Stock Indexes Close Lower as Tech Shares Lead Declines; Fed Chair Powell Gives First Comments Since Rate Cut

Biggest S&P 500 Movers on Tuesday

3 hr 58 min ago

Decliners

Shares of Generac Holdings (GNRC), a supplier of standby power generators and other energy equipment, fell the most of any S&P 500 stock on Tuesday, dropping more than 10%. Although analysts at Stifel reiterated their « buy » rating on Generac stock, pointing to promising opportunities in providing emergency power backup solutions for data centers, they noted headwinds in the market for home standby generators.
Jefferies downgraded Vistra (VST) stock to « hold » from « buy » and reduced its price target. Shares of the electric utility company dropped 6.3%. Analysts noted that the stock is trading near its all-time high, pushed upward by enthusiasm about demand from power-intensive data centers. The firm also expressed concern that Vistra has yet to announce a data center agreement for its Comanche Peak nuclear facility in Texas.
Shares of Regeneron Pharmaceuticals (REGN) slipped 4.7% after a judge in Austria ruled in favor of a competitor that intends to create a competing version of Eylea, the treatment for eye disorders that accounts for a significant portion of its revenue. The news added to concerns about declines in Regeneron’s revenue growth and operating margins.

Advancers

Crude oil futures prices ticked higher as a plan to resume oil exports from Iraq’s Kurdistan region hit a roadblock, helping alleviate concerns about global oversupply. Energy was the top-performing sector on Tuesday. Shares of oilfield services giant Halliburton (HAL) rose 7.3%, notching the S&P 500’s top daily performance, while Baker Hughes (BKR) gained 2.6%.
Shares of McKesson (MCK) advanced 6.4% after the distributor of pharmaceuticals and medical supplies increased its adjusted profit guidance for fiscal 2026 and raised its long-term growth target. The company recently announced a restructuring plan and said it intends to accelerate growth by concentrating on high-margin areas such as cancer medications.
Paramount Skydance (PSKY) shares jumped 6% following a report that Makan Delrahim, who served as an antitrust official during the first Trump administration, was in negotiations to join the company. Delrahim’s potential employment comes as Paramount Skydance is reportedly considering a bid to acquire media and entertainment rival Warner Bros. Discovery (WBD).

-Michael Bromberg

Micron Stock Rises on Strong Results, Rosy Outlook

4 hr 17 min ago

Micron Technology (MU) shares climbed in extended trading Tuesday after the memory chip maker posted record quarterly sales, boosted by surging demand for AI hardware.

The Nvidia (NVDA) and Advanced Micro Devices (AMD) partner’s shares were up nearly 3% in recent after-hours trading. They’ve nearly doubled in value in 2025 through Tuesday’s close.

The memory chip maker reported adjusted earnings per share of $3.03 on revenue that jumped 46% year-over-year to a record $11.32 billion in its fiscal fourth quarter. Both figures topped analysts’ estimates compiled by Visible Alpha as Micron’s data center business grew.

“In fiscal 2025, we achieved all-time highs across our data center business and are entering fiscal 2026 with strong momentum and our most competitive portfolio to date. As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead, » said CEO Sanjay Mehrotra.

Looking ahead, Micron said it expects adjusted earnings per share of $3.41 to $3.71 on revenue of $12.20 billion to $12.80 billion in the fiscal first quarter, ahead of consensus projections.

-Kara Greenberg

Powell Warns Fed Faces a ‘Challenging’ Situation

4 hr 25 min ago

Federal Reserve Chair Jerome Powell said there is no easy answer as the Fed grapples with whether to use its key interest rate to fight inflation or to boost the struggling job market.

Powell covered familiar ground speaking Tuesday at an event in Rhode Island, highlighting the dilemma of the Fed’s dual mission to control prices and boost employment at the same time. Powell gave no indication as to when the Fed would reduce rates again, after cutting last week for the first time this year.

When inflation is above the Fed’s goal of a 2% annual rate, the central bank’s playbook calls for it to raise the fed funds rate, pushing up borrowing costs on short-term loans. When the job market deteriorates, it will normally lower interest rates to boost the economy. Last week, policymakers decided lowering the rate in the face of high inflation was the lesser of two evils. But Powell said the Fed’s strategy could change based on economic data in the coming months.

« We only have one tool, which is monetary policy—really, interest rates—and (the situation) is calling for different answers, » Powell said. « It’s a very difficult policy environment when your two goals are telling you two different things, you’ve got to make a compromise. »

So far, the compromise has been to lower rates and take pressure off of the job market. Powell said the Fed is working under the assumption that President Donald Trump’s tariffs will cause a one-time boost to prices rather than setting off a cycle of persistent price hikes, or in other words, high inflation. But Powell said he and other Fed officials are closely watching data for signs that’s not the case.

Read the full article here.

-Diccon Hyatt

Amazon Stock Was Worst Performer in the Dow on Tuesday

5 hr 51 min ago

Amazon (AMZN) was the worst-performing stock in the Dow on Tuesday, with shares ending down 3%.

Amazon is squaring off against the Federal Trade Commission in court after the agency filed a lawsuit during the Biden administration alleging the company made it too onerous for customers to cancel their Prime memberships.

Shares of Amazon are little changed this year.

Kenvue Stock Recoups Losses After Trump Links Tylenol to Autism

6 hr 54 min ago

Kenvue stock is rebounding. It may be a largely a case of things-could’ve-been- worse.

Kenvue (KVUE) shares were recently up some 3%, recovering a bit after a more than 7% selloff Monday in anticipation of President Donald Trump’s comments regarding Tylenol, one of its core products, and autism. Trump on Monday evening said taking Tylenol while pregnant is « not good, » but his administration in a fact sheet said that « evidence does not definitively establish causality” between acetaminophen, the active ingredient in Tylenol, and autism.

By midday Tuesday, Kenvue shares had recovered almost 60% of their losses since Friday’s close. Some investors seem to have anticipated more regulation of Tylenol in the administration’s plan to tackle what it calls an « autism epidemic, » Citi analysts said late yesterday.

Trump-administration policy reflected « a better-than-feared outcome, as some investors had feared an outright ban of Tylenol (or more severe sales limitations) and/or the release of new scientific data establishing (a) direct causal link between acetaminophen and autism,” the analysts said.

Tylenol represents about 10% of Kenvue’s sales and generates 12% to 15% of its operating profit, Citi estimates. Kenvue’s self-care segment, which includes Tylenol, Motrin, Benadryl, and other medications, generated about 42% of the company’s sales last fiscal year, according to its annual report.

Read the full article here.

-Sarina Trangle

Paramount Skydance Stock Pops; Former Trump Antitrust Official Reportedly Close to Joining Legal Team

7 hr 20 min ago

Paramount Skydance (PSKY) was the top-performing stock in the S&P 500 Tuesday afternoon, with shares advancing 8% following a New York Post report that Makan Delrahim, an antitrust official during the first Trump Administration, was « in advanced talks to join » the company.

Delrahim, who served as Assistant Attorney General for the U.S. Department of Justice’s Antitrust Division during Trump’s first term, subsequently became a partner at law firm Latham & Watkins and advised on the recently completed merger of Paramount and Skydance, the report said.

Shares of Paramount Skydance, which reportedly is weighing a potential bid for fellow entertainment giant Warner Bros. Discovery (WBD), have soared about 80% since the entertainment firms completed their merger on Aug. 7.

Paramount Skydance did not immediately respond to an Investopedia request for comment.

Firefly Is Losing Its Buzz After a Big IPO

9 hr 1 min ago

Firefly Aerospace (FLY) shares tumbled Tuesday, a day after the aerospace firm posted widening losses, as a mishap that grounded its Alpha rocket weighed on its results.

The stock was down nearly 12% in recent trading around $43. Monday’s quarterly report was the company’s first since it went public last month, with Tuesday’s drop dragging the stock below its initial public offering price of $45 per share.

Firefly reported a second-quarter loss of $80.3 million, or $5.78 per share. That compares to a loss of $58.7 million or $4.60 per share a year ago.1

The Federal Aviation Administration had halted launches of Firefly’s Alpha rocket following a rupture during a late April flight that led the Alpha Flight 6 to fail to reach orbit and fall into the ocean. Following an investigation, the FAA last month allowed the company to resume Alpha missions.

CEO Jason Kim said in a call with analysts that Firefly has made changes to Alpha to address the issue, and “is now working to determine the next available launch window for Alpha Flight 7,” according to a transcript provided by AlphaSense.

The company also said it received a $10 million contract addendum from the National Aeronautics and Space Administration related to Firefly’s Blue Ghost lunar mission. Blue Ghost was the first commercial spacecraft to land on the moon, and the addendum will have the company provide NASA with more data collected from that trip.

-Bill McColl

Energy-Related Stocks Among Top Performers in S&P 500 Today

9 hr 58 min ago

Several energy-related stocks were among the biggest risers in the S&P 500 around midday.

Oilfield-services firm Halliburton (HAL) shares were up about 8%. Other top advancers included Sempra (SRE), Baker Hughes (BKR), and Diamondback Energy (FANG).

Crude prices recently were up more than 2%.

AutoZone Posts Weaker-Than-Expected Q4 Profit

10 hr 33 min ago

AutoZone (AZO) posted weaker-than-expected quarterly profit as its spending increased.

The auto parts retailer reported fourth-quarter fiscal 2025 net income that dropped 7.2% to $837.0 million, with diluted earnings per share of $48.71. Analysts surveyed by Visible Alpha were looking for $867.5 million and $50.89, respectively. Revenue rose 0.6% to $6.24 billion, basically in line with forecasts. Same-store sales grew 4.5%, slightly higher than estimates.

Operating, selling, general, and administrative expenses were up 3.0% to $2.02 billion as AutoZone added 141 stores and expanded its inventory 14.1%.

CEO Phil Daniele said that trend will continue, as AutoZone expects to “aggressively open stores in the new year.” He added that by investing in the business, the company anticipates ”that our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value.” 

AutoZone shares were flat in morning trading. Prior to today’s session, they were up 29% year-to-date.

-Bill McColl

Nvidia Levels to Watch After Chip Giant’s $100B Deal With OpenAI

11 hr 44 min ago

Nvidia (NVDA) shares lost ground in early trading Tuesday after logging their largest one-day percentage gain since July on news the AI favorite plans to invest up to $100 billion in OpenAI.

Under the deal, Nvidia will supply OpenAI with its next-generation Vera Rubin platform to help the ChatGPT maker build data centers and other AI infrastructure with a capacity of at least 10 gigawatts of power. The companies said they anticipate finalizing the details of the partnership in the coming weeks.

Nvidia shares were down 2% at around $180 in recent trading after surging nearly 4% on Monday. Through yesterday’s close, the stock had gained 37% so far in 2025, handily outpacing broader market returns over the period. Investors have piled into the stock as big tech hyperscalers and sovereign customers invest heavily in the company’s products as they ramp up their AI capacity.

After setting their record high last month, Nvidia shares consolidated within a symmetrical triangle before breaking out from the pattern in Monday’s trading session.

The breakout indicates a continuation of the stock’s extended move higher, with increasing volume in recent days signaling conviction from larger market participants.

It’s also worth noting that the relative strength index has moved back into bullish territory, confirming strengthening price momentum.

Read the full technical analysis piece here.

-Timothy Smith

Boeing Stock Rises on Uzbekistan Airways Order That Trump Says Is Worth $8B

12 hr 23 min ago

Boeing (BA) has logged its biggest-ever single order with a sale of up to 22 787 Dreamliners to Uzbekistan Airways, in a deal President Donald Trump said is worth more than $8 billion.

The companies said Monday that Uzbekistan Airways would buy 14 of Boeing’s 787-9 Dreamliner jets, with options for eight more, sending shares of the U.S. plane maker rising 2.2% in premarket trading. The stock entered 2025 up 20%, after stumbling last year following a series of safety incidents and a crippling strike at its Washington plants.

“Earlier this month I spoke with the Highly Respected President of Uzbekistan, Shavkat Mirziyoyev. Today I want to congratulate President Mirziyoyev on signing a GREAT Deal with Boeing!” President Trump said in on his Truth Social platform. He added that the deal is « worth over $8 Billion Dollars. »

The companies said the investment will support “nearly 35,000 U.S. jobs.”

Uzbekistan Airways said the order would help modernize its fleet and « expand its international routes to the U.S. and other long-haul destinations as demand for international travel continues to rise. » The Dreamliner is a wide-body jet known for being fuel efficient.

-Nisha Gopalan

IonQ Stock Rises as Firm Claims ‘Significant Quantum Internet Milestone’

13 hr 2 min ago

Shares of IonQ (IONQ) advanced 4% before the bell after the quantum computing company said it achieved a « milestone » advancement.

The College Park, Md.-based firm said it « successfully demonstrated the frequency conversion of photons from visible wavelengths used to interface with trapped barium ions, into telecom wavelengths on a prototype system. This critical milestone paves the way for interconnecting quantum computers over vast distances using the current existing fiber optic infrastructure. »

IonQ shares entered the day up more than 70% year-to-date.

OECD Says US GDP Growth to Slow Next Year

13 hr 27 min ago

The Organisation for Economic Co-operation and Development on Tuesday raised its growth forecast for the U.S. economy in 2025 on the back of investing around the AI boom, but noted that tariffs and lower net immigration are taking a toll and would lead to slowing growth next year.

The OECD said it expects the U.S.’s annual real gross domestic product growth rate to come in at 1.8% in 2025, up from its 1.6% projection in June. That is, however, well below the 2.8% GDP growth registered in 2024. U.S. GDP is projected to rise by just 1.5% next year.

« Strong AI-related investment boosted outcomes in the United States, » the Paris-based body said, but also noted that GDP growth is falling from 2024 as « strong investment growth in high technology sectors is more than offset by higher tariff rates and a drop in net immigration. »

The OECD said that the overall effective tariff rate in the U.S. rose to around 19.5% at the end of August, the month when President Donald Trump’s « reciprocal » tariffs went into effect. That is the highest rate since 1933, it said. The OECD also noted a softening in U.S. labor markets.

Read the full article here.

-Nisha Gopalan

Stock Futures Little Changed After Major Indexes Set Latest Record Highs

14 hr 32 min ago

Futures tied to the Dow Jones Industrial Average were up roughly 0.1%.

S&P 500 futures fell about 0.1%.

Nasdaq 100 futures slipped less than 0.1%.