Stock Indexes Hit New Highs; S&P 500, Nasdaq Post 3rd Straight Week of Gains

Biggest S&P 500 Movers on Friday

September 19, 2025 06:01 PM EDT

Advancers

• Paramount Skydance (PSKY) shares advanced 5.8%, logging the top performance in the S&P 500, as reports outlined some terms that could be included as the company weighs a potential bid for fellow entertainment giant Warner Bros. Discovery (WBD). If it comes to fruition, the massive media deal would preempt WBD’s previously announced plan to separate its streaming and studio operations from its TV business. According to CNBC, the possible offer could be around 70% to 80% cash, with the backing of Oracle (ORCL) co-founder Larry Ellison, father of Paramount Skydance CEO David Ellison. WBD shares were up 3.4%.
• Shares of Boston-based utility company Eversource Energy (ES) jumped 4.9%. As colder temperatures approach. Eversource asked the Massachusetts Department of Public Utilities for permission to raise prices by 13% for its natural gas customers in the state. Gov. Maura Healey was critical of the price-hike request, suggesting that it would be difficult for residents to afford and indicating that she would call for scrutiny of the proposal by the DPU.
• Newmont (NEM), the world’s largest gold producer, announced that it sold off its full stake in Canada-based Orla Mining (ORLA) for $439 million. The move is part of Newmont’s plan to reduce its debt, lower headcount, and divest non-core assets following its acquisition of Australia’s Newcrest Mining in 2023. Newmont shares advanced 4.3% on Friday, while Orla’s shares were down more than 7%.

Decliners

• Shares of medical device maker DexCom (DXCM) dropped more than any other S&P 500 stock on Friday, falling 11%. The move lower followed a report from short seller Hunterbrook Capital alleging that there are problems with DexCom’s G7 continuous glucose monitors for people managing diabetes. Hunterbrook also raised questions about DexCom’s accounting and flagged the recently announced leave of absence taken by CEO Kevin Sayer.
• Companies in the IT services business came under pressure after reports that President Trump intends to initiate a $100,000 application fee for H-1B worker visas. The president is also reportedly exploring changes to prevailing-wage rules as an additional way of discouraging the use of H-1B visas. Shares of global tech consulting firm Cognizant Technology Solutions (CTSH) dropped 4.7%.
• Lennar (LEN) shares lost 4.2% after the homebuilding giant reported lower-than-expected sales and profits for its fiscal third quarter. The company cited softness in the housing market and noted that it increased incentives to entice homebuyers who remain hesitant due to elevated mortgage rates.

–Michael Bromberg

How Much Should Investors Read Into Nvidia-Intel Deal?

September 19, 2025 05:43 PM EDT

Some investors reacted strongly—and quickly—to Nvidia’s $5 billion investment in Intel, fearing stiffer competition for Arm and Advanced Micro Devices. Those initial worries appear to have subsided, but questions about how much to read into the deal remain.

Shares of Nvidia (NVDA) design partner Arm (ARM) slipped 7% in the wake of yesterday’s deal, which included a plan for Intel and Nvidia to co-develop AI chips. AMD (AMD) shed nearly 6% before recouping most of those losses. Some Wall Street analysts indicated the tie-up would have less of an impact than the initial moves would suggest.

Bank of America analysts on Friday said they see “limited near-term impact” for AMD and ARM because of the tie-up. They maintained “buy” ratings for both companies’ shares, and pointed to potential upside for companies that sell chipmaking equipment or software used in the design process. Shares of firms in those businesses, including ASML (ASML), Applied Materials (AMAT), and Lam Research (LRCX), have gained since yesterday’s announcement. 

The impact on AMD could be “less impactful than we might have thought at first blush,” Bernstein analysts wrote, saying they see sentiment for manufacturing equipment makers like ASML getting a boost.

One open question for investors: whether the Intel-Nvidia tie-up might mean more business for Intel’s foundry, which makes chips for other companies. The deal announced Thursday did not include foundry commitments.

Bernstein said Nvidia’s moves could indicate a preference for its existing manufacturing partners like TSMC (TSM)—as well as a desire to buy goodwill from the U.S. government, which now holds a 10% stake in Intel, without a deeper commitment.

“Both companies went out of their way to sing TSMC’s praises (which makes sense as neither can afford to alienate their most important supplier at this point),” Bernstein analysts said, noting that even if Nvidia moved forward with an Intel manufacturing deal, it would still continue to work with TSMC, likely not making much of a dent in that company’s business.

Nvidia “is already undoubtedly ‘engaging’ with Intel to at least evaluate their foundry prospects as, presumably, are many others,” Bernstein wrote. “Everyone wants to be able to have Intel as a second source.”

–Kara Greenberg

S&P 500, Nasdaq Post 3rd Consecutive Week of Gains

September 19, 2025 04:17 PM EDT

Major stock indexes are hitting their groove.

The S&P 500 and Nasdaq Composite posted their third consecutive week of gains, while the Dow Jones Industrial Average was higher for a second straight week.

The tech-heavy Nasdaq led the charge this week, advancing 2.2%. The benchmark S&P 500 rose 1.1% and the blue-chip Dow gained 1% over the five sessions.

Oklo Stock Hits Latest All-Time High

September 19, 2025 03:04 PM EDT

The surge in Oklo (OKLO) shares shows no signs of slowing.

Shares of the nuclear energy firm hit an all-time high for a third straight day Friday, soaring nearly 25% in recent trading to about $130.

Of the eight analysts covering the stock tracked by Visible Alpha, six rate it as a “buy” and two have it as a “hold.” Late last month, Bank of America analysts initiated coverage with a “buy” rating, saying Oklo was “well positioned to meet the rising energy needs of AI.”

Oklo shares have soared about 55% this week and skyrocketed more than 500% in 2025.

The AI Stock Rally Has More Room To Run, Says BofA. Here’s How To Play a Possible Bubble

September 19, 2025 02:10 PM EDT

The AI-driven rally in big tech stocks has more room to run, according to Bank of America strategists, who have some ideas about how investors can play a potential AI bubble. 

Across nine equity bubbles since 1900, the average rise from start to peak has been 244%, according to analysts led by Michael Hartnett. At peak bubble, the average price-to-earnings ratio (P/E) has been 58, and stocks have traded 29% above their 200-day moving average.

The Magnificent Seven, Hartnett says, are the “best bubble proxy today.” Since March 10, 2023, the group of big tech stocks has risen 225% and currently trades at a P/E of 39. The group also trades about 20% above its 200-day average. Altogether, the data suggests “more to go” before tech valuations and stocks reach peak bubble. 

Market watchers have warned of a big tech bubble for some time, but that hasn’t stopped investors from piling into the Mag Seven, drawn to their wide competitive moats, healthy balance sheets, and leadership in artificial intelligence. 

The rally has stumbled on several occasions this year. In January, Chinese start-up DeepSeek rattled tech stocks with its super-efficient reasoning model. Then, in March and April, the Mag Seven stocks plummeted amid uncertainty about President Trump’s tariffs. 

The Mag have rallied about 60% since early April’s “Liberation Day” rout. Some of those gains can be attributed to optimism about AI, but the group has also benefited from resilient earnings, a laxer regulatory and tax environment under President Trump, and hope for lower interest rates. (That hope was realized earlier this week when the Federal Reserve cut rates for the first time since December.) 

Read the full article here.

–Colin Laidley

A Small-Stock Index Recently Set a New Record. What’s Next for Small Caps?

September 19, 2025 01:51 PM EDT

The little engines that could just did.

The Russell 2000 index ended yesterday at 2467.70, setting a fresh closing high for the first time since 2021. Small-cap stocks had been rising on anticipation of lower rates, and after the Federal Open Market Committee on Wednesday offered just that—announcing a quarter percentage-point cut and projecting two more before the year’s end—the index took a victory lap.

Investors have been waiting a while to see sustained outperformance by small caps, generally considered companies with market capitalizations between $250 million and $2 billion, as large-caps have clambered higher. (Both the Russell and the S&P 500 have climbed steadily this year post-Liberation Day, but the latter has outperformed in 2025.)

Smaller companies tend to outperform in declining interest rate environments, benefitting from higher profits and lower financing costs, but their comparatively lower valuations, and collective earnings outlook have also supported their advance.

“There is some reflexivity in that investors have waited so long for performance in small cap stocks, they need to see the start of outperformance of small cap stocks before they believe the trend,” Janus Henderson portfolio manager Aaron Schaechterle told Investopedia last week.

The iShares Russell 2000 ETF (IWM) has outpaced the iShares Russell 1000 ETF (IWB)—a measure that tracks bigger companies—in the past three months, with the former posting a 15% return compared to the latter’s roughly 10% through Thursday’s close, according to Yahoo Finance. Still, Schaechterle sees room for it to keep running.

Read the full article here.

–Crystal Kim

Netskope Stock Pops Friday, Extending Post-IPO Gains

September 19, 2025 01:22 PM EDT

Shares of Netskope (NTSK) surged Friday, extending gains after making their debut on the Nasdaq Thursday.

The stock was up close to 7% around $24 in recent trading, after finishing Thursday’s session 18% above their initial public offering (IPO) price of $19 per share.

The IPO price was at the high end of the company’s expectations, and the 47.8 million shares sold helped Netskope raise $908.2 million.

CEO Sanjay Beri told Yahoo! Finance in a televised interview that he expects going public could help boost the company’s credibility and customer awareness.

Netskope, which counts companies like Palo Alto Networks (PANW) and Zscaler (ZS) as competitors, reported a 31% year-over-year jump in revenue to $328 million for the six months ended in July, according to a regulatory filing.

 It’s $170 million net loss over that period narrowed from $207 million a year ago.

This has been a strong year so far for a number of cybersecurity stocks, amid expectations the sector could get a boost from strong demand trends as AI-driven threats grow. Zscaler shares have added over 60% of their value in 2025, while CrowdStrike (CRWD) has climbed close to 50%. Palo Alto Networks shares have added about 13%, roughly in line with the S&P 500’s rise over the same period.

–Bill McColl

Scholastic Stock Plunges as Uncertainty Over Government School Funding Hurts Results

September 19, 2025 12:49 PM EDT

Scholastic (SCHL) shares sank Friday after the children’s books publisher reported a quarterly loss as schools pulled back on spending because of uncertainty over government funding.

The company posted a fiscal 2026 first-quarter loss of $97 million, compared with the $92 million loss recorded a year ago. Revenue fell 5% to $225.6 million, falling short of analysts’ expectations.

Revenue in the company’s Education Solutions segment plunged 28% to $40 million, which Scholastic attributed to “increased funding uncertainty for schools and school districts, which has impacted spending on supplemental curriculum materials.”

CEO Peter Warwick said that the company was “focused on optimizing capital allocation and strengthening our balance sheet to enhance shareholder value.” To that end, he noted that the firm’s recently-launched moves to “evaluate potential sale-leasebacks of key real estate assets have drawn substantial interest.”

Scholastic is in the process of identifying potential investors for sale-leaseback deals for its office and retail real estate in New York City and distribution centers in Jefferson City, Mo. The company anticipates both processes to conclude this fall. Scholastic added that it “continues to believe that its significant real estate assets, if monetized, could provide significant additional liquidity to be deployed in accordance with its capital allocation priorities, including debt reduction and share repurchases.”

Shares of Scholastic were down about 12% in recent trading. Coming into today’s session, the stock was up nearly 30% in 2025.

–Bill McColl

Stock Buybacks Have Slowed. Here’s Why It Matters That They Could Bounce Back.

September 19, 2025 11:54 AM EDT

A slump in stock buybacks could be in the rearview mirror. What that means for stocks is more complicated.

S&P 500 buybacks in the second quarter fell 20% from record highs in the first quarter, but they are expected tick up in the current one. With economic policy uncertainty starting to dissipate and interest rates headed lower, repurchase activity from companies in the broad market index is expected to return to record levels, according to S&P Dow Jones Indices.

Wall Street analysts, however, say buybacks may not be as helpful to EPS growth as they once were.

Headline buyback figures are big, but their growth has stalled lately even for the biggest companies in the index. Companies like Apple (AAPL), Meta Platforms (META), Alphabet (GOOGL) and Nvidia (NVDA), which usually account for about 30% of annual buyback spending, posted no meaningful year-over-year growth in the second quarter, according to a recent Goldman Sachs report.

Read the full article here.

–Crystal Kim

SEC Chairman Atkins Says He Supports Proposal to End Quarterly Reporting Mandate

September 19, 2025 11:20 AM EDT

Securities and Exchange Commission chairman Paul Atkins said he supports a proposal to end the agency’s requirement for quarterly reporting by companies, days after President Trump floated the idea.

On Monday, Trump wrote on his Truth Social network that “Companies and Corporations should no longer be forced to ‘Report’ on a quarterly basis (Quarterly Reporting!), but rather to Report on a ‘Six (6) Month Basis.’ This will save money, and allow managers to focus on properly running their companies.”

“In principle, I think to propose change in what our rules are now, I think would be a good way forward, and then we’ll consider that and move forward after that, so I welcome the president’s putting this up for discussion,” Atkins said Friday morning on CNBC.

Atkins noted, however, that “for the sake of shareholders and public companies, the market can decide what the proper cadence is.”

Housing Giant Lennar Looks to Rate Cuts to Stimulate Demand After Earnings Miss

September 19, 2025 10:49 AM EDT

Shares of Lennar (LEN) slid Friday after the company’s earnings missed estimates, pointing to weakness in the housing market.

The housing giant’s stock dropped nearly 6% in early trading, making it one of the worst-performing stocks in the S&P 500 Friday, before recovering some of its losses later in the session.

Lennar reported adjusted earnings per share of $2 on revenue that fell over 6% year-over-year to $8.81 billion in its fiscal third quarter. Both figures fell short of analysts’ estimates compiled by Visible Alpha.

CEO Stuart Miller said the performance reflected “both the continued pressures of today’s housing market and the consistency of Lennar’s operating strategy,” which included incentives to encourage buyers hesitant because of high interest rates.

Miller added that even though mortgage rates remained high during the quarter, they declined near the end of the period. He suggested that this trend, combined with the Federal Reserve’s recent rate cut, “gives us optimism as we head into the fourth quarter.” He said that “now is a good time to moderate our volume and allow the market to catch up.”

Shares of Lennar have lost about 1% in 2025 so far.

–Bill McColl

Citi Downgrades Intel Stock to ‘Sell’

September 19, 2025 09:39 AM EDT

Citi is not a believer in Intel’s stock.

Analysts at the bank downgraded the chipmaker’s shares to “sell” from “neutral,” because of “Intel’s valuation and our belief that the stock is pricing in success in its leading-edge foundry business, which we believe has minimal chance to succeed.”

The analysts added that “INTC stock is up roughly 50% since early August on the Nvidia deal and speculation that a foundry deal is next. We disagree given our belief that Intel’s foundry is years behind [Taiwan Semiconductor Manufacturing Co. (TSM)].”

Intel shares, which soared nearly 23% yesterday after Nvidia (NVDA) said it would invest $5 billion into its struggling rival, were down about 1% at the open.

-CORRECTION: The headline and lede have been updated to reflect Citi downgraded Intel.

Apple’s iPhone 17 Goes on Sale Globally; Strong Demand Reported for Pro Models

September 19, 2025 07:56 AM EDT

Apple’s (AAPL) iPhone 17 lineup went on sale Friday, reportedly drawing long lines of customers in Europe and Asia amid strong demand for the new products—especially for the Pro models.

The tech giant introduced the lineup earlier this month and opened them up for pre-orders, with the new phones including a thinner model, the iPhone Air, as well the more expensive iPhone 17 Pro, Pro Max, and iPhone Air. New Apple Watch and AirPods models were also unveiled. The iPhone 17 Pro is selling for $1,099, up $100 from the iPhone 16, with storage of 256 gigabytes, or double the previous model’s, and a longer battery life.

The phones had met with mixed reaction from analysts, with some, like Morgan Stanley, calling the iPhone Air “a small positive surprise.” Others said they are waiting for AI-powered updates to the lineup that could give Apple’s stock, the sole decliner among the Magnificent 7 tech giants this year, a bigger catalyst for gains. 

The shares have been under pressure amid Wall Street concerns that the tech firm has been slow out of the gate in the AI race, with even the new devices lagging at a time when analysts increasingly are touting wearables like smart glasses as a key device to access the technology. Apple has also been increasingly losing ground in China, the world’s largest smartphone market, to domestic rivals like Huawei and Oppo.

According to CNBC, demand is especially strong for the Pro and Pro Max models, with lines in London “notably longer” than they were for the iPhone 16 and consumers in Beijing queuing up the night before to get their hands on the models following strong pre-order sales in China.

Read the full story here.

–Nisha Gopalan

US Stock Futures Little Changed After Indexes Hit Record Highs

September 19, 2025 07:27 AM EDT

Futures tied to the Dow Jones Industrial Average were near flat.

S&P 500 futures rose less than 0.1%.

Nasdaq 100 futures also gained less than 0.1%.