U.S. equities hovered between gains and losses at midsession as traders digested a crowded slate of corporate updates and energy headlines. Oracle shares rose more than 9% after the software giant highlighted artificial intelligence capabilities at its Customer Edge Summit, including its Oracle Utilities Opower AI-driven platform. The company said the platform helped residential utility customers save $369 million in 2025, a figure that helped underscore an AI-enabled growth narrative for Oracle’s cloud and applications business.
The mood was more mixed on the earnings front. Conagra Brands fell more than 5% after naming John Brase as chief executive, effective June 1, replacing Sean Connolly. Allogene Therapeutics, a biotech firm focused on CAR‑T therapies, jumped roughly 30% after positive Phase 2 data showing improvements in cancer cell eradication in lymphoma patients. In the broader tech arena, the iShares Expanded Tech-Software Sector ETF (IGV) rose more than 4%, signaling a rebound in software stocks after a stretch of weakness. ServiceNow rallied nearly 7%, Salesforce gained more than 4%, and Microsoft rose about 2% as big-name software and cloud players continued to trade in relief of prior downturns.
Industrial bank Goldman Sachs traded down more than 2% after its fixed income, currencies and commodities unit posted revenue that fell short of expectations, though its overall first-quarter results still beat on earnings and revenue thanks to strength in equities trading and higher investment banking revenues. In a separate show of momentum, Revolution Medicines surged almost 40% after reporting Phase 3 data for a pancreatic cancer drug, with the company saying its daily pill daraxonrasib extended median survival versus chemotherapy in the trial. Williams-Sonoma rose more than 2% following a buy rating from Goldman Sachs, which cited the retailer’s strong brand portfolio and attractive valuation.
Other notable moves included Best Buy sliding about 3% after Goldman downgraded the retailer to sell, citing potential post-quarter headwinds from higher component costs and a pull-forward effect in PC demand. Fastenal dropped nearly 8% after first-quarter earnings that met Street expectations but offered little beyond a cautious outlook. In energy, shares of several producers advanced as crude hovered above $100 a barrel, a move supported in part by the U.S. Navy’s enforcement of a blockade around the Strait of Hormuz. APA Corp rose more than 2%, Phillips 66 added close to 2%, and Chevron edged higher around 1%.
Risk wasn’t confined to energy and consumer discretionary. Cruise lines faced renewed pressure from elevated fuel costs and softer demand signals, with Carnival moving higher around 4% while Norwegian Cruise Line slipped about 3% and Royal Caribbean dipped more than 2%. Airlines also traded lower on Monday amid higher jet fuel prices and demand uncertainties, with United, Delta and Southwest down roughly 2%, 2% and just over 1%, respectively. Palantir Technology rebounded about 4% after a prior sell-off, as investors weighed the potential disruption AI could bring to software business models against the stock’s recent volatility. Leggett & Platt jumped nearly 13% after announcing an all-stock acquisition by Somnigroup International for about $2.5 billion, a deal expected to close by year-end 2026.
Key takeaways
- Price move: Oracle up >9%; Allogene up ~30%; Revolution Medicines up ~40%; Leggett & Platt up ~13%.
- Catalyst: AI showcase and cost savings claims for Oracle; positive Phase 2 data for Allogene; Phase 3 success for Revolution Medicines; M&A activity for Leggett & Platt.
- Implication: Broad AI-driven optimism persists in select software names; biotechnology and M&A headlines are driving pockets of outsized moves; energy and consumer-discretionary stocks remain sensitive to macro-fundamentals and cost pressures.
What drove the move
Investors were focused on a mix of company-specific catalysts and sector trends. Oracle’s rally reflected renewed investor interest in AI-enabled offerings, with the company pointing to cost-saving capabilities from its Opower platform and other AI features within its cloud ecosystem. The reception for Allogene Therapeutics underscored appetite for CAR‑T therapies where early signals can translate into outsized gains on Phase 2 data. Revolution Medicines’ strong Phase 3 results highlighted potential near-term momentum in oncology pipelines, a space where valuation tails can shift quickly on trial outcomes.
On the other side, Goldman Sachs’ pause in a key revenue line weighed on its shares, illustrating how even among broad earnings beats, the mix of revenue sources can influence intraday price action. The downgrade of Best Buy reflected concerns about PC demand dynamics and rising component costs that could pressure margins post-quarter. The energy complex remained a primary driver of broad market sentiment as oil traded above $100 per barrel, with the Strait of Hormuz developments adding another layer of geopolitical risk to the price backdrop.
What analysts are saying
Analysts were quick to split the lens between winners and losers. Goldman Sachs’ downgrade of Best Buy was framed around a near-term pull-forward effect in PC demand and upcoming cost headwinds tied to higher memory prices. Separately, Williams-Sonoma benefited from a buy rating that referenced the brand’s resilient positioning and the potential for multiple-dimensional growth across its home-focused platforms.
Meanwhile, the market’s attention to software and AI themes remained acute. In the face of recent volatility in AI names, investors appeared to be testing the durability of demand for cloud-based platforms and data-driven services, while biotechnology names with meaningful trial data continued to trade on the probability of clinical and commercial milestones.
Bigger picture
The day’s price action underscored two enduring themes for investors. First, AI and data-centric software firms continue to drive volatility as fresh trial data and product rollouts hit market expectations. Second, energy prices and geopolitical risk around key shipping lanes continue to feed through to equities, influencing sectors from airlines to cruise lines and consumer discretionary.
As traders balance stock-specific catalysts with macro dynamics, the risk-on/risk-off rhythm remains sensitive to trial outcomes, management commentary on AI monetization, and any fresh headlines about supply chains or regulatory developments. The broader market will likely remain range-bound until clearer signals emerge from corporate guidance and macro data releases that can illuminate the pace of inflation and the path of policy rates.
Closing thoughts
Going forward, investors will be watching the next wave of earnings reports and any updates on AI-related product launches and partnerships. In energy, continued monitoring of crude trajectories will be key, given their ripple effects on airline and travel-related stocks. For biotech, trial readouts and regulatory milestones will continue to drive volatility and opportunity. Keep an eye on M&A activity as acquisition chatter can reprice multiple names within industrials and consumer sectors.
