SUPERNEWS

Top Movers

Fed Rate Cut Hopes Lift S&P, Nasdaq; AMD, MARA Surge

Intraday

By Bill Bullington

ᐧ

5/6, 13:33 EDT
Advanced Micro Devices, Inc.
Churchill Downs, Incorporated
Marathon Digital Holdings, Inc.
Medical Properties Trust, Inc.
Nucor Corporation
Virgin Galactic Holdings, Inc.
Tyson Foods, Inc.
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Key Takeaway

  • S&P 500, Nasdaq 100, and Dow Jones all rose by 0.6% and 0.3% respectively, driven by optimism over potential Federal Reserve rate cuts.
  • AMD shares surged 2.8% on AI and cloud computing prospects, while EyePoint Pharmaceuticals plummeted 39%, highlighting sector-specific volatility in the market.

Market Movements Amid Fed Speculation

The S&P 500 Index experienced a notable uptick, climbing 0.6% as of early afternoon in New York, buoyed by ongoing speculation around potential Federal Reserve rate cuts. This optimism was mirrored across major indexes, with the Nasdaq 100 and the Dow Jones Industrial Average also posting gains of 0.6% and 0.3%, respectively. The broader MSCI World Index matched this positive momentum, rising by 0.6%.

Tech and Healthcare: A Mixed Bag

In the technology sector, Advanced Micro Devices Inc. (AMD) saw its shares increase by 2.8% following an upgrade from Phillip Securities analyst Jonathan Woo, who cited the company's potential gains from artificial intelligence and cloud computing advancements. Conversely, the healthcare sector presented a more turbulent picture. EyePoint Pharmaceuticals (EYPT) shares plummeted by 39% after disappointing results from a mid-stage study, and Integra LifeSciences (IART) shares dropped 22% after cutting its full-year adjusted profit forecast.

Real Estate and Consumer Goods Feel the Pressure

The real estate and consumer goods sectors faced challenges, with Medical Properties Trust Inc. (MPW) shares declining by 7.6% amid bankruptcy filings by a key tenant, and Tyson (TSN) shares falling 7.5% due to various operational headwinds discussed during its earnings call. Nucor (NUE) also reported a decrease in consumer spot prices for hot rolled coil, leading to a 2.1% dip in its stock price.

Bright Spots in Entertainment and Digital Assets

Despite the mixed sectoral performance, there were notable bright spots. Churchill Downs (CHDN) shares gained 1.6% after announcing a record-setting Kentucky Derby, and Virgin Galactic Holdings (SPCE) shares soared by 11% following the announcement of a new system-integration facility for its Delta Class spaceships. Additionally, Marathon Digital Holdings (MARA) shares surged 19% after news of its inclusion in the S&P SmallCap 600.