Luke Kawa1/6/25

US stocks rise on narrow, tech-centric rally

The S&P 500 rose 0.6% and the Nasdaq 100 gained 1.1% while the Russell 2000 was virtually flat on Monday.

New year, same megacap tech AI trade. Tech and communication services were far and away the best-performing S&P 500 sector ETFs; utilities and real estate each recorded losses in excess of 1%. The Magnificent 7 cohort booked back-to-back gains of at least 1.5% for the first time since the immediate aftermath of the US election.

Foxconn’s quarterly report sent shares of semiconductor companies soaring after the electronics-assembly firm credited its sales boost to higher demand for AI servers. Micron jumped double digits, while Super Micro Computer, TSMC, Nvidia (which closed at a record high!), and AMD all gained more than 3% on the day.

MicroStrategy rose as bitcoin reclaimed the $100,000 mark and the company announced plans to add to its crypto stockpile.

Plug Power recorded a huge gain amid positive reports around a tax incentive that could boost demand for one of its products.

FuboTV more than tripled after agreeing on a joint streaming venture with Disney and settling litigation with media giants that will see the company receive $220 million in cash.

Palantir tumbled as Morgan Stanley reaffirmed its bearish view on the stock, suggesting a drop of about 25% could be in the works.

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Western Digital rallies as Wall Street sees more gains ahead

Analysts responded to yesterday’s Western Digital earnings by rapidly ramping up price targets.

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December rate cut odds creep lower with Federal Reserve hawks out in full force

A cacophony of hawkish commentary.

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Gene-editing stocks rally on Bloomberg report that FDA plans to fast-track approval process

Shares of biotechs working with gene-editing treatments rose after the industry’s top regulator told Bloomberg News that the Food and Drug Administration plans to publish a paper in early November outlining the agency’s new, faster approach to approving those treatments.

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Amazon pulled off its monster quarter despite being left out of OpenAI’s tangle of deals

Amazon’s AWS revenue grew 20% year on year, and will hit $125 billion in capex for the year. CEO Andy Jassy said the 14,000 jobs cut weren’t about money, but about “culture.”

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Getty Images shares moon on licensing deal with Perplexity

Getty Images soared Friday after announcing a multiyear licensing deal with AI search company Perplexity AI. Reuters reports:

“Under the agreement, Perplexity will integrate Getty’s API technology into its AI platform workflows, enabling users to access premium visuals while improving image attribution. The collaboration is part of a wider trend of digital platforms signing licensing deals with AI content providers to expand content access while respecting intellectual property rights and generating revenue.”

Getty was up as much as 85% in the premarket trading session, but those gains are quickly dropping as holders rush to dump the stock, which has been a truly disastrous long-term trade.

In fact, Getty has had a pretty bizarre ride since it returned to the public markets on July 25, 2022, as part of a SPAC deal — in a previous life it had been publicly traded before being taken private in 2008. Within days of its return, Getty became a minor meme stock, spiking more than 250% before crashing a couple months later.

Since then, the stock’s trajectory has been abysmal. Prior to the announcement of the Perplexity AI deal on Friday, it was down 80% from its trading debut. No wonder people are trying to get out fast.

At last glance, those 85% gains in the premarket have been swamped by sellers, shrinking today’s gain for Getty down to 17%.

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