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The S&P 500 and the Nasdaq Composite posted gains on Tuesday, ending a three-day decline streak.
The S&P 500 moved up by 0.39%, closing at 5,469.30, while the Nasdaq rose 1.26% to close at 17,717.65. This rebound was significantly driven by Nvidia, which surged 6.7% after a notable drop the previous day.
In contrast, the Dow Jones Industrial Average dipped 0.76%, ending the day at 39,112.16.
Premarket Movers:
| Nvidia (NASDAQ: NVDA) | Stock rose 2.4%, market cap $3.1 trillion, AI role solidified. |
| Rivian (NASDAQ: RIVN) | Stock soared 36%, Volkswagen's major investment. |
| FedEx (NYSE: FDX) | Stock rose 14%, upbeat outlook, $2.5 billion share buyback. |
| Blackstone (NYSE: BX) | Stock fell 0.3%, buying Village Hotels, hospitality sector focus. |
| General Mills (NYSE: GIS) | Stock dropped 4%, mixed quarterly results. |
| Campbell Soup (NYSE: CPB) | Stock added 1%, JPMorgan upgrade to overweight. |
| Chipotle (NYSE:CMG) | Stock fell 0.5%, 50-for-1 stock split. |
| Vista Outdoor (NYSE: VSTO) | Stock rose 10%, MCN Capital's increased bid to $42/share. |
Volkswagen’s Solid Move with Rivian
Volkswagen (GER: VOW3) has announced a significant investment in the electric vehicle startup Rivian (NASDAQ: RIVN), taking a $1 billion stake and planning to form a joint venture that could increase its investment to $5 billion by 2026.
This announcement comes just ahead of Rivian’s investor day and amid growing pressures on Rivian due to recent financial losses. In the first quarter of this year, Rivian reported a loss of $1.45 billion. In response, the company has been aggressively cutting costs, including laying off employees and halting construction of its new Georgia factory. This pause is expected to save Rivian over $2.25 billion in capital expenditures.
U.S. Steel’s Stock Upgrade
United States Steel (NYSE: X) saw its stock rise by 2% on premarket following an upgrade from BMO Capital Markets, which elevated the company’s rating from market performance to outperform.
BMO Capital Markets believes that U.S. Steel is undervalued, even amid uncertainty surrounding its potential sale to Nippon Steel.
Record Home Prices
Home prices in the U.S. have reached a new peak. In April, prices rose by 6.3% compared to the previous year, according to the S&P CoreLogic Case-Shiller National Home Price Index. This marks the second consecutive month where the index has increased by at least 1% over its previous all-time high. Since early 2020, home prices have surged by 47%, with the median sale price now five times higher than the median household income.
Despite slowing rent growth due to new apartment units in 2024, rental prices have climbed 26% since 2020. Consequently, half of all renter households are now considered "cost-burdened," spending more than 30% of their income on housing, as reported by the Housing Justice and Community Housing organization.
