Top Movers

S&P 500 Hits Record High, Fueled by Major Deals and Forecasts


By Bill Bullington

5/15, 17:11 EDT
Chubb Limited
Cisco Systems, Inc.
AT&T Inc.

Key Takeaway

  • AST Spacemobile (ASTS) soared 33% after a deal with AT&T, and Chubb (CB) rose 5.9% on news of Berkshire Hathaway's $6.7 billion investment, driving the S&P 500 to a record high of 5,308.15.
  • Cisco (CSCO) gained 4.7% on strong sales forecasts, while Gates Industrial (GTES) dropped 3.4% amid Blackstone's share offering, highlighting market dynamics influenced by strategic moves and investor sentiment.

Record Highs and Strategic Moves

The S&P 500 Index closed at a new record high of 5,308.15, up by 1.2% on Wednesday, marking a significant milestone since its last peak in March. This surge in the index underscores a vibrant post-market trading session, characterized by strategic partnerships, notable investments, and optimistic forecasts.

Strategic Partnerships and Investments

AST Spacemobile (ASTS) saw an impressive 33% jump after announcing a pivotal "definitive commercial agreement" with AT&T for a space-based broadband network. This partnership not only highlights the growing interest in space technology but also underscores the potential for innovative communication solutions.

In another strategic move, Chubb (CB) shares increased by 5.9% following the revelation that Warren Buffett's Berkshire Hathaway has acquired a $6.7 billion stake in the insurer. This investment ended the prolonged speculation about Berkshire Hathaway's mysterious position in a financial firm, showcasing Buffett's confidence in Chubb's business model and future prospects.

Tech and Industrial Sector Movements

Cisco Systems (CSCO) experienced a 4.7% rise after releasing a promising sales and profit forecast for the current quarter. This positive outlook suggests a resurgence in investment in computer networks, possibly indicating a broader recovery in tech spending.

Conversely, Gates Industrial (GTES) faced a 3.4% decline as Blackstone offered 17.5 million shares of the manufacturer, with an offered range of $16.35 to $16.75 each. This move by Blackstone reflects the ongoing adjustments and realignments within the industrial sector, potentially impacting Gates Industrial's stock performance in the short term.