Top Stock Movers Now: Enphase Energy, T-Mobile US, Jabil, and More
U.S. equities edged lower at midday as investors continued to digest the fighting in the Middle East.
Solar stocks plunged as the Senate kept the full phaseout of clean-energy tax credits.
Jabil stock surged to a record high and led S&P 500 gainers after the circuit board maker's results topped estimates and it lifted its outlook.U.S. equities declined at midday as investors continued to digest the fighting in the Middle East. The Nasdaq, Dow Jones Industrial Average, and S&P 500 all edged lower.
Shares of solar companies Enphase Energy (ENPH) and First Solar (FSLR) led S&P 500 decliners after the Senate maintained the full removal of clean-energy tax credits in the budget bill. SunRun (RUN) and SolarEdge Technologies (SEDG) shares also plummeted.
T-Mobile US (TMUS) stock dropped on a report that SoftBank Group sold shares of the telecommunication firm's shares worth $4.8 billion.
Jabil (JBL) stock surged to a record high and led S&P 500 gainers after the circuit board maker's results topped estimates and it lifted its outlook.
Verve Therapeutics (VERV) shares surged after Eli Lilly (LLY) announced that it would acquire the gene-editing startup for about $1.3 billion.
Oil futures rose 2%. Gold futures fell. The yield on the 10-year Treasury note was lower. The U.S. dollar gained ground against the euro, yen and pound. Most major cryptocurrencies were lower.
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Yahoo
24 minutes ago
- Yahoo
The 5 arguments against continued dominance for AI stocks
AI stocks have surged since November 2022, with Nvidia up 761% and Palantir more than 600%. But some experts warn of high valuations and potential overestimation of AI's economic impact. Geopolitical risks, like China-Taiwan tensions, could also disrupt the AI supply chain. Since November 2022, artificial intelligence stocks have been the place to be in the market. Nvidia is up 761% over that time. Palantir is up 604%. Taiwan Semiconductor has returned 165%. And Microsoft is up 88%. It's been a gold rush. But how long can the AI trade last? Some experts, like Morgan Stanley's Head of Global Research Katy Huberty, have said that we're still in the early innings of the technology and robust returns still lie ahead. Few seem to refute the idea that AI will transform the US economy to some degree and be an eventual boon for profits. But some have urged caution about investing in the theme after such a huge run of outperformance. Irrational exuberance and greed are running rampant, they worry, potentially setting AI stocks up for a spectacular bust somewhere down the line. While the outlook on the technology's role in the economy is bullish, there are some threats to AI's dominance in the stock market. Five of them are detailed below. Generally speaking, AI stocks are expensive with their prices relative to their earnings over the last 12 months at elevated levels. For example, the iShares Future AI & Tech ETF (ARTY) has an average trailing 12 months PE ratio of 35.2, and the The Technology Select Sector SPDR Fund (XLK) is trading at 36.7 times earnings. Nvidia trades at a 45 PE ratio. By comparison, the S&P 500, which is at historically expensive levels, has a 23.7 PE. While AI stocks may have stronger growth prospects than those in other industries, high valuations mean those prospects are already priced in. If actual earnings performance underwhelms compared to expectation, then the stocks could start to underperform. High valuations tend to weigh on long-term performance. For example, Microsoft traded at 72-times trailing earnings in 2000. While it went on to lead the way in internet technology, it didn't recover its 2000 highs until 2016. AI may make tasks more efficient, but perhaps not to the degree the market thinks, said Jim Covello, head of Global Equity Research at Goldman Sachs, in a June 2024 report. "People generally substantially overestimate what the technology is capable of today. In our experience, even basic summarization tasks often yield illegible and nonsensical results," Covello wrote. "This is not a matter of just some tweaks being required here and there; despite its expensive price tag, the technology is nowhere near where it needs to be in order to be useful for even such basic tasks," he continued. "And I struggle to believe that the technology will ever achieve the cognitive reasoning required to substantially augment or replace human interactions." This could hurt AI firms, which are pumping hundreds of billions into building out AI infrastructure. What if, in the end, the mammoth spending isn't worth it? Another risk is that you end up investing in the wrong stocks altogether. Just because certain stocks are pioneering a technology, doesn't mean that they will continue to do so. The presumption five years ago "would have been that Intel would be the dominant player" in the AI space, Research Affiliates Founder Rob Arnott told BI in November. "Well, Intel is teetering perilously close to irrelevance, and Nvidia wasn't on anyone's radar screen five years ago. So disruptors get disrupted." As foreign investors start to pull back from US Treasury bonds amid an expanding national debt, and as tariffs and Trump's tax cut bill threaten to boost inflation, long-term Treasury yields are trending upward. When long-end yields go too high, it has historically hurt growth stock performance and brought down valuations. Higher-risk free yields start to attract money, and risky and expensive stocks start to lose their luster. One of the key players in AI development is chipmaker Taiwan Semiconductor. If China were to invade Taiwan, as it has threatened, the AI supply chain could be severely interrupted. "The moment conflict starts in the Taiwan Strait, you have to assume that TSMC shuts down very, very quickly regardless of what any of the players decide to do — regardless of whether anyone decides to disrupt the supply chain or destroy this or that or not," said Chris Miller, author "Chip War," in an interview with BI last year. "Taiwan imports a big chunk of its energy and chip factories need energy. And there are a bunch of critical chemicals and materials that are imported into Taiwan, and those would stop," he continued. "What's more, you couldn't get the ships out of Taiwan if there was a shooting war going on. And so your incentive to produce a lot also declines very rapidly if you can't actually sell chips or get them off-island." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
JBL Q2 Deep Dive: AI Infrastructure Drives Strong Growth Amid Mixed End Market Trends
Electronics manufacturing services provider Jabil (NYSE:JBL) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 15.7% year on year to $7.83 billion. On top of that, next quarter's revenue guidance ($7.45 billion at the midpoint) was surprisingly good and 4.2% above what analysts were expecting. Its non-GAAP profit of $2.55 per share was 9.8% above analysts' consensus estimates. Is now the time to buy JBL? Find out in our full research report (it's free). Revenue: $7.83 billion vs analyst estimates of $7.04 billion (15.7% year-on-year growth, 11.2% beat) Adjusted EPS: $2.55 vs analyst estimates of $2.32 (9.8% beat) Adjusted EBITDA: $652 million vs analyst estimates of $566.3 million (8.3% margin, 15.1% beat) Revenue Guidance for Q3 CY2025 is $7.45 billion at the midpoint, above analyst estimates of $7.15 billion Management raised its full-year Adjusted EPS guidance to $9.33 at the midpoint, a 4.2% increase Operating Margin: 5.1%, up from 3.9% in the same quarter last year Market Capitalization: $19.41 billion Jabil's second quarter saw a strong positive reaction from the market, as the company delivered above-consensus results fueled by robust demand in its Intelligent Infrastructure segment. Management highlighted that growth was propelled by accelerated spending in AI-related cloud and data center infrastructure, as well as solid contributions from capital equipment and warehouse automation. CEO Mike Dastoor credited the company's regionalized manufacturing model and increased U.S. footprint for helping Jabil navigate ongoing geopolitical and supply chain complexities. Looking ahead, Jabil's outlook is anchored by continued strength in AI and data center infrastructure, which management believes will more than offset ongoing softness in electric vehicle and renewable energy markets. The company is investing $500 million to expand its U.S. manufacturing capacity, aiming to support both existing and new hyperscale customers. CFO Greg Hebard noted that this expansion is expected to sharpen Jabil's competitive edge and drive sustained growth, while management continues to focus on disciplined capital allocation and steady margin improvement. Management attributed the quarter's outperformance to exceptional execution in AI hardware, cloud infrastructure, and operational discipline, while noting that end market demand varied across segments. AI-driven infrastructure growth: The Intelligent Infrastructure segment experienced rapid expansion, with management citing demand for advanced server rack integration, power, and cooling systems to support AI workloads. Jabil's ability to scale design and engineering for hyperscale data centers was a primary driver of the segment's performance. Capital equipment momentum: Robust activity in automated testing equipment—driven by increased complexity in custom chips for AI—contributed meaningfully to growth. Management said the need for advanced testing gear remains strong, although some sub-segments like wafer fab equipment lagged due to weaker automotive and consumer demand. U.S. manufacturing investment: Jabil announced a $500 million commitment to a new Southeastern U.S. site, which will further localize production and expand capacity for AI data center infrastructure. This facility is expected to open by mid-2026, with management emphasizing its role in diversifying the customer base and supporting expanded solutions like liquid cooling. Mixed regulated industry trends: While healthcare showed promising results, management acknowledged ongoing softness in electric vehicle and renewable energy end markets. They are closely watching potential impacts from U.S. legislation and are managing these headwinds through selective customer engagement and cost discipline. Operational leverage and cost control: Improved inventory management and lower capital expenditures, following divestitures, contributed to strong free cash flow. CFO Greg Hebard reaffirmed the company's intent to return most of this cash to shareholders through share repurchases, underscoring a shift to a more asset-light, efficient operating model. Jabil's guidance reflects optimism around AI infrastructure demand, ongoing operational improvements, and a cautious stance on weaker markets such as EVs and renewables. AI and data center strength: Management expects the Intelligent Infrastructure segment, particularly AI and cloud data center projects, to continue driving growth. CEO Mike Dastoor emphasized that ongoing customer demand for complex integration, power management, and cooling solutions remains robust, with additional upside possible as new technologies like liquid cooling mature. U.S. capacity expansion: The new $500 million U.S. facility is designed to support both existing and new customers, with an eye on scaling solutions across the AI ecosystem. Management believes this investment will help diversify revenue streams and enhance Jabil's competitive positioning, though the financial impact will materialize over several years. End market caution and risk management: Ongoing softness in electric vehicle and renewable energy markets remains a headwind, with no near-term turnaround expected. Management is taking a conservative approach to guidance for these segments and is focused on healthcare and digital commerce as longer-term growth drivers. In future quarters, the StockStory team will be monitoring (1) execution of the new U.S. facility buildout and its effect on customer wins, (2) the pace of AI and data center infrastructure demand as new technologies like liquid cooling roll out, and (3) stabilization or recovery in lagging end markets such as EVs and renewables. Progress in healthcare and automation will also be key indicators of Jabil's ability to diversify growth. Jabil currently trades at $199.78, up from $181 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
25 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq slide as Trump calls for 'unconditional surrender' from Iran
US stocks slipped on Tuesday amid dwindling hopes for a quick resolution to Israel-Iran hostilities, as President Trump heightened his rhetoric against Iran and called for an "unconditional surrender." In a post on Truth Social, Trump said the US knows where the country's leader is hiding, adding, "He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin." Stock losses picked up steam shortly following the post. The Dow Jones Industrial Average (^DJI) ended the day down around 0.7% or about 300 points. The benchmark S&P 500 (^GSPC) dipped more than 0.8% while the tech-heavy Nasdaq Composite (^IXIC) pulled back over 0.9%. Overall, US stocks have so far proved relatively resilient amid the conflict. The major gauges ended higher on Monday after a report that Iran sought a ceasefire and a return to nuclear program negotiations. But new reports on Tuesday indicated that the US is contemplating military strikes against Iran as Trump met with his national security team at the White House, heightening concerns about the possibility of a full-scale regional conflict. Oil prices jumped over 4% as investors weighed the stream of remarks and reports, with Brent futures (BZ=F) settling above $76.50 a barrel and West Texas Intermediate (CL=F) crude hitting nearly $75. At the same time, Wall Street is also grappling with concerns over Trump's trade policy and the direction of US interest rates. As the date for lifting the pause on Trump's sweeping tariffs approaches, US officials have used the G7 summit to pursue trade deals. The first completed deal emerged Monday, when Trump and British Prime Minister Keir Starmer signed off on the US-UK trade pact agreed in May. So far, other deals have proved elusive. Read more: The latest on Trump's tariffs Meanwhile, in the week's key data release, US retail sales fell 0.9% in May, more than economists expected, as consumers pulled back from a pre-tariff splurge. Wall Street is looking to the Federal Reserve's two-day meeting that starts on Tuesday for clues to whether policymakers still want to cut interest rates twice in 2025, given recent signs of cooling inflation. The Fed is expected to hold rates steady in its decision on Wednesday. US stocks slipped on Tuesday amid dwindling hopes for a quick resolution to Israel-Iran hostilities, as President Trump heightened his rhetoric against Iran and called for an "unconditional surrender." Stock losses picked up steam shortly following the post. The Dow Jones Industrial Average (^DJI) fell around 0.87, or about 300 points. The benchmark S&P 500 (^GSPC) dipped more than 0.8% while the tech-heavy Nasdaq Composite (^IXIC) pulled back over 0.9%. The Energy (XLE) sector was the lone S&P 500 sector in the green on Tuesday, rising about 1% as oil prices once again picked up. Oil prices jumped over 4% as investors weighed the stream of remarks and reports, with Brent futures (BZ=F) settling above $76.50 a barrel and West Texas Intermediate (CL=F) crude hitting nearly $75. The "FOMO" trade is alive and well in markets once again. Recent IPOs, like stablecoin issuer Circle (CRCL) and AI cloud company CoreWeave (CRWV), have both seen their stocks rise more than 100% since going public. Shares of nuclear energy company turned AI play Oklo (OKLO) are up more than 70% in the past month. Quantum Computing (QUBT) shares are up more than 56% in the past month, and others in the space have also ripped higher. "The commonalities are they're speculative," Interactive Brokers chief markets strategist Steve Sosnick said in an interview. "They're momentum-driven, and they almost always have some sort of tech veneer to them." With the S&P 500 (^GSPC) back near record highs, the common pillars of the current three-year bull market have clearly returned in markets. Two of the most popular AI trades, Palantir (PLTR) and Nvidia (NVDA), are back to trading near all-time highs. "It's kind of a freight train," Sosnick said. "Remember one of the great adages, 'the trend is your friend'? Well, people seem to be doing very well by following trends." Read more here. Oil prices jumped over 3% as investors assessed the latest Israel-Iran hostilities and digested a stream of remarks and reports in afternoon trade. According to Axios, the US is contemplating military strikes against Iran, heightening concerns about the possibility of a full-scale regional conflict. Brent futures (BZ=F) settled above $76.50 a barrel and West Texas Intermediate (CL=F) crude hit $75. Stock losses accelerated in mid-afternoon trading on Tuesday as President Trump heightened his rhetoric against Iran and called for an "unconditional surrender." In a post on Truth Social, Trump said the US knows where the country's leader is hiding, adding, "He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin." The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.5%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back around 0.5%. In the latest in a string of signs that market sentiment has recovered significantly from the heigh of April's tariff turmoil, Bank of America's June Global Fund Manager's Survey showed 66% of investors said they believe the global economy will achieve a "soft landing," in which inflation falls to the Fed's 2% target without an outright downturn in economic activity. The 8-month high among respondents believing a soft landing is in sight, comes as recession probabilities have tumbled over the past month while consumers worst fears about a tariff-driven inflation spike have also subsided. Bank of America Global Research chief investment strategist Michael Hartnett wrote the survey showed, "investor sentiment back to pre-Liberation Day 'Goldilocks bull' levels." Yahoo Finance's Ines Ferré reports: Read more here. JetBlue's (JBLU) stock declined more than 3% on Tuesday after the company revealed plans to further reduce costs and scale back flights. Yahoo Finance's Brooke DiPalma reports: Read more here. A prolonged conflict between Israel and Iran may do more than rattle energy markets. One argument on Wall Street is that it could push the Federal Reserve to cut interest rates sooner than expected. "A sustained rise in oil prices could cause the Fed to strike a more dovish tone," Oxford Economics chief US economist Ryan Sweet wrote in a recent note to clients, arguing that an extended oil shock could dent demand and potentially spill over into an otherwise resilient labor market. That's because, historically, sudden spikes in oil prices tend to cause only a temporary rise in inflation that the Fed usually overlooks. But with the economy already softening, a persistent surge could pose a bigger threat to growth and jobs than to inflation itself. "The economy has slowed and is vulnerable to anything else going wrong, including a sudden and persistent increase in oil prices," Sweet said. "If the Fed views the hit to the economy and the labor market as greater than the temporary boost to inflation, the central bank could signal that it's open to cutting interest rates sooner." On Tuesday, oil prices rallied, with international benchmark Brent (BZ=F) rising above $75 a barrel after President Trump called for Tehran residents to evacuate and rebuffed the idea of an Israel-Iran ceasefire. That contrasted with optimism on Monday, when the Wall Street Journal reported that tensions between Iran and Israel had eased, sparking a rally in US equities and stabilizing crude oil prices following last week's biggest price surge in three years. Sweet, whose baseline forecast is that the Fed will deliver its first rate cut in December, noted it may take weeks before markets gain a clearer sense of the direction of oil prices. Read more here. Solar stocks were pummeled in early afternoon trading after the Senate's version of President Trump's tax and spending bill showed that Republicans are united in eliminating tax credits for clean energy. The Senate's changes to the bill, released on Monday, called for a total phaseout of solar and wind credits by 2028, prompting the sell-off in solar names. Meanwhile, the revisions extended tax incentives for hydropower, nuclear, and geothermal energy until 2036, boosting shares of Sam Altman-backed nuclear energy startup Oklo (OKLO) and other energy names that are seen as winners. Read more about what the Senate's budget blueprint means for business. Yahoo Finance's Dan Howley and Alexis Keenan report: Read more here. US stocks slid on Tuesday as President Trump played down the prospect of a truce between Israel and Iran and retail sales came in below expectations. The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back 0.3%. Kraft Heinz (KHC) stock edged higher after the maker of Kool-Aid and Jell-O said it's eliminating synthetic dyes across the remaining 10% of its US portfolio that contains them. Yahoo Finance's Brooke DiPalma reports that Kraft Heinz will replace artificial dyes with natural colors or reinvent items with new colors. The company will also refrain from launching new products that contain food additives. This announcement comes amid growing scrutiny of food additives. Health and Human Services Secretary Robert F. Kennedy Jr. has said he wants to remove artificial coloring from the food supply by the time he leaves office. Read more here. The US Department of Defense announced Monday that it awarded OpenAI ( a $200 million contract to "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains." "This contract is one of the largest Department of Defense contracts given to a software provider when measured by annual contract value," William Blair analyst Louie DiPalma wrote in a note to clients Monday. DiPalma said that the "contract announcement could signal increased competition from OpenAI going forward" for Palantir (PLTR) "if OpenAI moves into Palantir's ontology territory." Ontology refers to an operational layer in Palantir's platform. DiPalma noted that Palantir paved the way for OpenAI and others. "Palantir has pioneered software providers serving as prime contractors for Department of Defense programs," DiPalma wrote. "Traditionally, software providers served as subcontractors to systems integrators. Under the new administration, the Department of Defense is looking to contract directly with commercial software providers when possible." Palantir rose less than 1% on Tuesday. In December, Palantir shares dropped as much as 5% when defense tech firm Anduril ( announced a partnership with OpenAI to "develop and responsibly deploy advanced artificial intelligence (AI) solutions for national security missions." Retail sales fell in May, dragged down by declines in gas and auto purchases during the second month that a wide array of President Trump's tariffs were in effect. Headline retail sales declined 0.9% in May, surpassing economists' expectations for a 0.6% decline month on month. By comparison, sales decreased 0.1% in April, according to revised Census Bureau data. A 2% decline in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials drove the May headline number lower. There was some positive news in the release: The control group in Thursday's release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.4%. That compares with a 0.1% decrease seen in April. Economists expected a 0.3% increase. May sales, excluding auto and gas, declined 0.1%. Economists had expected a 0.3% rise. In April, sales excluding auto and gas rose 0.1%. Reddit stock (RDDT) rose roughly 5% in premarket trading on Tuesday following the social media platform's release of new AI ad tools at the Cannes Lions festival for marketers on its platform. Meanwhile, broader S&P 500 futures (ES=F) fell by 0.3%. The gain follows Reddit's 6.8% jump Monday, after media reports spotlighted a recent analysis from data analytics firm Semrush, showing that Reddit is the second most cited website in Google AI overviews. 'Reddit may also perform well because Google has a partnership with Reddit and uses Reddit data to train its systems,' Semrush analyst Rachel Handley wrote in the June 9 analysis. Google announced its $60 million deal with Reddit last February. Despite Reddit stock's climb this week, shares are far below their high of above $230 in February. The stock traded at around $131 before the market open Tuesday. Yahoo Finance's Hamza Shaban writes in today's Morning Brief newsletter: Read more here. A standout record-setting rally in gold (GC=F) is about to peter out, Citigroup strategists said as they forecast a slide back below $3,000 an ounce for the precious metal in coming quarters. Bloomberg reports: Read more here. Economic data: Retail sales (May); Industrial production (May); NAHB housing market index (June); Import price index (May) Earnings: La-Z-Boy Incorporated (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Investor optimism has squashed another downbeat catalyst Trump: EU not offering fair trade deal, Japan being 'tough' too Trump says he wants 'real end' to conflict, not just ceasefire Anne Wojcicki's 23andMe bid may not end DNA data lawsuit How a prolonged Israel-Iran conflict could speed up Fed rate cuts US solar stocks slammed after Senate changes to tax bill Trump says he will probably extend TikTok deadline again SoftBank sells T-Mobile stake for $4.8 billion to fund AI push Here are some top stocks trending on Yahoo Finance in premarket trading: T-Mobile US, Inc. (TMUS) stock fell 4% in premarket trading on Tuesday, after SoftBank Group Corp. (SFTBF, SFTBY) managed to raise $4.8B via the sale of T-Mobile US Inc. shares. The move is set to help fund Softbank's plans for artificial intelligence. Microsoft (MSFT) stock fell over 1% before the bell today following reports that the Big Tech's relationship with OpenAI has become "strained." Per The Wall Street Journal, OpenAI executives are weighing the option of whether to accuse Microsoft of anticompetitive behavior, according to people familiar with the matter. Solar stocks dropped in premarket trading Tuesday after Senate Republicans released a bill that would end tax credits for wind and solar earlier that other sources. The news caused SunRun Inc. (RUN) stock to drop by 28% and SolarEdge Technologies Inc. (SEDG) by 21%. US solar stocks have tumbled after a Senate panel released proposals for an early and full phase-out of solar and wind energy tax credits on Monday. The plan to remove credits by 2028 are among the several changes put forward by a Republican-controlled panel to President Trump's "big beautiful" tax and spending bill. Shares of Enphase Energy (ENPH), which makes solar inverters, dropped 17% before the bell. Meanwhile, solar panel seller Sunrun (RUN) tumbled 26%, while its peer SolarEdge Technologies (SEDG) sank more than 20%. First Solar (FSLR) pulled back 11%. US stocks slipped on Tuesday amid dwindling hopes for a quick resolution to Israel-Iran hostilities, as President Trump heightened his rhetoric against Iran and called for an "unconditional surrender." Stock losses picked up steam shortly following the post. The Dow Jones Industrial Average (^DJI) fell around 0.87, or about 300 points. The benchmark S&P 500 (^GSPC) dipped more than 0.8% while the tech-heavy Nasdaq Composite (^IXIC) pulled back over 0.9%. The Energy (XLE) sector was the lone S&P 500 sector in the green on Tuesday, rising about 1% as oil prices once again picked up. Oil prices jumped over 4% as investors weighed the stream of remarks and reports, with Brent futures (BZ=F) settling above $76.50 a barrel and West Texas Intermediate (CL=F) crude hitting nearly $75. The "FOMO" trade is alive and well in markets once again. Recent IPOs, like stablecoin issuer Circle (CRCL) and AI cloud company CoreWeave (CRWV), have both seen their stocks rise more than 100% since going public. Shares of nuclear energy company turned AI play Oklo (OKLO) are up more than 70% in the past month. Quantum Computing (QUBT) shares are up more than 56% in the past month, and others in the space have also ripped higher. "The commonalities are they're speculative," Interactive Brokers chief markets strategist Steve Sosnick said in an interview. "They're momentum-driven, and they almost always have some sort of tech veneer to them." With the S&P 500 (^GSPC) back near record highs, the common pillars of the current three-year bull market have clearly returned in markets. Two of the most popular AI trades, Palantir (PLTR) and Nvidia (NVDA), are back to trading near all-time highs. "It's kind of a freight train," Sosnick said. "Remember one of the great adages, 'the trend is your friend'? Well, people seem to be doing very well by following trends." Read more here. Oil prices jumped over 3% as investors assessed the latest Israel-Iran hostilities and digested a stream of remarks and reports in afternoon trade. According to Axios, the US is contemplating military strikes against Iran, heightening concerns about the possibility of a full-scale regional conflict. Brent futures (BZ=F) settled above $76.50 a barrel and West Texas Intermediate (CL=F) crude hit $75. Stock losses accelerated in mid-afternoon trading on Tuesday as President Trump heightened his rhetoric against Iran and called for an "unconditional surrender." In a post on Truth Social, Trump said the US knows where the country's leader is hiding, adding, "He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin." The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.5%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back around 0.5%. In the latest in a string of signs that market sentiment has recovered significantly from the heigh of April's tariff turmoil, Bank of America's June Global Fund Manager's Survey showed 66% of investors said they believe the global economy will achieve a "soft landing," in which inflation falls to the Fed's 2% target without an outright downturn in economic activity. The 8-month high among respondents believing a soft landing is in sight, comes as recession probabilities have tumbled over the past month while consumers worst fears about a tariff-driven inflation spike have also subsided. Bank of America Global Research chief investment strategist Michael Hartnett wrote the survey showed, "investor sentiment back to pre-Liberation Day 'Goldilocks bull' levels." Yahoo Finance's Ines Ferré reports: Read more here. JetBlue's (JBLU) stock declined more than 3% on Tuesday after the company revealed plans to further reduce costs and scale back flights. Yahoo Finance's Brooke DiPalma reports: Read more here. A prolonged conflict between Israel and Iran may do more than rattle energy markets. One argument on Wall Street is that it could push the Federal Reserve to cut interest rates sooner than expected. "A sustained rise in oil prices could cause the Fed to strike a more dovish tone," Oxford Economics chief US economist Ryan Sweet wrote in a recent note to clients, arguing that an extended oil shock could dent demand and potentially spill over into an otherwise resilient labor market. That's because, historically, sudden spikes in oil prices tend to cause only a temporary rise in inflation that the Fed usually overlooks. But with the economy already softening, a persistent surge could pose a bigger threat to growth and jobs than to inflation itself. "The economy has slowed and is vulnerable to anything else going wrong, including a sudden and persistent increase in oil prices," Sweet said. "If the Fed views the hit to the economy and the labor market as greater than the temporary boost to inflation, the central bank could signal that it's open to cutting interest rates sooner." On Tuesday, oil prices rallied, with international benchmark Brent (BZ=F) rising above $75 a barrel after President Trump called for Tehran residents to evacuate and rebuffed the idea of an Israel-Iran ceasefire. That contrasted with optimism on Monday, when the Wall Street Journal reported that tensions between Iran and Israel had eased, sparking a rally in US equities and stabilizing crude oil prices following last week's biggest price surge in three years. Sweet, whose baseline forecast is that the Fed will deliver its first rate cut in December, noted it may take weeks before markets gain a clearer sense of the direction of oil prices. Read more here. Solar stocks were pummeled in early afternoon trading after the Senate's version of President Trump's tax and spending bill showed that Republicans are united in eliminating tax credits for clean energy. The Senate's changes to the bill, released on Monday, called for a total phaseout of solar and wind credits by 2028, prompting the sell-off in solar names. Meanwhile, the revisions extended tax incentives for hydropower, nuclear, and geothermal energy until 2036, boosting shares of Sam Altman-backed nuclear energy startup Oklo (OKLO) and other energy names that are seen as winners. Read more about what the Senate's budget blueprint means for business. Yahoo Finance's Dan Howley and Alexis Keenan report: Read more here. US stocks slid on Tuesday as President Trump played down the prospect of a truce between Israel and Iran and retail sales came in below expectations. The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back 0.3%. Kraft Heinz (KHC) stock edged higher after the maker of Kool-Aid and Jell-O said it's eliminating synthetic dyes across the remaining 10% of its US portfolio that contains them. Yahoo Finance's Brooke DiPalma reports that Kraft Heinz will replace artificial dyes with natural colors or reinvent items with new colors. The company will also refrain from launching new products that contain food additives. This announcement comes amid growing scrutiny of food additives. Health and Human Services Secretary Robert F. Kennedy Jr. has said he wants to remove artificial coloring from the food supply by the time he leaves office. Read more here. The US Department of Defense announced Monday that it awarded OpenAI ( a $200 million contract to "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains." "This contract is one of the largest Department of Defense contracts given to a software provider when measured by annual contract value," William Blair analyst Louie DiPalma wrote in a note to clients Monday. DiPalma said that the "contract announcement could signal increased competition from OpenAI going forward" for Palantir (PLTR) "if OpenAI moves into Palantir's ontology territory." Ontology refers to an operational layer in Palantir's platform. DiPalma noted that Palantir paved the way for OpenAI and others. "Palantir has pioneered software providers serving as prime contractors for Department of Defense programs," DiPalma wrote. "Traditionally, software providers served as subcontractors to systems integrators. Under the new administration, the Department of Defense is looking to contract directly with commercial software providers when possible." Palantir rose less than 1% on Tuesday. In December, Palantir shares dropped as much as 5% when defense tech firm Anduril ( announced a partnership with OpenAI to "develop and responsibly deploy advanced artificial intelligence (AI) solutions for national security missions." Retail sales fell in May, dragged down by declines in gas and auto purchases during the second month that a wide array of President Trump's tariffs were in effect. Headline retail sales declined 0.9% in May, surpassing economists' expectations for a 0.6% decline month on month. By comparison, sales decreased 0.1% in April, according to revised Census Bureau data. A 2% decline in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials drove the May headline number lower. There was some positive news in the release: The control group in Thursday's release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.4%. That compares with a 0.1% decrease seen in April. Economists expected a 0.3% increase. May sales, excluding auto and gas, declined 0.1%. Economists had expected a 0.3% rise. In April, sales excluding auto and gas rose 0.1%. Reddit stock (RDDT) rose roughly 5% in premarket trading on Tuesday following the social media platform's release of new AI ad tools at the Cannes Lions festival for marketers on its platform. Meanwhile, broader S&P 500 futures (ES=F) fell by 0.3%. The gain follows Reddit's 6.8% jump Monday, after media reports spotlighted a recent analysis from data analytics firm Semrush, showing that Reddit is the second most cited website in Google AI overviews. 'Reddit may also perform well because Google has a partnership with Reddit and uses Reddit data to train its systems,' Semrush analyst Rachel Handley wrote in the June 9 analysis. Google announced its $60 million deal with Reddit last February. Despite Reddit stock's climb this week, shares are far below their high of above $230 in February. The stock traded at around $131 before the market open Tuesday. Yahoo Finance's Hamza Shaban writes in today's Morning Brief newsletter: Read more here. A standout record-setting rally in gold (GC=F) is about to peter out, Citigroup strategists said as they forecast a slide back below $3,000 an ounce for the precious metal in coming quarters. Bloomberg reports: Read more here. Economic data: Retail sales (May); Industrial production (May); NAHB housing market index (June); Import price index (May) Earnings: La-Z-Boy Incorporated (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Investor optimism has squashed another downbeat catalyst Trump: EU not offering fair trade deal, Japan being 'tough' too Trump says he wants 'real end' to conflict, not just ceasefire Anne Wojcicki's 23andMe bid may not end DNA data lawsuit How a prolonged Israel-Iran conflict could speed up Fed rate cuts US solar stocks slammed after Senate changes to tax bill Trump says he will probably extend TikTok deadline again SoftBank sells T-Mobile stake for $4.8 billion to fund AI push Here are some top stocks trending on Yahoo Finance in premarket trading: T-Mobile US, Inc. (TMUS) stock fell 4% in premarket trading on Tuesday, after SoftBank Group Corp. (SFTBF, SFTBY) managed to raise $4.8B via the sale of T-Mobile US Inc. shares. The move is set to help fund Softbank's plans for artificial intelligence. Microsoft (MSFT) stock fell over 1% before the bell today following reports that the Big Tech's relationship with OpenAI has become "strained." Per The Wall Street Journal, OpenAI executives are weighing the option of whether to accuse Microsoft of anticompetitive behavior, according to people familiar with the matter. Solar stocks dropped in premarket trading Tuesday after Senate Republicans released a bill that would end tax credits for wind and solar earlier that other sources. The news caused SunRun Inc. (RUN) stock to drop by 28% and SolarEdge Technologies Inc. (SEDG) by 21%. US solar stocks have tumbled after a Senate panel released proposals for an early and full phase-out of solar and wind energy tax credits on Monday. The plan to remove credits by 2028 are among the several changes put forward by a Republican-controlled panel to President Trump's "big beautiful" tax and spending bill. Shares of Enphase Energy (ENPH), which makes solar inverters, dropped 17% before the bell. Meanwhile, solar panel seller Sunrun (RUN) tumbled 26%, while its peer SolarEdge Technologies (SEDG) sank more than 20%. First Solar (FSLR) pulled back 11%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
