US stocks stage Herculean comeback to finish positive
US stocks started the session battered by a double whammy of negative economic news and concerns about AI demand.
At their lows of the morning, the S&P 500 and Nasdaq 100 were each down more than 2%. But stocks managed to hurdle those challenges over the course of the day and accelerated into the close, perhaps buoyed by month-end rebalancing activity.
When the dust settled, the S&P 500 and Nasdaq 100 ended in positive territory, while the Russell 2000 had a 0.6% decline.
It’s the biggest intraday loss the benchmark US stock index has erased to finish positive since October 13, 2022. That’s the day the bull market began.
Most S&P 500 sector ETFs rose, with healthcare, consumer staples, and industrials leading the way up. Energy was the massive laggard, tumbling 2.7%.
Some of the big gainers included Seagate, Trane, and Western Digital, all on earnings, which have generally surprised to the upside in a big way so far this reporting period.
But there were also some negative reports of note:
Norwegian Cruise Line shares sank after the cruise operator missed first-quarter estimates, as both ticket sales and onboard spending cooled.
Etsy shares slid nearly 6%, even after the craft-based online marketplace posted solid Q1 revenue, but swung to a loss after taking on charges from the sale of its instrument marketplace, Reverb.
Shares of Oddity Tech surged 30% after the AI-savvy beauty company delivered a standout Q1, easily topping expectations and skirting tariff fears.
Snap shares tumbled — despite beating analyst expectations yesterday — after the social media app warned that de minimis shipping changes may already be hurting its advertising business.
Shares of First Solar, the largest US manufacturer of solar panels and modules, fell about 8% after the company said it expects to pay up to $90 million in tariffs this year.
Starbucks slumped after posting a revenue and earnings miss along with a larger decline in same-store sales than analysts had penciled in.
Super Micro was the biggest sore spot on a sunny day, falling double digits after it released quarterly results that fell far short of expectations.
Shares of Jeep maker Stellantis and luxury giant Mercedes-Benz slipped after both automakers pulled their full-year guidance, citing volatility in trade policy.
