Midday trading saw sharp moves across energy, consumer and technology stocks, driven by a mix of geopolitics, deal speculation and company-specific updates. Oil-linked shares climbed after reports of heightened Iranian activity affecting tanker routes, while Chipotle rallied on a report that Starbucks explored an acquisition of the burrito chain. Elsewhere, GlobalFoundries jumped on a new manufacturing agreement, and Palantir gained after a Wall Street upgrade.
Key takeaways
- Energy stocks surged: Oil prices rose after reports of increased Iranian attacks on tankers, lifting major refiners and producers.
- Deal speculation boosted Chipotle: A Financial Times report said Starbucks explored acquiring Chipotle, pushing Chipotle shares higher while Starbucks fell.
- GlobalFoundries gained on supply agreement: The semiconductor maker rose after announcing a multiyear $2 billion manufacturing deal with Taiwan Semiconductor Manufacturing Company.
- AI and data-center names mixed: Risk-off trading weighed on parts of the AI complex, while select winners were supported by upgrades or operational developments.
- Palantir outperformed on upgrade: Goldman Sachs upgraded the stock to buy, citing a potentially expanding market opportunity.
What drove the market moves
Geopolitics supported energy: Shares tied to the oil complex advanced after oil prices jumped on reports that Iran ramped up attacks on tankers transiting the Strait of Hormuz. The move translated into broad gains among U.S. energy companies, with Marathon Petroleum and APA up more than 4%. Diamondback Energy rose about 3%, and Chevron gained more than 2%.
Acquisition talk lifted consumer and hit Starbucks: Chipotle shares rose more than 6% after the Financial Times reported that Starbucks explored acquiring the burrito chain. Starbucks, however, was last down about 5% on the day, underscoring how deal chatter can produce divergent reactions between the buyer and target.
Corporate guidance weighed on Levi: Levi Strauss shares fell for a second straight day after the company cut its full-year net revenue growth forecast to the lower end of its prior guidance range. Levi last traded down about 3% following the change.
Capital spending and platform rollout shaped select tech and biotech: GlobalFoundries surged nearly 5% after announcing a multiyear manufacturing agreement worth $2 billion with TSMC for silicon interposers, with production expected to begin in the first half of 2028. In healthcare, Haemonetics jumped roughly 16% after CSL indicated it expects to complete the rollout of Haemonetics’ plasmapheresis platform across the U.S. by the end of 2027.
Market reaction across sectors
Energy: The strongest momentum clustered in refiners and producers as crude strength fed through to earnings expectations for firms exposed to higher commodity prices. Alongside Marathon Petroleum, APA and Chevron, Diamondback Energy also posted gains.
Media and entertainment: Skydance—described as newly formed from the Paramount Skydance and Warner Bros. Discovery deal—traded more than 4% higher after co-CEO David Ellison told CNBC the company is “positioned to win in every single vertical that we operate in.” Investors appeared to reward confidence about broader platform opportunities across media categories.
AI and semiconductors: Trading reflected a cautious tone in parts of the AI complex. The iShares AI Innovation and Tech Active ETF headed for a second straight losing session, down more than 1% as investors reportedly adopted a risk-off posture. Photonics names including Coherent and Lumentum fell, and Bloom Energy slid nearly 5%, highlighting weakness in select hardware and power-exposure corners.
At the same time, specific single-name catalysts supported upside in other semiconductor-related stocks. GlobalFoundries’ contract with TSMC was a notable outlier to the broader caution in AI-linked exchange-traded exposure.
Software and deal-driven upgrades: Palantir rose more than 2%, bucking the broader tape, after Goldman Sachs upgraded the stock to buy. According to the bank, the total addressable market may be set up for another step change as the industry shifts toward sovereign AI and bespoke applications, and it pointed to Palantir’s durability amid competitive investments.
Company updates that mattered to investors
Applied Digital and the AI trade: Applied Digital fell nearly 2% despite reporting fiscal first-quarter revenue of nearly $342 million, up 322% year over year. The stock’s weakness appears tied to broader selling pressure in AI-related trades. The company also highlighted rapid ramping in its AI data-center business and said its CEO recently cited a Tier 1 hyperscaler developing a roughly 1-GW self-build data center in North Dakota—another reminder of ongoing demand for AI infrastructure.
Broadcom’s financing efforts: Broadcom traded about 1% lower. A Wall Street Journal report said the chipmaker is working to arrange more than $50 billion in financing tied to custom AI chips it is developing with OpenAI, a development that may keep attention on capital requirements as companies scale AI workloads.
Levi’s growth forecast cut: Levi’s decision to lower its full-year net revenue growth forecast signaled more conservative expectations for demand and pricing. Shares were down about 3% at the latest quote, following another day of declines.
Bigger picture: what to watch next
With oil-sensitive shares reacting to geopolitical developments in the Strait of Hormuz, investors are likely to monitor further news on shipping disruptions and regional escalation. In company-specific trading, the next catalysts include upcoming earnings releases and guidance updates—particularly for consumer names affected by deal speculation and retailers adjusting revenue outlooks. On the macro side, continued shifts in interest-rate expectations can influence sentiment toward growth and AI-linked equities, while any follow-through on AI-capex announcements may determine whether today’s winners broaden or fade.
