyclical and resource-oriented corners of the market, with energy leading the way, followed by materials and industrials. On the other side of the ledger, communications was the lagging sector, with consumer staples and consumer discretionary also trailing the broader rally. The mix of leaders and laggards points to a session driven more by economically sensitive areas than by the defensive or growth-oriented names that have powered much of the recent advance.
Hims and Hers Disappoints After the Close
The most notable post-close earnings story came from Hims and Hers, which missed both top and bottom line estimates and posted a surprise loss of 40 cents per share. Despite the miss, the underlying business showed signs of continued expansion. Revenue rose 4% year-over-year, supported by subscriber growth of 9% — a reminder that the customer acquisition engine remains intact even as profitability came under pressure. Management leaned into that growth narrative by raising full-year revenue guidance and updating its adjusted EBITDA guidance range, signaling confidence in the trajectory of the business even as the latest quarter fell short of Wall Street's expectations.
Circle Rallies on Mixed Earnings and an AI Pivot
Circle delivered an interesting combination of results before the bell, posting a mixed report that nonetheless sent the stock higher. The stablecoin issuer paired its earnings update with the launch of Circle Agent Stack, an AI payments tool aimed squarely at the emerging "agentic economy" — a market in which autonomous AI agents transact on behalf of users and businesses. The strategic angle is significant: by building infrastructure for AI-driven payments, Circle is positioning its flagship USDC stablecoin as a settlement layer for a new category of digital commerce. The underlying numbers reinforced that ambition, with USDC circulation rising nearly 30% year-over-year, suggesting that adoption of dollar-pegged digital assets continues to expand at a healthy clip.
Lumentum Joins the Nasdaq-100
A major index shake-up provided one of the day's most dramatic moves. The optical networking company Lumentum rallied to a new all-time high after announcing that it will be added to the Nasdaq-100, replacing Co-Star Group in the tech-heavy benchmark. The change is set to take effect ahead of the open on Monday, May 18th. The inclusion caps a remarkable run for the stock, which has surged more than 1,500% over the last 52 weeks. The rally reflects the broader investor enthusiasm for the picks-and-shovels infrastructure powering the AI buildout, as optical networking sits at the heart of the high-bandwidth, low-latency connectivity that modern data centers require. Index inclusion typically brings forced buying from passive funds tracking the benchmark, often providing an additional tailwind in the weeks surrounding the official switch.
Looking Ahead
The setup for tomorrow features a busy slate of catalysts. On the earnings front, On Holding and JD.com are scheduled to report pre-market, while Oklo will release results after the close — a lineup that spans consumer discretionary, Chinese e-commerce, and next-generation nuclear energy. On the economic data side, attention will turn to the April CPI report, which remains one of the most closely watched gauges of inflation and a key input into Federal Reserve policy expectations. The NFIB small business optimism index, also covering April, will round out the morning's data and offer a window into sentiment among smaller firms that often serve as a leading indicator for the broader economy.
Themes Worth Watching
Taken together, the day's developments highlight several intertwined themes shaping the current market. Cyclical sectors are participating alongside the megacap technology names that have driven much of the rally, broadening the leadership profile. Earnings season continues to deliver mixed signals, with growth-oriented companies like Hims and Hers showing that subscriber momentum can coexist with near-term margin pressure. The intersection of artificial intelligence and financial infrastructure is becoming an increasingly important narrative, exemplified by Circle's pivot toward AI-driven payments. And index reconstitutions remain powerful catalysts in their own right, capable of rewarding companies whose underlying businesses have grown into a place at the center of the market's most important indices.