The Latest Stock Market Update: Equinix Leads S&P 500 Higher, EPAM Systems Shares Plunge

Key Takeaways

• U.S. equities were higher at midday Thursday, May 9, 2024, as rising unemployment claims lifted hopes the Fed would move to lower interest rates.
• Equinix led the S&P 500 higher on surging demand for artificial intelligence products.
• Epam Systems warned about a challenging demand environment, and shares plunged.

U.S. equities were higher at midday as first-time unemployment claims rose to their highest level since August, lifting hopes that a slowdown in the labor force could push the Federal Reserve to cut interest rates. The Dow, S&P 500, and Nasdaq all gained.

Equinix Soars on AI Demand

Equinix (EQIX) was the best-performing stock in the S&P 500 after the data center real estate investment trust (REIT) reported strong first-quarter results as it benefited from soaring demand for artificial intelligence (AI) products.

Shares of Steris (STE) climbed as the Ireland-based healthcare and dental products firm announced a restructuring focusing on its surgical business in Europe.

Shares of Newmont Corporation (NEM) and other gold miners advanced along with the price of gold.

EPAM Systems Faces Challenges

Epam Systems (EPAM) shares cratered as the software engineering firm’s current-quarter and full-year guidance missed estimates as the company faced a challenging demand environment and unexpected market conditions.

Shares of Roblox (RBLX) plunged after the company issued first-quarter results and guidance that missed analyst estimates.

Airbnb (ABNB) shares slumped after the vacation rental site also posted a lower-than-expected outlook for the current quarter on the timing of Easter and other holidays.

Norfolk Southern (NSC) shares also fell after activist investor Ancora won three seats on the board but failed in its effort to oust CEO Alan Shaw.

Oil futures and the yield on the 10-year Treasury note were little changed. The U.S. dollar gained on the yen, but lost ground to the euro and pound. Prices for most major cryptocurrencies were higher.

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Conclusion

The stock market continues to experience fluctuations based on various factors such as company performance, economic indicators, and investor sentiment. While some companies like Equinix are thriving due to increased demand for AI products, others like EPAM Systems are facing challenges in meeting market expectations. It is essential for investors to stay informed about these developments to make well-informed decisions in the ever-changing market landscape.