On Friday, notable movements in the S&P 500 highlighted the ongoing fluctuations in the market, with a mix of advances and declines driven by recent economic developments and company-specific news.
Electronic Arts (EA) emerged as a significant gainer, with shares skyrocketing nearly 15% amid reports that a deal could soon take the video game giant private. The Wall Street Journal cited sources indicating that a consortium involving Saudi Arabia’s Public Investment Fund and private equity firm Silver Lake might be approaching a monumental $50 billion leveraged buyout, potentially marking one of the largest transactions of its kind in history.
In the wake of President Donald Trump’s announcement of new tariffs on various imports, stocks in the truck manufacturing sector saw a positive response. Paccar (PCAR), the parent company of Peterbilt and Kenworth brands, experienced a 5.2% increase. The tariffs aimed at heavy-duty trucks and other imported goods have been a source of uncertainty in the market, though manufacturers such as Paccar anticipate some benefits from these policies.
Intel (INTC) continued its upward trajectory, with a 4.4% gain as fresh speculation about partnerships emerged. Reports indicated discussions between Intel and key industry players like Apple and TSMC regarding investment opportunities. The company’s recent collaboration announcement with Nvidia further fueled investor optimism.
Boeing (BA) shares rose by 3.6% following the Federal Aviation Administration’s (FAA) decision to ease restrictions on the manufacturer’s 737 Max and 787 models. The FAA’s announcement, which allows Boeing to conduct final safety checks on these aircraft, is expected to expedite production and delivery processes, addressing some operational delays that have plagued the company in the past. Additionally, Boeing secured a significant deal with Turkish Airlines for the purchase of 225 aircraft, adding to the positive momentum.
Conversely, several companies faced declines, with Costco (COST) seeing its stock dip by 2.9%. Despite surpassing analysts’ expectations in sales and profits for its fiscal fourth quarter, the company’s same-store sales fell short of forecasts. This has raised concerns regarding consumer behavior and broader economic impacts, particularly in discretionary spending.
Oracle (ORCL) shares fell by 2.7% as analysts from Rothschild Redburn initiated coverage with a “sell” rating, prompting concerns that optimistic market expectations surrounding the company’s cloud operations could be unwarranted. eBay (EBAY) also saw a 2.1% drop, following a strong performance in previous weeks after posting better-than-expected earnings.
Despite Friday’s gains, major stock indexes closed the week lower, with the Nasdaq down about 0.6%, the S&P 500 falling 0.3%, and the Dow Jones Industrial Average slipping 0.1%. All three indexes, however, remain close to their all-time highs, suggesting resilience in the market despite recent challenges.
The fresh tariffs announced by Trump—specifically a 50% levy on kitchen cabinets and a 30% tariff on upholstered furniture—are aimed at boosting domestic manufacturing by addressing what the administration perceives as a flood of imports disrupting the market. This move is part of a broader initiative to reshuffle trade dynamics and protect U.S. industries.
Economists are forecasting that inflation will continue to rise in the fourth quarter, driven in part by these new tariffs, which are expected to lead to higher consumer prices. The Consumer Price Index is projected to rise by 3% year-on-year—signifying a potential increase in economic pressure as businesses look to pass on tariff costs to consumers.
In summary, while the market displayed volatility with significant movers in both directions, larger economic factors and policy implementations are likely to dictate future market behavior as companies adapt to the evolving landscape.
