Top Movers

Berkshire's Big Bet on Chubb Ignites 4.3% Surge


By Bill Bullington

5/16, 14:01 EDT
AMC Entertainment Holdings, Inc.
Advanced Micro Devices, Inc.
Chubb Limited
Cisco Systems, Inc.
Grab Holdings Limited
Intel Corporation
Walmart Inc.

Key Takeaway

  • AMD and Chubb lead market gains with increases of 3.2% and 4.3%, buoyed by positive investor sentiment and a significant Berkshire Hathaway investment, respectively.
  • Meme stocks GameStop and AMC see sharp declines of 23% and 12%, highlighting the volatile nature of social media-driven investments amidst broader market anticipation of Fed cues.

Market Movements Amid Fed Anticipation

The U.S. stock market exhibits a calm demeanor with the S&P 500 Index, Nasdaq 100, and Dow Jones Industrial Average showing minimal changes. This tranquility comes as investors await insights from upcoming Federal Reserve officials' speeches, hoping to glean further understanding of the economic outlook. Meanwhile, the MSCI World Index enjoys a notable ascent, reaching a new pinnacle with a 1.1% increase.

Highlights from Today's Movers

In today's trading session, a diverse array of companies have captured investors' attention, showcasing the dynamic nature of market sentiment and investor reactions to corporate developments and external analyses.

Tech and Insurance Lead Gains

Advanced Micro Devices (AMD) enjoys a 3.2% uplift after earning a spot on the Wolfe Alpha List, signaling a positive shift in investor sentiment towards the semiconductor company. In the insurance sector, Chubb (CB) sees a 4.3% surge following the revelation of a substantial $6.7 billion investment by Warren Buffett's Berkshire Hathaway, underscoring the value seen in Chubb's operations and future prospects.

Challenges and Opportunities

While some companies face headwinds, others find opportunities to shine. Cisco Systems (CSCO) experiences a 2.6% dip as its 2025 outlook is deemed conservative by analysts, reflecting concerns over its growth trajectory. Conversely, Grab Holdings (GRAB) and Intel (INTC) both register gains, with Grab beating revenue estimates and Intel receiving an upgrade from Wolfe Research, highlighting the potential for recovery and growth in their respective sectors.

Meme Stocks and Sectoral Shifts

The narrative around meme stocks such as GameStop (GME) and AMC Entertainment Holdings (AMC) shifts, with both stocks declining as the initial frenzy wanes, marking a 23% and 12% drop respectively. This movement underscores the volatile nature of stocks propelled by social media and retail investor enthusiasm. Meanwhile, sectors like pet insurance see a boost, with Trupanion (TRUP) jumping 19% after an upgrade from BofA, and Walmart (WMT) impresses with a 6.8% increase following robust first-quarter results and optimistic full-year projections.