Nia Warfield, Luke Kawa4/28/25

US stocks shake off early tech slump to finish flat

Monday was shaping up to be a reversal of last week’s price action, with markets trending deeply negative amid a retreat in the megacap tech names that had powered gains the prior week. But from 1:30 p.m. ET onward, a switch flipped and stocks ground higher, with the S&P 500 and Nasdaq 100 finishing virtually flat. The Russell 2000 outperformed with a 0.4% gain.

Consumer staples and tech were the lone S&P 500 sector ETFs to finish in the red; energy, real estate, and utilities were the top performers.

Pharma heavyweights AbbVie, Centene, and Gilead were among the S&P 500’s top movers, helping anchor the broader market. Nvidia shares, meanwhile, fell as much 4% after reports surfaced that Huawei is preparing an AI chip to challenge the tech giant’s blockbuster H100 GPU, but cut those losses in half by the close. Tesla did one better, fully erasing its losses of 4% to end positive.

Beaten-down hydrogen fuel cell company Plug Power spiked as much as 40% in Monday trading as investors cheered preliminary Q1 earnings results.

Domino’s shares slid in early trading after the pizza giant topped Q1 earnings but missed sales estimates — though the stock clawed back those losses by the close.

On Holding jumped higher after Citi said the trendy Swiss sneaker brand’s strong pricing power and loyal consumer base should help it outrun the threat of tariffs.

Bank of America slashed its price target on trucking firm Saia by nearly 50% after the company suffered its biggest stock drop on record on Friday, falling another 2% on Monday.

Elsewhere, Palantir has once again topped the S&P 500 leaderboard, with a nearly 30% surge this month pushing the defense and AI software giant back into contention for the index’s crown.

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Southwest became the third major airline to report its third-quarter earnings when it dropped its results after the bell Wednesday.

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Moderna drops after reporting trial for birth defect vaccine failed

Moderna dropped in after-hours trading Wednesday after it reported that its experimental vaccine for cytomegalovirus (CMV), which can cause birth defects, failed in a late-stage trial.

The company is perhaps best known for being tapped by the government to quickly develop a vaccine for COVID-19 in 2020, which remains its single source of revenue. Investors have been eager for signs that it will add more vaccines to its portfolio soon.

The CMV vaccine was the main product in Moderna’s pipeline prior to the COVID-19 pandemic. In the most recent results, the vaccine was only between 6% and 23% effective in blocking infection, which was “well below” the company’s target of at least 49%, the company said in a statement.

In statements announcing the results, Moderna’s leaders described the results at “disappointing.” The company fell more than 5% after-hours and is down more than 35% this year.

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US stocks tumble as momentum trades unwind, earnings disappoint

The S&P 500, Nasdaq 100, and Russell 2000 all ended Wednesday in the red.

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Carvana plunges as investors respond to another subprime lender’s bankruptcy filing

Used car retailer Carvana is plunging on Wednesday, with the stock on pace for its worst day since auto tariffs took effect in April.

Likely spooking investors is a fresh bankruptcy filing by PrimaLend, which specializes in financing for dealerships focused on subprime borrowers (customers with lower credit scores, typically below 600, as defined by Experian). The news follows last month’s bankruptcy filing by another subprime auto lender, Tricolor Holdings.

Carvana doesn’t appear to work directly with PrimaLend, but it does likely have significant exposure to subprime loans. According to a January report by Hindenburg Research, which was shorting Carvana, 44% of the loans Carvana packages into asset-backed securities (ABS) are classified as nonprime (601-660 credit scores). More than 80% of its recent nonprime ABS deals had average FICO scores in the “deep subprime” range, or the riskiest levels, according to the report. Carvana at the time called the report “intentionally misleading and inaccurate.”

Carvana has massive growth goals, saying earlier this year that it aims to sell 3 million retail units per year within 5 to 10 years. (Wall Street expects it to sell about 580,000 units this year.) Lower-income buyers could be a significant part of that growth.

Following Tricolor’s implosion last month, JPMorgan CEO Jamie Dimon said: “When you see one cockroach, there are probably more. Everyone should be forewarned on this one.” With investors pouring out of Carvana on Tuesday, it seems Wall Street isn’t taking that warning lightly.

There is likely also some momentum pullback baked into Carvana’s drop: the stock, which has been a favorite among retail traders, is still up 58% this year, even after Wednesday’s drop.

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