Midday trading saw sharp moves across technology, healthcare and industrial stocks, led by renewed momentum in semiconductors and company-specific catalysts ranging from upgrades to clinical updates. At the same time, several drugmakers and a real estate investment trust faced pressure tied to regulatory scrutiny and transaction news.
Key takeaways
- Semiconductor stocks surged, with the VanEck Semiconductor ETF moving toward its best quarter on record; individual names like KLA and Applied Materials gained as chip sentiment improved.
- Watts Water Technologies rallied after a Barclays upgrade to overweight, with the firm pointing to data-center plumbing and cooling demand.
- Abivax jumped on new ulcerative colitis treatment data showing malignancy rates in line with expectations and a sizable remission rate among initial non-responders.
- Air Products climbed after deciding not to proceed with its Louisiana Clean Energy Complex, while taking pretax charges.
- A drugmakers probe and deal activity weighed on shares, including a U.S. House committee probe tied to trials in China and Digital Realty’s planned data center stake purchase.
Semiconductors gain traction as ETF momentum builds
Semiconductor-related names rallied as the VanEck Semiconductor ETF approached what could be its strongest quarter on record, with the fund last up more than 3% on the day and on pace for a 70% rise in the second quarter. Within the group, Astera Labs gained about 7%, KLA rose around 8%, and Applied Materials added roughly 5%, reflecting broad buying rather than a single-stock driver.
The ETF’s momentum suggests investors were leaning into the sector despite the absence of a single widely reported catalyst for the individual chip names during the midday session. The strongest performance clustered among equipment and infrastructure-linked semiconductors, a pattern that typically aligns with expectations for sustained capital spending across the supply chain.
Upgrades, clinical data and regulatory overhang drive healthcare moves
Watts Water Technologies jumped more than 7% following a Barclays upgrade that raised the stock to overweight. The brokerage said Watts is “best positioned” within its waste and water technology coverage group to benefit from the data center capital expenditures cycle. The upgrade centered on the company’s product portfolio serving data center plumbing, drainage and cooling needs as hyperscalers and data center operators expand capacity.
Abivax shares surged about 40% after the company released new data for its ulcerative colitis treatment. The update indicated malignancies were in line with expected rates. Abivax also said that more than 37% of patients who initially did not respond achieved clinical remission after roughly 10 months of treatment using a 50 mg dose. The magnitude of the remission outcome for initial non-responders appeared to be the key driver for the stock’s move.
Elsewhere in healthcare, Merck and AbbVie each declined modestly—each down less than 1%—after Reuters reported that a U.S. House committee began a probe into whether the companies were involved in trials conducted in China that reportedly aided the country’s military capabilities. Investors were likely reacting to increased regulatory scrutiny risk, even as the story did not cite a direct near-term financial impact or a specific resolution timeline.
Industrial and real estate stocks react to project decisions and deals
Air Products and Chemicals rose more than 8% after it said it would not move forward with its Louisiana Clean Energy Complex. Management said expected financial returns for the project would not meet internal criteria, and that this shortfall contributed to the decision. The company also indicated it will record up to $2.9 billion in pretax charges in fiscal third quarter—an additional cost that was still outweighed by investors’ focus on the avoided future commitment to a project that failed to clear return thresholds.
In data center real estate, Digital Realty Trust fell nearly 5% after agreeing to purchase a stake in three fully leased data centers from Blackstone for $7.8 billion. The transaction implies continued investor appetite for stabilized, leased assets, but the stock traded lower on the day of the deal—often consistent with concerns about valuation, funding costs or the timing of accretion for shareholders.
Zimmer Biomet shares slid about 7% after Pacira BioSciences announced it will sell its Iovera pain therapy system to Zimmer Biomet for $140 million. The deal size and strategic implications were the primary focus, with traders weighing whether the acquisition aligns with Zimmer Biomet’s growth priorities and whether it supports margins over time.
Other notable midday movers
SolarEdge jumped about 7% after Reuters reported, citing people familiar, that the Trump administration is working on a ban against imports of foreign inverter systems. Enphase Energy rose about 2% alongside the broader read-through to inverter-related policy expectations, though the report did not outline final timing or scope.
AeroVironment surged around 17% after reporting an earnings and revenue beat. The company earned $1.84 per share on revenue of $642 million, while analysts polled by LSEG expected profit of $1.46 per share on revenue of $559 million. The results suggested stronger-than-anticipated demand or execution, helping the stock reverse course during midday trading.
In other moves, Strategy—often viewed as a crypto proxy—fell roughly 7% and gave back part of Monday’s gains. Bitcoin also dropped more than 3%, trading around $58,430, underscoring that risk sentiment toward the group remained tied to digital-asset price action. Sellas Life Sciences lost about 4% after earlier gains faded; the stock had risen nearly 25% on Monday following a disclosure of changes to employment agreements with several C-suite executives, including severance benefit revisions.
Investors will likely watch for additional guidance and follow-through across semiconductors and data-center infrastructure, while healthcare participants will stay focused on regulatory developments and the durability of clinical read-throughs. With the mid-quarter trading window underway, upcoming catalysts to monitor include company earnings reports, sector-specific commentary on capital spending, and further updates from U.S. policy and oversight processes mentioned in recent reports.
