Dell and NetApp Surge 24%, Gap Plunges 28% on Earnings

Shares of Dell Technologies and NetApp surged more than 24% on Friday, May 29, 2026, following stronger-than-expected quarterly earnings, according to reporting by Seeking Alpha. In stark contrast, apparel retailer Gap plummeted 28% after slashing its full-year profit outlook. The divergent moves underscore a volatile end to the week as investors digested first-quarter corporate results across the technology and consumer discretionary sectors.

Context — why this matters now

Major technology earnings this week have served as a critical stress test for capital expenditure forecasts amid a backdrop of moderating economic growth. The last comparable surge for Dell occurred on August 31, 2023, when shares gained 21% following an AI server demand announcement. The current macro environment features the 10-year Treasury yield at 4.31% and the S&P 500 index testing year-to-date highs.

The catalyst for Dell and NetApp was a clear beat on both revenue and profit metrics, driven by accelerating demand for artificial intelligence infrastructure and data storage solutions. For Gap, the trigger was a severe guidance cut, citing weak same-store sales and margin pressure. These reports arrived during a period where market sentiment is finely balanced between optimism for AI-driven growth and concern over softening consumer spending.

Data — what the numbers show

Dell's stock closed at $180.24, a gain of 24.5% for the session, adding approximately $40 billion to its market capitalization. NetApp shares finished at $145.67, up 24.8%. Both companies reported quarterly revenue that exceeded analyst consensus estimates by over 5%. In contrast, the SPDR S&P 500 ETF Trust (SPY) gained a modest 0.3% on the day.

The sell-off in retail was severe. Gap stock closed at $18.45, down 28.1%, erasing nearly $3 billion in value. Peer American Eagle Outfitters also fell 9.5% on the session. Gap's new full-year earnings per share guidance range of $1.20 to $1.40 represents a 30% reduction from its prior forecast. The disparity in performance is highlighted in the following intraday move comparison:

• Dell Technologies (DELL): +24.5%
• NetApp (NTAP): +24.8%
• Hewlett Packard Enterprise (HPE): +6.2%
• Elastic (ESTC): -8.1%
• Gap (GPS): -28.1%

Analysis — what it means for markets / sectors / tickers

The Dell and NetApp rallies signal sustained institutional investment in AI and hybrid cloud infrastructure, benefiting related semiconductor and hardware suppliers. Companies like NVIDIA, Marvell Technology, and Pure Storage may see positive sentiment spillover. The weakness at Gap and American Eagle points to broader challenges in value-oriented apparel retail, potentially impacting shares of Kohl's and The TJX Companies.

A key counter-argument is that Dell's surge may reflect a catch-up trade after lagging peers, rather than a fundamental re-rating of the entire sector. Positioning data from options markets showed a significant unwind of put options on Dell ahead of the report, while hedge funds had increased short exposure to consumer discretionary stocks throughout May. Capital flow is rotating decisively from consumer-facing names to enterprise technology providers.

Outlook — what to watch next

The next immediate catalyst is the Personal Consumption Expenditures price index report due May 30, which will inform Federal Reserve policy. The May U.S. jobs report, scheduled for release on June 6, will provide further evidence on consumer health. For the technology sector, Hewlett Packard Enterprise's investor day on June 10 will be scrutinized for its AI roadmap details.

Key technical levels to monitor include Dell's stock price against the $185 resistance level, a prior high from March 2026. For Gap, the $17.50 level represents a critical long-term support zone from 2022. The relative strength of the Technology Select Sector SPDR Fund (XLK) versus the Consumer Discretionary Select Sector SPDR Fund (XLY) will indicate whether this sector divergence persists.

Frequently Asked Questions

What does Gap's earnings miss mean for retail ETFs?

The 28% plunge in Gap stock exerts direct downward pressure on retail-focused exchange-traded funds. The SPDR S&P Retail ETF (XRT), where Gap is a constituent, fell 2.1% on the day. The more significant impact is on the thesis for value-oriented apparel chains, which may lead to reduced weightings by active managers. Investors should monitor fund flows out of discretionary ETFs like XLY, which could see continued outflows if consumer data weakens further.

How does Dell's performance compare to previous AI-driven rallies?

Dell's 24.5% single-day gain is its largest since August 2023 but remains below the peak volatility seen during earlier AI hype cycles. For comparison, rival Super Micro Computer recorded a 35% single-day jump in January 2024 on an earnings beat. The magnitude suggests the market is pricing in durable demand, not just speculative fervor. Historical data shows that tech stocks sustaining gains of over 20% on earnings often continue to outperform the sector median for the subsequent quarter.

What is the historical context for such a large one-day drop for Gap?

A 28% single-day decline for a major retailer like Gap is a rare event, last seen during the March 2020 pandemic sell-off. Prior to that, a comparable drop occurred in May 2019 when Gap lost 16% after spinning off Old Navy. The severity of this move reflects a simultaneous guidance cut and a loss of confidence in the company's strategic turnaround plan. It places Gap's stock performance among the worst in the S&P 500 for the month of May 2026.

Bottom Line

Earnings results have cleaved markets into AI-infrastructure winners and consumer-facing losers, defining the Q1 2026 investment landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.