Major U.S. stock indices closed higher, led by gains in communication services, technology, and consumer discretionary sectors, with Meta Platforms surging 11% on renewed AI-driven chip demand, boosting chipmakers like Intel and AMD. Meanwhile, energy and fertilizer stocks declined amid falling oil prices and potential U.S.-Belarus potash deals, while European markets saw declines in shares like Novo Nordisk amid cautious investor sentiment.
As the trading day neared its close, major U.S. stock indices showed strong gains, reflecting a risk-on sentiment in the market. The Dow Jones Industrial Average rose by about 370 points, closing above 52,000, while the S&P 500 increased by 1.5%, and the Nasdaq Composite surged 2.2%, with the Nasdaq 100 up 2.8%. Sector-wise, communication services, information technology, and consumer discretionary led the gains, whereas energy stocks lagged due to a decline in crude oil prices, with Brent futures down 3.5% and WTI falling nearly 4.7%.
Among notable stock movements, Warner Brothers Discovery surged nearly 11% amid progress in settlement talks with California officials over its planned acquisition, signaling one of the largest mergers in Hollywood history. Meanwhile, critical metals company Carmella saw its shares soar as much as 43%, driven by geopolitical developments including a U.S. agreement with Denmark over Greenland, which heightened interest in Arctic security and critical minerals. However, the stock remains volatile with a significant short interest.
Meta Platforms was a standout performer, jumping 11% in a single day, fueled by renewed excitement around AI agents like Muse that are boosting demand for semiconductor chips. This enthusiasm extended to chipmakers as well, with Intel rising 12% and AMD nearly 10%, both benefiting from increased demand for CPUs needed to power AI inference tasks. Meta’s surge marked its largest one-day gain since April 2025, underscoring the market’s focus on AI-driven growth.
On the downside, fertilizer stocks declined following news of a potential U.S. deal with Belarus on potash, despite analysts suggesting limited impact. CF Industries fell 3.5%, and UPS shares dropped 4.4% after Bank of America lowered its price target and earnings estimates, citing reduced domestic volumes and declining Amazon shipments. Concerns also lingered about the expiration of a trade truce, which could further pressure logistics companies like UPS and FedEx.
In Europe, Novo Nordisk shares fell about 8% after disappointing investors with a lack of concrete turnaround plans despite pledges to launch new blockbusters and explore acquisitions. Meanwhile, bond yields mostly declined except for a slight uptick in the two-year yield, reflecting cautious positioning ahead of upcoming macroeconomic events. Notably, AMD joined the $1 trillion market cap club, highlighting the significant investor enthusiasm around semiconductor companies benefiting from the AI boom.