U.S. stocks moved in a narrow range as company-specific headlines dominated sentiment, balancing gains in technology names against a slide in semiconductors and other cyclical sectors. Microsoft shares rose nearly 4% after Pershing Square’s Bill Ackman disclosed that he has been accumulating the stock since it fell on the company’s second-quarter earnings release; Ackman did not reveal the stake size in a lengthy post ahead of his fund’s 13F filing, but argued the valuation is highly compelling, according to CNBC. ServiceNow also advanced, climbing nearly 5% after unveiling a multiyear partnership with Experian to develop autonomous AI agents.
The day’s trading was less forgiving for Ford, whose stock fell about 7% after a prior run of outsized gains tied to its battery-storage ambitions within the broader AI narrative. Investors previously pushed the shares higher by more than 20% in recent sessions, but analysts on Friday said the gains appeared driven more by enthusiasm around the strategic plan than by near-term fundamentals. RBC analysts estimated the unit could eventually be worth $1 billion to $5 billion.
In contrast, Applied Materials slipped about 2% despite delivering fiscal second-quarter results that topped expectations on both the top and bottom lines. The semiconductor equipment maker earned $2.86 per share, excluding items, on revenue of $7.91 billion, vs. the consensus of $2.66 per share on $7.65 billion in revenue from a survey of analysts by LSEG.
Beyond individual names, the broader chip complex pointed lower as investors rotated away from earlier semiconductors-driven momentum. The iShares Semiconductor ETF was on pace to end a six-week winning streak, with Marvell Technology down about 3% and Intel off nearly 7%. ASML and Arm fell roughly 5% and 8%, respectively, while Advanced Micro Devices declined about 4%.
Cerebras Systems, the Nasdaq debut previously propelled higher, pulled back 5% after a 68% surge on Thursday. In other corners of the market, Starbucks rose less than 1% after the company said it would lay off about 300 U.S. corporate employees in its third round of cuts since CEO Brian Niccol took over.
Figma, the collaborative interface design platform, jumped nearly 9% after posting first-quarter earnings of 10 cents per share on an adjusted basis and revenue of $333 million. Analysts polled by LSEG had expected 6 cents per share on $313 million in revenue, underscoring a stronger-than-expected demand for the company’s design tools.
Magnum Ice Cream shares climbed more than 17% after Reuters reported that Blackstone and CD&R were among the firms discussing a bid for the company, with potential suitors waiting for summer sales data before moving forward.
DexCom gained almost 8% after the diabetes-management company said it would work with Elliott Investment Management to identify two new independent directors to join the board, a governance move that investors often interpret as a signal of strategic flexibility.
Papa John’s International rose more than 4% after Reuters reported that the company’s largest franchisee is exploring a take-private transaction. Irth Capital is working with the franchisee, which owns 10% of domestic stores, to pursue a buyout.
Gemini Space Station, the Winklevoss–led crypto exchange, jumped 10% after reporting a $100 million strategic investment from Winklevoss Capital Fund. The company also posted first-quarter revenue ahead of expectations and a narrower-than-expected loss, according to FactSet data.
On the downside, Freeport-McMoRan fell almost 5% as metals sold off broadly in Friday trading. Gold and silver dropped roughly 3% and 9%, respectively, while copper declined about 5% in an ongoing commodities backdrop that has weighed on miners and related equities.
Key takeaways
- Microsoft up ~4%: Ackman disclosed accumulation ahead of 13F filing; catalyst is investor optimism around valuation, according to CNBC.
- ServiceNow up ~5%: Multiyear AI partnership with Experian to build autonomous agents; implication is potential AI-driven growth for the platform.
- Ford down ~7%: Near-term enthusiasm over AI-related battery storage appears to be cooling; RBC pegs a potential unit value of $1–$5 billion, highlighting mixed fundamentals.
- Figma up ~9%: Strong Q1 results beat consensus; earnings and revenue outperformed expectations, signaling solid demand for design tools.
- Gemini Space Station up ~10%: $100 million strategic investment from Winklevoss Capital Fund; signals continued capital inflows into crypto platforms amid improving visibility on revenue and losses.
What drove the move
Stock-specific news dominated the session, shaping sentiment in a market that has been sensitive to AI narratives and technology cycles. In Microsoft’s case, Bill Ackman’s disclosure that he has been accumulating the stock since its post-earnings slide provided a pointer to a potential mid- to long-term re-rating if his stake solidifies, a topic CNBC highlighted as the market weighed valuation against execution risk. ServiceNow’s surge followed a strategic collaboration with Experian aimed at jointly developing autonomous AI agents, a venture that management framed as a means to bolster product capabilities and long-run growth prospects.
Ford’s retreat came after a period of outsized gains driven by AI-related battery storage talk and broader excitement around the auto sector’s pivot to electrification and software; analysts noted the move looks more sentiment-driven than anchored in near-term earnings visibility. On the earnings front, Applied Materials posted results that topped expectations, but the stock still slipped as the broader chip cycle faced renewed selling pressure and a plateau in the semiconductor rally.
In the speculative corner, Figma’s earnings beat — with adjusted earnings of 10 cents a share on revenue of $333 million versus expectations for 6 cents and $313 million — underscored solid demand for collaboration and design software amid a shift toward more remote and hybrid workflows. The rally in Gemini Space Station followed a debt and equity–lite funding tone for crypto platforms, with a $100 million strategic investment flagged by the firm’s management team and investors poring over first-quarter results that beat revenue expectations and showed a smaller loss than feared, according to FactSet data referenced by CNBC.
Market reaction
Equity markets showed a bifurcated tone, with tech-laden names supporting modest gains in portions of the market while semiconductors and industrials faced ongoing selling pressure. The chip complex in particular remained in focus as investors weighed supply-demand dynamics and macro variables. The daily session also left investors with a reminder of how quickly sentiment can flip on a single headline or analyst note, reinforcing the sensitivity of equities to AI-related narratives and valuation revisions.
What analysts are saying
Analysts offered a mix of caution and opportunity. RBC analysts, commenting on Ford’s recent trajectory, estimated that the storage unit could eventually be worth between $1 billion and $5 billion, a range that reflects the uncertain path to profitability amid ongoing cost challenges and competitive pressure. On the earnings beat at Figma, analysts tracked by LSEG had anticipated 6 cents per share on $313 million in revenue, making the 10-cent result a notable upside surprise and a potential signal of durable demand for white-label design tools.
Beyond earnings, investors continued to monitor corporate governance moves and strategic investments as potential signals of longer-term strategy shifts. The DexCom move with Elliott Investment Management to appoint two independent directors, for instance, was framed as a step toward governance alignment that could influence capital allocation decisions in the months ahead.
Bigger picture
The session underscored a market perched between AI-driven optimism and the risk of overheating expectations in certain pockets of technology and growth names. The semiconductors completed a rough patch even as demand for AI-enabled devices and software remains a central theme for portfolio construction. The price movements also dovetail with ongoing macro considerations, including how central banks manage inflation and interest-rate trajectories, which can tilt risk-on versus risk-off sentiment.
Looking ahead, investors will likely focus on upcoming earnings reports and guidance from large-cap techs, as well as the health of AI-related spending and enterprise software adoption. Markets will also remain sensitive to broader macro data releases and any shifts in policy or rhetoric from policy makers that could affect growth trajectories and valuations.
What to watch next: upcoming quarterly results from major technology names, central-bank communications, and key data on inflation and employment. These events will help define whether the AI-driven rotation observed recently can sustain itself or if volatility returns as investors reassess growth and earnings potential.
