S&P 500, Nasdaq Rise With US-China Trade Talks in Focus as Market Aims to Extend Rally; Chip Stocks Pace Gainers

Archer Aviation, Joby Soar After Trump Executive Order

1 minute ago

President Donald Trump signed an executive order Friday aimed at “Unleashing American Drone Dominance,” and shares of unmanned aircraft manufactures are flying higher Monday.

Shares of Archer Aviation (ACHR) and Joby Aviation (JOBY) each jumped more than 10%, both extending gains from Friday. Space launch services firm Rocket Lab (RKLB) was up about 9%. 

The executive order establishes a pilot program to hasten the adoption of electric vertical takeoff and landing (eVTOL) technology, which companies such as Joby and Archer are utilizing for commercial air taxis and military aircraft, respectively. The policy is meant is to combat “unfair foreign competition [that] has posed a national security risk,” according to a White House fact sheet.

The order also allows for increased testing of “beyond visual line of sight” drone operations, meaning unmanned aircraft could be flown beyond a range where supervisors can directly see them. 

The development of air taxi technology has given rise to a new term: the low-altitude economy. Last week, Morgan Stanley estimated that the LAE could eventually “vastly exceed the size of today’s automotive market” and named Tesla (TSLA) as a potential company to watch in the sector. Tesla hasn’t announced any intention to develop eVTOLs, but CEO Elon Musk has discussed the need for a homegrown low-altitude economy in the U.S.

-Andrew Kessel

Applied Digital Surged 103% Last Week—Watch These Levels

48 minutes ago

Applied Digital (APLD) shares are likely to remain on investors’ radar screens after soaring last week following news of a deal to lease data center space to AI darling CoreWeave (CRWV).

The company said it expects the deal, which will see it host CoreWeave AI infrastructure at its Ellendale, N.D., campus, to generate $7 billion in total revenue over a 15-year period and accelerate its strategic expansion into advanced compute infrastructure. Both Applied Digital and CoreWeave are backed by AI chip giant Nvidia (NVDA).

Applied Digital shares, which gained 103% last week, have more than tripled over the past 12 months, boosted by expectations that the company sits well placed to capitalize on booming demand for AI infrastructure. The stock was down 0.3% in recent trading Monday, at around $13.80.

Applied Digital shares have formed a cup and handle on the chart, with the price staging a decisive breakout above the pattern’s top trendline last week, potentially signaling the start of a new longer-term move higher.

It’s worth pointing out that the rally has occurred on significant trading volume, indicating strong buying conviction from larger market participants. Moreover, the relative strength index confirms bullish price momentum with a reading just below the indicator’s overbought threshold.

Investors should watch important overhead areas on Applied Digital’s chart around $17, $28 and $46.70, while also monitoring a major support level near $10.50.

Read the full technical analysis piece here.

-Timothy Smith

Warner Bros. Discovery Stock Soars on Plan to Split

1 hr 17 min ago

Warner Bros. Discovery (WBD) is splitting into two separate companies, the media conglomerate announced on Monday, sending its shares sharply higher.

The company will split into two separate public companies by the middle of next year. One company, Streaming & Studios, will include the Warner Bros. movie and TV studios along with the recently rebranded HBO Max streaming service, while Global Networks will be made up of WBD’s cable channels like TNT, CNN, and the Discovery+ streaming service.

Warner Bros. Discovery shares were up more than 7% in recent trading, pacing S&P 500 gainers this morning.

The split is expected to be completed by the middle of next year, the company said in a statement.

WBD CEO David Zaslav, who recently had a nearly $52 million pay package rejected by shareholders, will serve as CEO of the Streaming & Studios segment, while CFO Gunnar Wiedenfels will take on the CEO role at Global Networks.

In December, the company announced that it would internally restructure its operations into a TV- focused and a movie- and streaming-focused segment, and said it was open to splitting up the company in the long term. A report last month that the split was likely going to be announced soon sent WBD shares up sharply.

-Aaron McDade

Major Indexes Enter the Week in Positive Territory for 2025

2 hr 16 min ago

After two consecutive weeks of gains, the three major U.S. stock indexes are back in the green for 2025.

Through Friday’s close, the S&P 500 was up up 2% since the start of the year, while the Nasdaq Composite had gained 1.1% and the Dow Jones Industrial Average had risen 0.5% over the period.

The S&P 500 entered the day just 2.4% away from the record closing high it set on Feb. 19. The Nasdaq was 3.3% below its Dec. 16 record high, while the Dow was 5.3% away from its Dec. 4 closing high.

S&P 500 Levels to Watch as Index Back Above 6,000

3 hr 6 min ago

The S&P 500 (SPX) surpassed the 6,000-point mark on Friday for the first time since February, extending a rally for stocks that’s been fueled by optimism about strong corporate earnings and economic data, as investors await further developments on the trade front.

After climbing above a descending broadening formation, the S&P 500 trended sharply higher before consolidating within a pennant. The index broke out from the pattern last week, indicating a continuation of its recent move higher. Meanwhile, the relative strength index confirms bullish momentum, but remains below its overbought threshold, providing ample room for further upside.

Investors should track key overhead areas on the S&P 500’s chart around 6,100 and 6,575, while also watching major support levels near 5,770 and 5,650.

The S&P 500 closed right at 6,000 on Friday, and futures are pointing to a slightly higher open for the benchmark index on Monday.

Read the full technical analysis piece here.

-Timothy Smith

Major Index Futures Rise Slightly

3 hr 30 min ago

Futures tied to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures rose 0.2%.

Nasdaq 100 futures tacked on 0.1%.