empty
11.06.2025 02:54 PM
Robinhood drops from the S&P 500 — domino effect hits global markets

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.

This image is no longer relevant

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.

Gleb Frank,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

S&P, Nasdaq, and Dow climb in sync as markets digest jobs data and trade developments

The S&P 500 rose by 0.83%; the Nasdaq gained 1.02%; the Dow advanced by 0.77%. US job growth exceeded expectations in June. Tripadvisor rallied on Starboard Value's report. Synopsys

13:11 2025-07-04 UTC+2

US Market News Digest for July 4

The S&P 500 and Nasdaq stock indices rose by 0.83% and 1.02%, respectively, hitting new all-time highs. Index futures, however, retreated due to concerns over the potential introduction

Ekaterina Kiseleva 12:45 2025-07-04 UTC+2

S&P, Nasdaq, Dow rally as markets react to jobs, trade policy surprises

S&P 500 up 0.83%; Nasdaq up 1.02%; Dow up 0.77% U.S. job growth beats expectations in June Tripadvisor rises on Starboard Value report, gaining share Synopsys, Cadence rise as U.S

Thomas Frank 08:23 2025-07-04 UTC+2

What could tip USD: NFP, Fed moves, or Big Beautiful Bill?

Wall Street keeps churning out record after record. On Wednesday, the S&P 500 , driven by IT giants, once again set a fresh all-time high. The catalyst was not only

Svetlana Radchenko 13:17 2025-07-03 UTC+2

US Market News Digest for July 3

The S&P 500 index once again reached an all-time high thanks to sustained demand for technology stocks and a positive reaction to the US-Vietnam trade agreement on tariffs. Investors

Ekaterina Kiseleva 12:58 2025-07-03 UTC+2

Stocks Ride: Nasdaq Jumps, S&P Rises, Dow Falls — There's More Behind It

Nasdaq Closes 0.94%; S&P 500 Up 0.47%; Dow Down 0.02% Centene Falls After Cutting 2025 Outlook Tesla Rises, Rebounds From Early Week Losses Wall Street Futures Up 0.1%, Nikkei Flat

Thomas Frank 10:28 2025-07-03 UTC+2

US Market News Digest for July 2

The S&P 500 index declined by 0.11%, the Nasdaq 100 lost 0.82%, while the Dow Jones rose by 0.91%. Investors are awaiting the release of macroeconomic data that could influence

Ekaterina Kiseleva 12:32 2025-07-02 UTC+2

Tesla falls, European stocks rise

Tesla Shares Fall as Musk-Trump Feud Renews Powell Doesn't Rule Out July Rate Cut Mixed Signals in US Manufacturing Labor and Contracts European Stocks Rise on Wednesday, Led by Industrial

Thomas Frank 10:56 2025-07-02 UTC+2

Stock Market Rises Higher: What's Pushing Dow, Nasdaq, S&P Higher

Bank Stocks Rise After Fed Stress Test Tesla Shares Fall Gold Rises as Oil Prices Fall on OPEC+ Output Expectations Zealand Pharma Gains After BNP Opens Coverage with 'Outperformance' InPost

Thomas Frank 12:11 2025-07-01 UTC+2

US Market News Digest for July 1

Monday's trading ended in positive territory: the S&P 500 rose by 0.52%, while the Nasdaq 100 added 0.47%. The start of the second half of the year unfolded amid optimistic

Ekaterina Kiseleva 11:43 2025-07-01 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.