Stocks and sectors shifted sharply in midday trading as investors digested a mix of company-specific catalysts and geopolitical developments. Semiconductor-related names were mixed after a reported ramp-up in China’s domestic deep ultraviolet chipmaking tools, while SAP jumped on an expanded share repurchase plan. Elsewhere, energy shares eased alongside oil following a U.S.-Iran pause on attacks, and biotech stocks swung on deal activity and clinical trial results.
Key takeaways
- Semiconductor and memory stocks were volatile: ASML fell 8% amid a China production push, while China-based memory chipmaker CXMT surged more than 466% after its public debut.
- SAP shares rallied on buybacks: SAP rose more than 7% after announcing it would begin the second phase of a 10 billion-euro stock repurchase program.
- Energy stocks declined with crude: Chevron and ExxonMobil fell about 1% each as oil slipped after the U.S. and Iran agreed to pause attacks.
- Biotech outcomes drove large swings: Forte Biosciences surged about 40% on an Argenx acquisition, while MapLight Therapeutics plunged 68% after Phase 2 results missed a primary endpoint.
- Analyst and earnings catalysts mattered: Baker Hughes gained 6% after posting better-than-expected quarterly results, while Rivian jumped 5% after a Piper Sandler upgrade.
What moved stocks midday
Semiconductors and memory were a focal point. ASML, which supplies semiconductor manufacturing equipment, slid 8% following a report that China has begun mass production of domestically made deep ultraviolet chipmaking tools. In memory-related trading, shares rose broadly after China-based chipmaker CXMT began trading publicly in Shanghai, surging more than 466%. The move came alongside declines in several other memory names, including SK Hynix, SanDisk, and Micron Technology, which fell by more than 8%, about 11%, and around 5%, respectively.
Enterprise software saw a notable single-name jump. SAP’s ADRs rose more than 7% after the company said it would start the second part of a 10 billion-euro share buyback program first announced in January, according to FactSet’s StreetAccount service.
Energy stocks softened with oil. Shares in major oil producers edged lower after the U.S. and Iran agreed to pause attacks against each other, at least for now. Chevron and ExxonMobil were both down about 1%, while APA and Devon Energy retreated between roughly 1% and 3%.
Biotechnology remained highly reactive to transaction and trial headlines. Forte Biosciences rallied about 40% after agreeing to be acquired by Argenx of Holland for $2.2 billion in cash, or $77 per share. The deal terms represented a 40% premium to Forte’s prior close of $54.78, with closing expected in the third quarter. U.S.-listed Argenx shares were down about 2%.
In contrast, MapLight Therapeutics plunged 68% after Phase 2 results for its once-daily schizophrenia treatment failed to meet the trial’s primary endpoint, the company reported, while mild side effects were reported more often than with placebo.
Analyst and earnings catalysts
Electric vehicles reacted to a brokerage note. Rivian Automotive shares jumped 5% after Piper Sandler upgraded the stock to overweight from neutral. The firm’s price target of $20 implied upside of about 26% from Rivian’s prior close. Analysts pointed to the company’s recent lift to delivery guidance and the smooth launch of its R2 SUV as factors supporting the upgrade.
Consumer alcohol moved on corporate actions rather than macro inputs. Brown-Forman climbed almost 4% after it rejected another unsolicited takeover offer from Sazerac. The latest bid, priced at $32 per share and first made earlier this year, was described by Brown-Forman as not “actionable” and not aligned with the board’s “vision for Brown-Forman’s future.” Brown-Forman also said the offer was part of a $15 billion proposal.
Industrial services gained after earnings. Baker Hughes rose 6% after reporting second-quarter earnings and revenue that exceeded expectations. Management also said it expected to reach the midpoint of its full-year guidance, citing “favorable underlying fundamentals” while continuing to manage through uncertainty in the Middle East.
Semiconductor equipment and packaging were mixed. Amkor Technology declined 7% as investors looked ahead to its upcoming quarterly results after the market close. Separately, D-Wave Quantum was up 5% after announcing a partnership with AT&T intended to use its annealing quantum computers to support telecom efforts in artificial intelligence. Other quantum-related names also rose, including IonQ and Rigetti Computing, though the gains were not uniform.
What investors are likely watching next
With traders reacting to a blend of policy and geopolitics, investors will likely keep an eye on follow-through in crude prices after the U.S.-Iran pause. In equities, attention is set to shift from midday movers toward upcoming company catalysts—particularly earnings releases scheduled for later in the session, as well as additional semiconductor and biotech updates that can quickly change expectations for guidance, deal terms, or clinical outcomes.
