This morning's premarket action is a story about where conviction is running and where it has quietly run out.

Defense tech and AI infrastructure are getting rewarded with fresh institutional support, while names that have already had their run are facing harder questions about what comes next.

The day's biggest movers aren't all telling the same story. Some are getting lifted by analyst upgrades calling out stretched valuations that have finally swung back to attractive. Others are being pressured by guidance that didn't hold up to what the street was expecting, a reminder that beating last quarter is only half the job.

Every modern rocket engine relies on extreme-performance materials. But there’s a limited global supply supporting a rapidly expanding space industry.

Read the full report to see why it matters… and which player might matter most.

Swarmer Inc. (SWMR): ~+25%

The AI drone software company just had the best IPO debut for a U.S. stock in nearly a year, and this morning it's set to extend those gains into day two. Swarmer's platform, built on over 100,000 combat missions in Ukraine, has tapped directly into the moment: defense tech and autonomous systems are exactly where retail and institutional appetite is running hottest right now.

Macy's (M): +7%

The department store retailer posted a stronger-than-expected quarter, beating both revenue and profit expectations. In an environment where many discretionary names have been struggling to meet the bar, Macy's performance signals the kind of operational execution the market is willing to reward.

Grail Inc. (GRAL): +2%

TD Cowen upgraded the life sciences company to buy from hold, arguing that the recent selloff has created an attractive entry point.

T1 Energy (TE): +1.5%

The solar equipment maker announced it secured 50 megawatts of grid power in Norway for a data center, a tangible operational win that connects the company to the AI infrastructure buildout narrative.

Gemini Space Station Inc. (GEMI): -7%

Citi cut its recommendation on the crypto exchange to sell from neutral. In a market where crypto sentiment can shift fast, a sell-side downgrade to sell is the kind of call that shakes out holders who bought on the thesis and now have cover to exit.

Lululemon (LULU): -2%

The athletic apparel retailer posted strong results last quarter, but the market is focused on what comes next, and the full-year outlook came in below what analysts were penciling in.

Duolingo (DUOL): -1.5%

Argus Research downgraded the language learning app to hold from buy. The stock has been a strong performer on the back of its AI-powered product push, so a step back to neutral from a bull suggests that momentum might be fading.

CF Industries (CF): -0.5%

Mizuho downgraded the fertilizer company to underperform, making the move even more pointed given that the stock had already run on expectations that the Iran war and disruptions to the Strait of Hormuz would tighten global fertilizer supply. The downgrade is a signal that the analyst thinks the trade is largely priced in.

Every modern rocket engine relies on extreme-performance materials. But there’s a limited global supply supporting a rapidly expanding space industry.

Read the full report to see why it matters… and which player might matter most.

Reddit Inc. (RDDT)

Reddit stock has gained some fresh momentum as the chatter is building around a fresh catalyst: a new advertising partnership with Pacvue that gives brands direct access to Reddit's ad inventory through a major retail media platform. For a social media company whose stock has been in a broad tech selloff slump, that kind of tangible commercial development is exactly what retail traders are looking for as a rebound signal.

The stock has gained roughly 9% over the last three sessions, and is a persistent fixture in Reddit's own investing subreddits (yes, traders on Reddit love talking about Reddit). It has been named Needham's top conviction pick for 2026 on the thesis that its human-generated content is uniquely valuable to AI companies. Whether this ad partnership is enough to sustain the momentum or whether the broader tech headwinds reassert themselves is the open question heading into today's session.

✌️That’s it for today.