Markets
Luke Kawa
3/6/25

Train wreck in momentum stocks drags S&P 500 sharply lower

The S&P 500 was down 1.8%, the Nasdaq 100 gave back 2.7%, and the Russell 2000 dropped 1.6% on Thursday.

Temporary tariff relief, with President Trump delaying levies on most Canadian and Mexican imports until April 2, was no panacea for the stock market.

Momentum stocks have fallen and they can’t get up.

The iShares MSCI USA Momentum Factor ETF tumbled 3.9% on the day, and has now had its fastest retreat from all-time highs since the first quarter of 2021.

Palantir Technologies fell double digits and was the worst performer in the S&P 500. The Magnificent 7 all declined, punctuated by losses of more than 5% in Tesla and Nvidia after retail traders piled into the names the previous day.

Chip designer Marvell Technology tanked almost 20% after reporting lukewarm earnings and guidance after the close on Wednesday.

General Motors, Ford, and Stellantis all fell as Bank of America warned that a one-month reprieve from tariffs isn’t too helpful.

Hims & Hers sank nearly 16% on the heels of a court ruling that further dims the outlook for its copycat weight-loss drug sales.

Off-price retailer Burlington Stores soared after posting better-than-expected earnings and same-store sales.

Victoria’s Secret slumped after its first-quarter guidance disappointed.

A cracking sales beat from Cracker Barrel propelled shares 7% higher.

More Markets

See all Markets
markets
Luke Kawa

Crocs rises on new marketing campaign for HeyDude brand starring Sydney Sweeney


Sydney Sweeney has great... feet?

Shares of Crocs are rising after the footwear company’s HeyDude brand unveiled a new marketing effort starring actress Sydney Sweeney for its Austin Lift shoe line.

Sweeney’s controversial ad campaign for American Eagle spurred a massive jump in the denim-maker’s shares, caught the attention of the president, and prompted “an uptick in customer awareness, engagement, and comparable sales,” per AEO’s management.

Sweeney was first announced as HeyDude’s global spokesperson in August 2024, and doesn’t seem to have given the brand a major boost so far.

Max Knoblauch
4h

Ford and GM reach 52-week highs as EPA seeks to repeal emissions rules

Shares of Ford and GM are each trading at 52-week highs on Friday, as investors pile into gas-powered US automakers with the looming end of the EV tax credit and the Trump administration’s potential repeal of vehicle emissions standards.

A lobby representing Ford, GM, and nearly all other major automakers has expressed support for the EPA’s proposal to repeal the long-standing endangerment finding that declared greenhouse gases a threat to human life. The finding provides the legal foundation for the EPA to regulate vehicle emissions.

Yesterday, EV giant Tesla urged the Trump administration to keep the standards in place.

Friday afternoon saw Ford shares reach their highest level since July 2024, while GM’s stock hit highs not seen since January 2022.

Citi equity analysts on the key valuation issue facing the market.

Citi’s US market analyst on the key valuation test facing the market

“It kind of comes down to, what inning do you think we are in this AI game?”

Matt Phillips6h
markets
Luke Kawa

GameStop surges as company offers promotions to boost launch of “Pokémon” Mega Evolution set

GameStop is jumping as the company offers promotions to boost interest for today’s North American launch of the Mega Evolution set of the “Pokémon Trading Card Game.”

Options activity is a little more tilted to the bull side than usual. Over the past month, a little less than four calls have changed hands for every put option. As of 10:22 a.m. ET, that ratio is over five to one.

It’s a big day for collectibles fans and gamers alike: beyond the “Pokémon TCG” drop, there are also new collections from “Yu-Gi-Oh!” and “Magic: The Gathering” being released and “EA SPORTS FC 26,” as well.

As we’ve written, “Pokémon” trading cards have been skyrocketing in value, and GameStop’s collectibles business has been accelerating. These are two sides of the same coin.

Mega Gardevoir... here I come!

markets
Matt Phillips

IREN slips after JPM gives the stock its only “sell” rating

Bitcoin miner and AI compute power provider IREN slumped in early trading after JPMorgan analyst Reggie Smith cut his rating on the stock to “underweight” from “neutral,” citing downside risks for the stock after a rally that carried it up 100% over the last month and some 600% over the last six months.

Smith is the lone member of the sell side with an “underweight” (equivalent to a “sell”) rating, per Bloomberg.

“We estimate shares are pricing in a >1 GW colocation deal, which would be a deal of record scale and capex (>$10 billion), which is possible over time, but for now, creates more downside risk in shares than upside potential,” he wrote, as quoted by Bloomberg.

He set a price target of $24, which is both 50% higher than his previous target but also 48% below where the shares closed on Thursday.

Smith is the lone member of the sell side with an “underweight” (equivalent to a “sell”) rating, per Bloomberg.

“We estimate shares are pricing in a >1 GW colocation deal, which would be a deal of record scale and capex (>$10 billion), which is possible over time, but for now, creates more downside risk in shares than upside potential,” he wrote, as quoted by Bloomberg.

He set a price target of $24, which is both 50% higher than his previous target but also 48% below where the shares closed on Thursday.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.
©2025 Sherwood Media, LLC