Markets
Nia Warfield, Luke Kawa

S&P 500 shakes off worst day since May with best day since May

All of Friday’s worries were seemingly washed away over the weekend, with the S&P 500 posting a 1.5% gain in a widespread rally. The Nasdaq 100 gained 1.9% and the Russell 2000 led the way with a 2.1% advance, with the small-cap index the lone one of the trio to completely erase Friday’s drop.

The benchmark US stock index rebounded from its worst day since May with its best day since May, and 10 of 11 sector ETFs finished higher on the session. Energy was the only holdout, while tech and communication services delivered the most upside.

Gains on the day were led by Idexx Technologies, which jumped 27% after the veterinary lab equipment maker reported better-than-expected Q2 earnings and revenue. On Semiconductor led S&P 500 decliners, falling 15.6% after the chipmaker met Q2 estimates but saw weak sales in its two largest business units: automative and industrial.

Tesla shares rose 2.2% after the company’s board approved an “interim” stock award of 96 million shares for CEO Elon Musk, valued at nearly $30 billion at Tesla’s Friday closing price.

Joby Aviation shares jumped nearly 19% after the air taxi company said it plans to acquire the helicopter ride-share business of rival Blade Air for up to $125 million.

Opendoor Technologies shares surged 17% after the online real estate company announced after the close on Friday that it won’t pursue a reverse stock split.

Wayfair shares jumped double digits after the online home retailer delivered a massive Q2 earnings beat and its best revenue growth, even amid a shaky housing market.

Trump Media & Technology Group rose as much as 2% in premarket trading before closing modestly lower after the owner of Truth Social and a swath of crypto assets unexpectedly dropped Q2 results Friday evening.

Outside of earnings…

American Eagle shares soared almost 24% after President Donald Trump praised the retailer’s hotly discussed new marketing campaign with actress Sydney Sweeney.

Spotify jumped 5% after the music streaming giant announced another round of premium subscription price hikes as the company tries to cue up more profits.

Nio shares fell 8% as fierce competition squeezed China’s EV market, with the electric automaker reporting a month-over-month drop in July sales.

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markets
Luke Kawa

Broadcom jumps after locking down Google as a customer for future generations of TPUs

Shares of Broadcom rose more than 3% in postmarket trading on Monday after its most important customer doubled down on the custom chip specialist’s ability to produce its most valuable commodity.

In a filing, Broadcom said that it entered into a long-term agreement with Google to supply future generations of TPUs (custom AI accelerator chips) as well as a supply assurance agreement for networking and other equipment “through up to 2031.”

Bernstein analyst Stacy Rasgon indicated that Broadcom’s investor relations team told him that Google’s long-term agreement “has revenue commitments that go along with it through the timeline.”

Gemini 3 launched to rave reviews in November. The model was trained on TPUs co-developed by Broadcom and Google.

The same Monday filing showed that Broadcom, Google, and Anthropic expanded a partnership that will see the Claude developer access 3.5 gigawatts of AI compute capacity beginning in 2027, powered by the TPUs co-designed by the custom chip specialist and the search giant.

Bernstein’s Rasgon added that Broadcom’s team suggested these 3.5 gigawatts are “only part of a larger partnership over time.” He thinks Broadcom’s fiscal year 2027 guidance for AI revenues of $100 billion “is looking increasingly light” thanks to this news.

For what it’s worth, the enhanced pact with Anthropic hinges upon the firm’s ability to afford AI compute. But based on the insane trajectory of its run-rate revenue that may not be a big hurdle to clear.

“Broadcom’s expanded agreements with Google and Anthropic add rare multi-year visibility, reinforcing a $40-$50 billion AI revenue opportunity tied to Anthropic’s 3.5 gigawatt deployment starting in 2027, while building on the previously disclosed 1GW ($10 billion) starting in 2H,” wrote Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada.

Luke Kawa
3h
Anthropic boasts revenue run rate of $30 billion as the Claude developer expands its partnership with Google and Broadcom

Anthropic’s revenue run rate is higher than the trailing 12-month revenues of all but 129 S&P 500 companies.

Anthropic Co-founder and CEO Dario Amodei
markets
Luke Kawa

Health insurers surge after Medicare agrees to pay 2.48% more in 2027, a bigger-than-expected boost

Health insurance stocks are surging after the Centers for Medicare & Medicaid Services said it plans to boost Medicare Advantage and Part D payments by 2.48% in calendar year 2027.

The likes of CVS, Humana, UnitedHealth, Molina Healthcare, Oscar Health, and Elevance Health are gaining in postmarket trading.

Wall Street analysts had anticipated that rates for 2027 would go up between roughly 1% and 1.5%.

These stocks had gotten crushed in late January when the Trump administration proposed relatively flat federal payment rates.

Insurance companies that provide government-sponsored plans, like Medicare Advantage, faced headwinds from higher-than-expected costs in 2025.

Luke Kawa, Tasha Matsumoto
8h
Stocks maintain gains after whipsawing as traders digest war updates

Stocks rose for the fourth consecutive session as traders vacillated between hopes for a ceasefire and fears of an escalation.

Bull kicks
markets
Matt Phillips

Iran war winners Dow, LyondellBasell downgraded by Bank of America

Dow, Inc. and LyondellBasell — two petrochemicals stocks that surged as markets priced in shortages due to the closure of the Strait of Hormuz — should decline as investors focus on the long-term outlook for normalized petrochemical prices once the war resolves, Bank of America analysts wrote in a note downgrading the two stocks Monday.

BofA moved its rating on the shares from “neutral” to “underperform,” writing:

“Over time, as chemical markets normalize, we expect 1) investor focus to shiſt back to ‘normal’ or ‘sustainable’ earnings profiles and 2) the conflict to resolve without material asset rationalization, both of which likely bias shares lower over the next twelve months.”

Analysts also lowered their stance on another petrochemicals and building materials stock, Westlake, to “neutral” from “buy.”

While cutting those ratings, BofA actually raised its more near-term price targets for the shares. It upped LyondellBasell to $68 from $55, and Dow to $35 from $31.

But those price targets still imply declines of more than 10% compared to where both shares were trading late Monday morning. Both stocks are up roughly 30% since the start of the Iran war.

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