Midday Market Highlights: Notable Stock Movements
As the midday trading session unfolds, several companies are making headlines for various reasons:
Quantum Computing Decline
Quantum computing stocks experienced a downturn following comments from Meta Platforms’ CEO Mark Zuckerberg, who tempered expectations surrounding this emerging technology. Rigetti Computing saw a significant drop of 27%, while D-Wave Quantum plummeted by 32%. Additionally, the Defiance Quantum ETF fell by 2.5%.
Nvidia and Semiconductor Stocks Take a Hit
The semiconductor sector faced challenges after the Biden administration announced new export restrictions on artificial intelligence chips. Nvidia’s shares declined by over 2%, the VanEck Semiconductor ETF dropped 1.4%, and Micron Technology experienced a nearly 5% decrease.
Moderna Stock Slides
Shares of Moderna fell by more than 20% after the company revised its 2025 sales projections, anticipating a downward adjustment of around $1 billion, estimating revenue to be between $1.5 billion and $2.5 billion. The majority of earnings are expected in the latter half of the year.
Cryptocurrency-Related Stocks Fall
In the cryptocurrency market, stocks associated with digital currencies dropped as Bitcoin plummeted by over 3%, briefly dipping below $90,000. Coinbase shares declined nearly 5%, Mara Holdings slipped close to 7%, and MicroStrategy saw a 4% decrease in its stock value.
Pinterest Shares Decline After Downgrade
Pinterest’s stock fell 4% following Jefferies’ downgrade of the company to a hold rating. The bank expressed concerns about Pinterest’s growth, describing it as “underwhelming” and adjusting forecasts for the company’s revenue and EBITDA for the 2025 fiscal year.
Edison International’s Shares Slide
Shares of Edison International dropped by 13% due to ongoing investigations related to wildfires in Los Angeles. Authorities are examining whether infrastructure from its Southern California Edison subsidiary may have sparked a brush fire.
E.l.f. Beauty Gains Momentum
In contrast to many moving downward, E.l.f. Beauty’s stock rose by 4% after Morgan Stanley upgraded its rating from equal weight to overweight. The bank noted that following a pullback, E.l.f.’s valuation is now more appealing.
Howard Hughes Holdings Soars
Howard Hughes Holdings experienced a notable surge of 9% after investor Bill Ackman proposed a merger deal offering current stockholders $85 per share. Ackman suggested forming a new subsidiary under Pershing that would merge with the Texas-based real estate developer.
Managed Care Stocks Rise
On a positive note, managed care stocks saw an uptick following the U.S. government’s recent proposal to increase reimbursement rates for Medicare Advantage plans by an average of 4.3% for 2026. Humana’s stock climbed by 8%, CVS Health rose by 6%, and UnitedHealth gained 4%.
U.S. Steel Surges on News of Potential Bid
U.S. Steel’s shares jumped by 8% after CNBC reported that Cleveland Cliffs and Nucor are considering a takeover bid for the company, which faced a block on its acquisition deal with Japan’s Nippon Steel. Both Cleveland Cliffs and Nucor saw their stocks rise by about 4% each.
Tech Giants Decline Under Rising Yields
Shares of megacap technology companies fell as U.S. Treasury yields increased. Nvidia, Apple, and Meta Platforms all dropped by about 2%, while Microsoft and Alphabet experienced a 1% decline.
Intra-Cellular Therapies Skyrockets
Intra-Cellular Therapies’ stock soared by 34% after it was announced that Johnson & Johnson would acquire the drugmaker for $132 per share, representing a 39% premium based on Friday’s closing price and valuing the company at $14.6 billion. Johnson & Johnson’s stock remains steady.
Abercrombie & Fitch Faces Challenges
Abercrombie & Fitch’s stock fell nearly 18% after the retailer’s updated fourth-quarter forecast disappointed investors. The company expects net sales growth to be between 7% and 8%, a downgrade from its earlier estimate of 5% to 7%. This cautious outlook signals potential growth stagnation during the crucial holiday season.
Macy’s Stock Declines
Lastly, Macy’s shares fell over 7% after the company indicated that it anticipates net sales for the fiscal fourth quarter to be at the lower end of its previous guidance. Comparable sales have been described as “roughly flat,” impacted by stores not included in the company’s future strategic plans.
