Chicago-headquartered McDonald’s Corp (MCD) is inching higher in the run-up to its Q1 earnings set to land on May 7^th before market open.

Consensus is for the fast-good giant to post $2.75 per share of earnings (EPS) for its first financial quarter on an 8.9% year-over-year increase in revenue to $6.49 billion.

Despite recent gains, McDonald’s stock has been a major laggard in 2026, currently down roughly 17% versus its year-to-date high in late February.

Prediction markets expect MCD to beat Q1 estimates

Heading into McDonald’s quarterly release, the “wisdom of the crowd” in decentralized finance is leaning toward a positive surprise.

According to Polymarket, traders are pricing in a 77% chance that MCD will come in ahead of Q1 estimates on Thursday – and the sentiment is mirrored in the “high-stakes” world of the derivatives market.

The put-to-call ratio on options contracts expiring May 8 sits at 0.5 currently – indicating a bullish skew – with the upper price at $294, suggesting MCD shares could be up over 3% from here after earnings.

McDonald’s technicals also warrant a near-term pop.

At the time of writing, the company’s relative strength index (RSI) sits in the early 30s, indicating it’s already hovering around the “oversold” territory.

Historically, this is where buyers tend to step back in.

UBS reiterates ‘buy’ rating on McDonald’s stock

Investors should also note that Wall Street analysts have similar expectations heading into MCD’s first-quarter earnings on May 7^th.

Earlier this week, UBS analysts led by Dennis Geiger maintained their “buy” rating on the NYSE-listed firm, with a $365 price target indicating potential upside of more than 28% from here.

In his research note, Geiger said the “risk-reward for McDonald’s shares is attractive despite near-term pressures”.

While investors have expressed concern over slowing US sales and global conflicts, UBS believes MCD is strongly positioned to capture market share through its new “3 for 3” strategy focusing on value, marketing, and menu innovation.

McDonald’s “defensive characteristics should provide earnings stability in a still volatile environment,” the analyst concluded.

What could drive MCD shares higher in 2026?

To counter the “macroeconomic pressures” squeezing lower-income consumers, McDonald’s has leaned heavily into affordability and pop-culture relevance.

The April launch of the “McValue 2.0” menu – which offers ten items under $3 alongside bundled meal deals- is expected to “further resonate with customers” in key markets.

Dennis Geiger also pointed to MCD’s creative flair, particularly its menu collaboration with the hit Netflix series KPop Demon Hunters, as a near-term catalyst.

“Solid execution on key sales plans will continue, w/value, marketing, and menu innovation likely to further resonate globally with customers, including in the US,” he wrote.

All in all, by blending rock-bottom pricing with high-energy marketing, MCD stock aims to prove that even in a tough economy, the world is still lovin’ it.

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GameStop (NYSE: GME) opened in the “red” this morning after Big Short investor Michael Burry confirmed he’s cut his entire stake in the gaming merchandise retailer.

The subsequent downward pressure has GME challenging its 100-day moving average (MA) today – with a decisive break below $23 expected to accelerate bearish momentum in the near-term.

Including today’s decline, GameStop stock is down over 10% versus its recent high.

Why Burry sold his stake in GameStop stock

Burry’s change of heart on GME shares is primarily related to the firm’s proposal to acquire eBay for nearly $56 billion, a colossal outlay compared to its own market cap of $10 billion currently.

The deal’s heavy leverage – reportedly involving $20 billion in new debt – is “incompatible” with a sound capital structure, the famed investor noted in his Cassandra Unchained Substack.

According to him, the buyout would push GameStop’s debt-to-EBITDA ratio to a staggering 7.7x, adding that the bid essentially invalidates his “Instant Berkshire” thesis.

“Instant Berkshire didn’t contemplate anywhere near 5x+ leverage,” Burry wrote. “Never confuse debt for creativity.”

In short, for the former hedge fund manager, GME’s shift from a lean, cash-rich “mini-Berkshire” to a debt-laden conglomerate was a clear signal to walk away before the ink even dries.

The problem with GameStop’s bid for eBay

Beyond Burry’s departure, GameStop shares continue to face significant fundamental headwinds.

The proposed $125-per-share offer for EBAY represents a massive 46% premium over its current levels – a price tag many analysts call “reckless” given GME’s own valuation.  

While CEO Ryan Cohen points to $418 million net income in 2025 as proof of a turnaround, critics argue that the eBay proposal is a desperate attempt to find growth as the core physical gaming business continues to secularly decline.

Meanwhile, at about 30x earnings, GameStop is priced for perfection in a scenario that now looks increasingly messy and expensive.

How to play GME shares as it tests the 100-day MA

All in all, with GameStop attempting to acquire eBay and Michael Burry unloading his entire stake in GME stock, the risk-reward profile has shifted dramatically.

While the “diamond hands” community remains vocal, the exit of a foundational bull like Burry – coupled with a high-stakes, debt-fueled pivot into the crowded e-commerce space – indicates a dangerous environment for retail portfolios.

The brief dip below the 100-day MA this morning serves as a warning that GameStop may continue to face pressure in the near-term.

If GME fails to convince the market that it can successfully integrate a company about five times its size without collapsing under the weight of its own debt, today’s sell-off may be the beginning of a longer winter for GameStop.

Note that the gaming merchandise retailer no longer receives coverage from Wall Street analysts, another major red flag for disciplined investors.

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Shares of Circle surged sharply after US lawmakers reached a compromise on the market structure legislation known as the CLARITY Act, easing a key area of uncertainty around stablecoin rewards.

The stock jumped 16%, while Coinbase, the primary distributor of Circle’s USDC stablecoin, rose more than 7%.

Other digital asset firms also gained, with BitGo up 12% and Galaxy Digital advancing 5%.

The move came after revised language in the bill clarified how stablecoin issuers can incentivize users.

Bitcoin was little changed at around $79,000, after briefly topping $80,000 over the weekend.

Lawmakers draw line on yield, allow activity-based rewards

At the center of the development is a compromise that restricts stablecoin issuers from offering interest-like returns on passive deposits, while still permitting rewards tied to user activity.

The updated proposed Digital Asset Market Clarity Act text states: “No covered party shall, directly or indirectly, pay any form of interest on yield (whether in cash, tokens, or other consideration) to a restricted recipient — (A) solely in connection with the holding of such restricted recipient’s payment stablecoins; or (B) on a payment stablecoin balance in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.”

However, the legislation allows incentives tied to “bona fide activities or bona fide transactions,” preserving mechanisms such as trading or transactional rewards.

This distinction aligns crypto reward structures more closely with models used in traditional financial products like credit cards.

The compromise was negotiated by US Senators Thom Tillis and Angela Alsobrooks and is expected to clear the way for a Senate Banking Committee markup, a key procedural step in advancing the bill.

Industry participants noted that firms may need to shift from “buy and hold” yield offerings to models centered on active usage to comply with the proposed framework.

Industry response and broader implications

The revised language has been broadly welcomed by major industry players.

Coinbase CEO Brian Armstrong, who has been closely involved in discussions, wrote “Mark it up.”

Meanwhile, Coinbase chief legal officer Paul Grewal said the framework “preserves activity-based rewards tied to real participation on crypto platforms and networks, which is what the bank lobby said they wanted,” adding that “we’re focused on getting a bill done and are satisifed that this language should not be the basis of any objection.”

Traditional financial institutions have also reacted positively.

Bank of America described the outcome as supportive for the broader sector. “Across bank sub-sectors, the CLARITY Act’s resolution of the stablecoin yield debate is a net positive,” said analyst Ebrahim H. Poonawala.

“It should alleviate concerns tied to deposit flight, reduce regulatory uncertainty, and allow banks to engage with digital-asset infrastructure on more controlled terms.”

The development highlights a broader shift in the crypto industry away from passive yield products and toward utility-driven use cases.

While the compromise is seen as a relative win for large players like Circle and Coinbase, it may pressure smaller platforms that rely heavily on high-yield deposit products to attract users.

The legislation also includes provisions for future rulemaking by the US Treasury and the Commodity Futures Trading Commission, which will further define how rewards can be structured.

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The Federal Reserve kept borrowing costs unchanged on Wednesday, holding the federal funds rate in the 3.50% to 3.75% range for a third straight meeting.

But this was no routine pause.

The vote was the most divided since 1992, with four officials dissenting, and that split sent a clear message to investors: the Fed is entering a more uncertain phase just as markets are starting to price out rate cuts for the rest of 2026.

Wall Street ended the day mixed, but the bigger move is happening underneath the surface, as money shifts toward companies with real earnings power and durable demand.

Wall Street is repositioning fast

The market takeaway from the meeting was not simply that rates stayed put.

It was that the central bank is divided on what comes next.

The traders were betting on Wednesday that there would be no rate cuts in 2026, which is a big change from the more hopeful setup that dominated earlier in the year.

That puts a premium on businesses that can grow even without easier money.

In a “higher for longer” world, investors tend to favor companies that can lift earnings on their own, rather than stocks that depend on lower rates to justify their valuations.

There is also a leadership layer to the story.

Jerome Powell’s term as Fed chair expires on May 15, 2026, adding another source of uncertainty just as investors are already wrestling with inflation and the policy path ahead.

The next key test comes quickly: the April employment report is scheduled for Friday, May 8, at 8:30 a.m. ET.

A strong number could reinforce the view that the Fed has room to stay patient, which would keep pressure on rate-sensitive stocks and support names with sturdier fundamentals.

5 stocks Wall Street is quietly loading up

1. Micron is one of the cleaner ways to play the AI buildout without paying a premium for it.

The stock is at about 7.83 times forward earnings, a low multiple for a company tied directly to AI memory demand.

Micron’s revenue and earnings were surging on booming demand for memory chips used in AI systems, even as it raised fiscal 2026 spending to keep up with that demand.

2. Amazon is another favorite because it is no longer just a cloud story.

AWS revenue jumped 28% to $37.6 billion in the first quarter, while Amazon said advertising revenue reached more than $70 billion on a trailing 12-month basis.

That matters because AWS and ads are both high-margin engines, which gives Amazon more ways to grow even if consumer spending slows.

3. Palantir remains one of the clearest pure-play AI momentum names.

The company’s quarterly revenue rose to $1.41 billion, up 70%, with US government revenue jumping 66% in the fourth quarter.

That kind of growth is rare at any market cap, especially one tied to both government contracts and commercial AI deals.

4. Broadcom is gaining attention for a slightly different reason.

The company’s forecast more than $100 billion in AI chip sales next year and signed a long-term deal with Google to develop future generations of custom AI chips through 2031.

That makes Broadcom a major beneficiary of the shift toward custom silicon, where hyperscalers want alternatives to Nvidia-heavy systems.

5. GE Vernova rounds out the group as a power-and-grid play on the same AI cycle.

The company lifted its 2026 outlook because data-center electricity demand is driving more orders for gas turbines and grid equipment.

It now expects 2026 revenue of $44.5 billion to $45.5 billion, and its backlog climbed to $163 billion.

That makes GE Vernova one of the most direct ways to own the infrastructure side of the AI boom.

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