Luke Kawa1/16/25

Most US stocks rise, but megacap tech drags major indexes down

The S&P 500 inched lower on Thursday, the Nasdaq 100 had an ugly close to end down 0.7% at its low of the day, and the Russell 2000 eked out a small advance.

Today was the first time the S&P 500’s advance-decline line was above 250, but the benchmark index suffered a drop of 0.2% since July 11, which marked the start of a meaningful drawdown for megacap tech stocks.

Most S&P 500 sectors moved higher, but tech, communication services, and consumer discretionary — the sectors home to the Magnificent 7 cohort — all retreated. Every member of that group fell.

Apple had an awful day amid reports that it’s losing market share in China, its worst underperformance of the broad market since March. Tesla also stumbled, giving back a chunk of yesterday’s big gains.

UnitedHealth was the worst performer in the S&P 500 after posting disappointing earnings that saw net income drop significantly year on year.

Southwest Airlines slumped on the heels of a lawsuit from the Department of Transportation alleging that it “chronically delayed” flights.

On the bright side, TSMC jumped after posting robust earnings and a bright outlook for the year ahead.

Rivian jumped following a report that the electric-vehicle maker is set to receive billions in financing from the Biden administration. Uber also had a strong showing following some positive commentary from Wall Street analysts.

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Tasha Matsumoto

Stocks fall after new Fed Chair Warsh’s first policy meeting as traders worry about a rate hike

While the Fed left rates unchanged (as expected) a hawkish dot plot has traders bracing themselves for a rate hike this year.

Brown bear on a rock

Federal Reserve removes easing bias, policymakers see a hike as more likely than a cut this year

The knee-jerk move for stocks was to the downside.

Kevin Warsh closeup

markets

Figma rises on Citi’s Buy rating and $36 price target

Figma shares are rising moderately in pre-market trading after Citigroup initiated coverage with a Buy rating, saying demand tied to AI could help fuel the design software company’s next phase of growth, according to the note provided by Bloomberg.

Citi set a $36 price target on the stock and said Figma is well-positioned to offset AI disruption concerns through its own AI-driven consumption growth.

"Our proprietary customer and go-to-market (GTM) checks with hyperscalers and large financial services (FS) firms suggest strong seat upgrades & credit pack utilization, which offer positive reads on AI-monetization strategy," analyst Tyler Radke commented.

The company has been moving to roll out AI-native features in recent months, including developer-focused tools and in-house Figma agent aimed at making Figma a more central operating layer between product teams, engineers and AI systems.

Citi also pointed to upcoming product launches and potential monetization tied to Figma’s Model Context Protocol server which is an emerging framework that could allow AI systems to interact more directly with design environments.

Figma’s most recent earnings posted stronger-than-expected revenue growth while management raised its full-year guidance, saying that AI-related products were seeing encouraging adoption.

Still, the company that went public in 2025 has faced intense pressure with stock tumbling more than 50% this year-to-date over fears that automated AI code-generation tools and design alternatives from competitors like Anthropic might squeeze the need for seat-based design software.

Tasha Matsumoto

Semiconductors slump, dragging down stocks

The S&P 500 and Nasdaq 100 fell as chip stocks and AI-linked names lost steam. Oil prices slid on the prospect of the Strait of Hormuz reopening.

Grizzly bear growling USA.

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Paige Oamek6/16/26

Lionsgate closes higher on Netflix acquisition rumor, streaming giant denies report

Shares for the film production company Lionsgate soared on Tuesday following rumors of a potential buyout.

According to a person familiar with the possible merger and acquisitions deal, streaming giant Netflix is one of the companies that may be interested in buying Lionsgate Studios, per reporting by Semafor. A Netflix spokesperson denied the rumor to Deadline.

Neither Lionsgate nor Netflix confirmed the news, but nevertheless the stock climbed, closing up 14%. The stock fell 4.6% in premarket trading after Netflix denied the rumor.

Netflix closed lower on news that Fox will acquire Roku in an approximately $22 billion deal after it was also rumored that the streaming company was interested in that acquisition. “Netflix did not make a bid for Roku,” a spokesperson told Semafor. This comes after Netflix withdrew its buyout bid for Warner Bros. Discovery earlier this year.

Lionsgate’s shares are up 77% since January. Lionsgate owns massive franchises like “John Wick” and “The Hunger Games.” The film company has a market cap of approximately $4.7 billion, making it roughly 5x smaller than Roku and 13x smaller than Warner Bros.

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