Robinhood shares fell after the trading platform was excluded from the S&P 500. Warner Bros. stock declined following the company's announcement of plans to restructure its business. European stocks slid as UBS tumbled, while US-China trade talks loomed. McDonald's shares also declined after Morgan Stanley downgraded the stock. The S&P 500 closed up 0.09%, the Nasdaq gained 0.31%, while the Dow remained unchanged.
Amazon and Alphabet help support S&P 500: investors focused on US-China talks
On Monday, the US stock market showed moderately positive dynamics. The S&P 500 ended the trading session with a slight gain, supported by strength in tech giants Amazon and Alphabet. At the same time, investors are closely monitoring the ongoing dialogue between Washington and Beijing.
Dialogue of two powers: trading on hope
After months of economic tension, US and Chinese officials have resumed negotiations, aiming to strengthen the foundations of a previously signed preliminary trade agreement. This move has instilled cautious optimism in the markets and may become a turning point in the prolonged trade conflict.
Amazon invests billions in AI and infrastructure
Amazon shares rose more than 1% following the announcement of a large-scale investment program. The company plans to invest at least $20 billion to expand its data center footprint in Pennsylvania. These investments complement Amazon's existing spending on cloud solutions and artificial intelligence development.
Key Amazon investments:
Segment Investment Volume
Pennsylvania data centers $20+ billion
AI and Cloud technologies Several billion dollars
Apple fails to impress investors
Unlike Amazon and Alphabet, Apple shares fell 1.2%. The decline was driven by lukewarm reception from developers and investors to the company's announcements at its annual WWDC conference. The updates were seen as evolutionary rather than revolutionary, failing to generate the anticipated excitement in the market.
Warner Bros. Discovery came under selling pressure despite its recent attempt at strategic restructuring. Shares of the media conglomerate dropped approximately 3% after the company announced plans to separate its studio and streaming business from its struggling cable division.
Interestingly, investors initially reacted positively: WBD shares surged 13% before reversing course likely due to lingering uncertainty about the prospects of the new business structure.
McDonald's loses its "extra weight": analysts turn cold on burger giant
McDonald's shares slipped 0.8% after Morgan Stanley downgraded the company's investment rating. The fast-food chain is now rated as "neutral" rather than "overweight."
Reasons for the downgrade:
- Growing competition in the quick service restaurant (QSR) sector
- Signs of saturation in key markets
- Weakening consumer activity
Robinhood misses elite: S&P 500 update brings no surprises
Shares of online broker Robinhood Markets declined nearly 2% after news broke that the company would not be included in the S&P 500 index. This dashed market rumors that had circulated widely ahead of the latest S&P Dow Jones index rebalancing.
Euopean markets: cautious start to week
The pan-European STOXX 600 index opened the day down 0.2%, slipping to 552.41 points. Sentiment across the continent remains subdued.
Financial companies were hit hardest:
| Financial services (.SXFP) | –1.2% |
| UBS Group AG | –3.9% |
The drop in UBS shares was driven by new proposals from the Swiss government, requiring the bank to build an additional $26 billion in capital, a move aimed at strengthening financial sector resilience.
Select Winners
Amid the broader downturn, several companies posted positive performances:
- Novo Nordisk rose on news that activist hedge fund Parvus increased its stake in the company.
- Bellway surged following an upgraded housing construction forecast.
- Abrdn (formerly Aberdeen) led the STOXX 600 after receiving an upgrade from J.P. Morgan.
Defense sector pulls back
European defense stocks continued to decline. The defense subindex (.SXPARO) dropped to its lowest level in eight days, potentially indicating profit-taking after recent gains or a shift in investor priorities.
Oil prices drive energy sector higher
Amid rising oil prices, the energy sector (.SXEP) showed strong positive momentum. The sector index climbed nearly 1%, reacting to the rebound in oil prices and expectations of further supply cuts from OPEC+.
Healthcare on rise
The healthcare sector (.SXDP) gained 0.5%, supported by major pharmaceutical companies.
Novo Nordisk led the advance, with shares of the insulin and obesity drug manufacturer climbing around 3% after Parvus Asset Management, an activist hedge fund, disclosed an increased stake in the company.
Examples of healthcare gains:
| Company | Change | Reason |
| Novo Nordisk | +3% | Parvus fund increased its stake |
| AstraZeneca | +1–2% (estimated) | Market support despite recent news |
| Sanofi | +1–2% (estimated) | Continued investor interest in vaccine producers |
Interestingly, AstraZeneca and Sanofi shares also rose, despite the US Health Secretary's decision to disband the federal vaccine committee, signaling long-term investor confidence in the companies' business models.
Bellway: strong report sparks solid gains
Shares of British homebuilder Bellway (BWY.L) jumped 4.1% after the company raised its full-year housing construction forecast. The upbeat outlook reflects signs of stabilization in the UK housing market despite ongoing macroeconomic uncertainty.
Abrdn surges after JPMorgan upgrade
Aberdeen (ABDN.L) posted the largest gain in the STOXX 600, with shares up 7.5%. The rise followed J.P. Morgan's upgrade of the stock from "neutral" to "overweight," citing positive structural changes in the asset manager's strategy.
