The Nasdaq rallied 1.3% on Tuesday, buoyed by strength in Nvidia and other tech megacaps, while the Dow slipped as retailers weighed and investors waited for crucial inflation data due out this week.
Market Snapshot
The Dow Jones Industrial Average fell 299.05 points, or 0.76%, to 39,112.16, the S&P 500 gained 21.43 points, or 0.39%, to 5,469.30 and the Nasdaq Composite gained 220.84 points, or 1.26%, to 17,717.65.
Market Movers
Nvidia rose 6.8%, a day after the semiconductor company and leading maker of artificial-intelligence chips entered correction territory. A correction is defined as a drop of 10% or more off a recent end-of-day peak. Nvidia hit a record high last week of $135.58, which briefly made the chip maker the world’s most valuable company.
Rivian Automotive shares are surging in extended hours after the adventure EV-maker announced a joint venture deal with Volkswagen (VWAGY), crucially bringing in fresh capital into Rivian’s coffers. Irving, Ca.-based Rivian's shares were up over 40% in after hours trading.
FedEx Corp (NYSE:FDX) shares soared by more than 14% in afterhours trading after the company reported fourth-quarter earnings that surpassed Wall Street expectations and provided strong earnings forecast for fiscal 2025.
Shares of Trump Media & Technology Group gained 8.5%. The parent company of former President Donald Trump’s Truth Social Platform gained 21% on Monday, marking the second-largest percent increase since Trump Media’s merger with shell company, Digital World Acquisition Corp., in late March.
Airbus dropped 9.4% in Paris trading after the European plane maker said late Monday it expects to deliver about 770 jets and generate operating profit in 2024 of about €5.5 billion ($5.9 billion). The company previously had forecast 800 deliveries and an operating profit of between €6.5 billion and €7 billion. Shares of rival Boeing declined 2.2% in New York.
SolarEdge Technologies declined 21% after the company said it planned to offer $300 million in convertible senior notes due in 2029 in a private placement. Separately, SolarEdge said in a filing that PM&M Electric, a customer that owes SolarEdge about $11.4 million under a secured promissory note, recently filed for Chapter 7 bankruptcy.
Carnival rose 8.7% after the cruise operator swung to a profit in its fiscal second quarter and said it expects a blockbuster year for cruises in 2025. Norwegian Cruise Line Holdings rose 5.1% and Royal Caribbean was up 4%.
Pool Corp., a distributor of swimming-pool supplies, tumbled 8% after the company sharply reduced its earnings outlook for the fiscal year, citing “persistently weak demand for new pool construction” and discretionary pool spending that “continues to be hampered by the macroeconomic environment.”
Penn Entertainment dipped 5.6% after analysts at Raymond James cut their recommendation to Market Perform from Outperform. The analysts didn’t issue a price target.
Market News
Doordash held talks with UK's Deliveroo on takeover, sources say
U.S. meal delivery group Doordash flagged an interest in a takeover of Britain's Deliveroo last month, two people familiar with the matter told Reuters.
San Francisco-based Doordash made the approach to Deliveroo, but talks ended after disagreement on valuation, said one of the people, speaking on condition of anonymity because the matter is private. There are no talks ongoing, the person added.
OpenAI delays rolling out its 'Voice Mode' to July
ChatGPT maker OpenAI said on Tuesday that it was delaying the release of its "Voice Mode" feature by a month to July because of technical issues.
The company had originally planned to roll out the realistic voice conversation experience to a small group of ChatGPT Plus users in late June, but said it was delaying it because it needed time to reach its launch standard.
Trade US Stocks 24/5 with Tiger Trade!