S&P 500 Gains and Losses: Highlights and Key Drivers

S&P 500 Gains and Losses: Highlights and Key Drivers

KEY TAKEAWAYS:

• The S&P 500 climbed 0.9% on Tuesday, Jan. 21, following President Donald Trump's return to office.
• Oracle surged 7.2% on AI investment news, while Walgreens fell 9.2% due to a Justice Department lawsuit.
• Industrial and nuclear power stocks outperformed, while energy lagged.

MARKET OVERVIEW:
U.S. equity markets opened the week on a positive note, driven by optimism over President Trump's initial policy moves and absence of expected tariffs. The S&P 500 rose 0.9% to 6,049.2, the Dow Jones Industrial Average jumped 1.2% to 44,025.8, and the Nasdaq Composite gained 0.6% to 19,756.8.

Industrials led the sectors, supported by policy-driven optimism around energy and infrastructure. Energy stocks were the only sector to close in the red.

Top Gainers:

1. Vistra (VST): +8.5%

   • Driver: Recovery from operational disruptions after evacuation orders tied to a fire at a plant in California were lifted. Optimism over increased focus on nuclear power under Trump's energy policy also boosted the stock.

2. Oracle (ORCL): +7.2%

   • Driver: Reports surfaced of Oracle’s involvement in a $500 billion AI infrastructure joint venture, "Stargate," alongside SoftBank and OpenAI. The project underscores Oracle's growth potential in the AI sector.

3. Prologis (PLD): +7.1%

   • Driver: Strong Q4 performance driven by rising demand for warehouse space as companies prepare for potential tariffs. Prologis also benefitted from a sale of a data center in Chicago.

4. NRG Energy (NRG): +6.7%

   • Driver: Along with Vistra, NRG shares soared due to optimism surrounding nuclear power expansion under the new administration's energy policies.

Top Losers:

1. Walgreens Boots Alliance (WBA): -9.2%

   • Driver: Walgreens faced a significant lawsuit from the U.S. Department of Justice, alleging the improper dispensation of opioids and other medications due to pressure on pharmacists.

2. Booking Holdings (BKNG): -4.9%

   • Driver: A reversal of last week's gains as analysts raised concerns about competition and the company's reliance on lead generation despite AI-driven innovations.

3. First Solar (FSLR): -4.9%

   • Driver: Challenges in international solar equipment markets, particularly in India, along with uncertainties in renewable energy policies under the Trump administration, weighed on the stock.

4. Apple (AAPL): -3.2%

   • Driver: Downgraded by Jefferies and Loop Capital, citing near-term challenges in consumer demand and competition