Chipmakers power stock gains
TSMC’s blowout earnings fueled a return to the AI trade.
The S&P 500 and Nasdaq 100 rose as TSMC’s blowout quarter, guidance, and capital expenditure plans lifted AI-adjacent stocks. The Russell 2000 rose 0.9%, outperforming the S&P 500 for the 10th consecutive session, the longest winning streak for small-caps since 1990.
Financials rose following earnings from Morgan Stanley, which beat earnings and revenue expectations, and Goldman Sachs, whose stock also rose as profit topped Wall Street’s estimates, though revenue came in below expectations. Energy was the worst-performing sector as President Trump’s softer position on Iran intervention sent energy stocks lower.
Stocks that moved higher:
Talen Energy soared after the Houston-based utility said it had bought power plants in the massive PJM exchange, which has seen rising consumer prices linked to AI infrastructure.
Clearway Energy surged after signing power purchase agreements with Alphabet.
Beyond Meat rose on its plans to enter the beverage category with a protein seltzer.
Healthcare stocks Oscar Health, Molina Healthcare, Centene, and UnitedHealthcare ticked higher as the ACA enrollment deadline arrived with Congress still at an impasse over subsidies.
US airlines Delta Air Lines, American Airlines, JetBlue, United Airlines, and Frontier Airlines climbed as oil plunged.
Stocks that moved lower:
Eli Lilly dipped after a report that FDA approval of its weight-loss pill is delayed to Q2. The pharma company was also in the news as a lawsuit from Strive Specialties, one of the largest compounding pharmacies in the country, accused Eli Lilly and Novo Nordisk of locking up telehealth companies they partner with in an effort to cut off businesses like them from the GLP-1 market.
Strategy fell as TD Cowen lowered its price target on the stock but maintained a “buy” rating.
