Stocks and sectors moved sharply in midday trade, driven by a mix of clinical trial updates, deal speculation in utilities, guidance disappointments in consumer finance, and broad selloffs across parts of the technology complex. Amylyx Pharmaceuticals surged on positive Phase 3 results, while Meta Platforms slipped amid the start of a high-stakes trial tied to lawsuits over youth harm claims.
Key takeaways
- Amylyx Pharmaceuticals shares jumped 53% after avexitide met its primary and secondary endpoints in a Phase 3 trial.
- AI- and photonics-linked stocks fell as investors rotated to a more risk-off stance, pressuring names including Coherent, Lumentum, and Ciena.
- Klarna dropped 21% following weak third-quarter and full-year guidance.
- UGI surged more than 12% on a report that KKR was preparing a $9 billion bid, briefly halting trading for volatility.
- Duolingo rose 7% after an analyst upgrade to buy, pointing to an inflection nearing in user and monetization dynamics.
What drove the biggest movers
Amylyx Pharmaceuticals surged 53% after the company said its avexitide treatment met its primary endpoint and all secondary endpoints in a Phase 3 trial. The drug is designed as a GLP-1 receptor agonist therapy for post-bariatric hypoglycemia. The market reaction suggests investors viewed the trial readout as an important step toward potential regulatory progress.
Meta Platforms fell 3% as a key trial began on Tuesday in which multiple states are suing the company over alleged harm to children and teens. Meta’s legal position, previously stated through its attorneys, is that damages could reach up to $1.4 trillion if the plaintiffs prevail. The opening of the trial adds a new catalyst to a case that investors will likely track closely for evidence, potential remedies, and any implications for product design and compliance costs.
Carvana slid more than 3% after filings showed stock sales by two directors. Company reports delivered to the SEC indicated Danforth Quayle sold 14,525 shares and Ira Platt sold 30,000 shares late last week. The move lower reflects how insider selling can weigh on sentiment even when company fundamentals have not changed.
UGI jumped more than 12% after The Wall Street Journal reported, citing people familiar, that KKR made a $9 billion bid to take over the utility. Trading was briefly halted for volatility at one point. The stock’s sharp reaction underscores how deal-related headlines can dominate near-term pricing, while the uncertainty around bid terms and timing remains a key variable for investors.
Guidance disappointments and earnings pressure
Klarna tumbled 21% after issuing weak guidance for the third quarter and the full year. For Q3, the company forecast revenue between $940 million and $980 million, while analysts surveyed by FactSet expected $1.11 billion. Klarna also reduced its 2026 gross merchandise value guidance. The magnitude of the move indicates the market focused on both near-term revenue visibility and the credibility of medium-term growth assumptions.
Baidu fell 12% after results for the second quarter came in below expectations. According to the company’s reported figures, earnings per average diluted share were 7.22 yuan versus a FactSet consensus of 9.35 yuan. Revenue was 31.33 billion yuan, also below an estimate of 31.78 billion. Investors appeared to respond to both the profit and revenue shortfalls, increasing pressure on forward guidance as the market looks for signs of operating leverage.
Home Depot edged higher after the retailer posted fiscal second-quarter results that beat expectations on both the top and bottom lines and reaffirmed its full fiscal year guidance. Adjusted earnings were $4.92 per share versus an analyst expectation of $4.73, and revenue came in at $47.86 billion against a forecast of $47.27 billion. The stock’s modest gain suggests confidence in the guidance remains intact, but expectations for subsequent quarters will still be closely monitored.
AI-related weakness and broader tech impact
Artificial intelligence-linked stocks broadly declined in Tuesday’s trading as investors adopted a risk-off posture. Photonics names were among the hardest hit, with Coherent and Lumentum down about 12% and 9%, respectively. Optical networks stock Ciena fell around 10%, while Teradyne slid 9%. AI cloud computing play CoreWeave also declined about 9%.
Memory chipmakers were pressured as well. Micron Technology and SK Hynix were down nearly 7% and 8%, respectively, while SanDisk shares dropped more than 8%. The breadth of weakness across semiconductors and infrastructure-linked AI beneficiaries points to investors repricing exposure to the tech buildout trade, rather than targeting a single company-specific issue.
Fabrinet declined more than 20%. The company said “usual Q1 expense seasonality” is expected to create a temporary margin headwind in fiscal Q1 2027, according to StreetAccount. The market response suggests investors weighed the margin drag more heavily than any offsetting longer-term visibility at this stage.
Analyst actions in focus
Duolingo rose 7% after D.A. Davidson upgraded the stock to buy from neutral. The firm said it believes the market has historically priced risks tied to daily active user deceleration and monetization issues, and that the company is nearing a turning point. Upgrades like this can help shift near-term sentiment, especially when investors are waiting for evidence that engagement and monetization trends are stabilizing.
What to watch next
With midday moves driven by trial timelines, deal speculation, and guidance revisions, investors will likely focus on follow-through from clinical and litigation catalysts—along with any additional commentary around margins and forward demand in the semiconductor and AI supply chain. In the near term, upcoming earnings updates and the next wave of macro data and central bank signals should further shape risk appetite across growth and cyclical sectors.
