Markets
Luke Kawa

US stocks reverse big losses to end higher

US stocks erased deep losses on Friday to end a bad week with a decent gain.

The S&P 500 rallied 0.6%, the Nasdaq 100 gained 0.7%, and the Russell 2000 rose 0.4% on the session, all coming back from a deficit of more than 1%.

Financials were the worst-performing S&P 500 sector ETF; consumer discretionary also finished in the red. Utilities, energy, tech, and industrials paced gains.

Broadcom posted big gains after its strong earnings report and guidance. Walgreens Boots Alliance also jumped after the pharmacy chain agreed to be acquired by Sycamore Partners. And shares of Gap were up nearly 20% after the retailer delivered a huge increase in same-store sales.

In the wake of an earnings miss, Costco had its biggest one-day drop since about one year ago, back when it also reported underwhelming figures.

The woes for airline stocks continued, with Delta Air Lines, United Airlines, and American Airlines all finishing deep in the red.

Concerns that tariffs would raise the cost of Nintendo’s Switch 2 and hurt sales weighed on the stock.

HP Enterprise cratered after the data center equipment maker issued weak guidance.

Potbelly, a rare publicly traded sandwich maker, got carved up after saying same-store sales would shrink in the current quarter.

More Markets

See all Markets
>20%

The buy-the-dip bid from retail traders has been a massive market theme throughout 2025, and analysts at Jefferies have tried to quantify just how big of a footprint individual traders now have in US markets.

In a note published Tuesday, they wrote (emphasis added):

“Retail investors have become an increasingly relevant component of the US trading ecosystem, representing >20% of volume and even higher among names <$5. Growth in accounts, assets, and activity is reflected in the growth of Robinhood, Interactive Brokers, Charles Schwab, etc. A burgeoning product suite, expanded trading hours, and increased investor education support continued growth. Retail interest is here to stay; institutional investors should adjust their strategies accordingly.”

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

markets

JPMorgan said Marvell’s management told them their Microsoft and Amazon custom chip business is on track, contradicting other reports

The latest release from the Marvell Chipematic Universe is out:

JPMorgan analyst Harlan Sur hosted a meeting with Marvell Technology President and COO Chris Koopmans and Senior VP of Investor Relations Ashish Saran on Monday amid reports that the chip company was poised to lose business from its two biggest hyperscaler custom chip clients: Amazon and Microsoft.

Benchmark downgraded the company on Monday, citing a loss of Trainium3 and 4 business, while The Information said on Friday the latter was planning on shifting its business to Broadcom. Shares tumbled 7% on Monday, erasing all of its post-earnings bounce, and are down again on Tuesday.

The message communicated to Sur from Marvell is, in short, one of Vince Vaughn’s quotable lines in “Wedding Crashers”: “Erroneous! Erroneous on both counts!”

“At our meeting yesterday, the Marvell team reiterated securing purchase orders for all of CY26 for the next-gen Trainium 3 XPU ASIC program at AWS and that the Microsoft 3 nanometer Maia AI XPU ASIC program remains on track to ramp back-half of calendar year 2026 and into calendar year 2027,” Sur wrote in a note to clients on Tuesday. “Moreover, the team reiterated that they are already working on next-gen 2 nanometer XPU programs for both customers.”

The analyst maintained a $92 price target and “overweight” rating on the shares.

Sur added that Marvell’s management “remains perplexed/frustrated at all of the ‘noise’ in the market.”

This whole thing is starting to have the feel of a three- to four-episode subplot arc from HBO’s “Billions.”

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.