The S&P 500 Gains and Losses Today: Take-Two Stock Tumbles as GTA VI Could Face Delays
Introduction
Major U.S. equities indexes moved lower to kick off a shortened four-day trading week as the rally in tech stocks lost steam. The S&P 500 fell 0.3% on Monday, March 25, 2024, with the Nasdaq and Dow also experiencing declines. This article will delve into the key takeaways from the day’s trading session, including notable gainers and losers in the S&P 500.
Market Performance
The S&P 500 fell 0.3% on Monday, signaling a negative start to the trading week. The tech sector, which had been driving market gains in recent sessions, faltered, contributing to the overall decline in major indexes. The Nasdaq and Dow also experienced losses of 0.3% and 0.4%, respectively.
Notable Losers
Shares of Take-Two Interactive Software (TTWO) posted the weakest performance among S&P 500 companies, dropping 4.2%. The decline came on the heels of reports suggesting potential delays in the release of the highly anticipated “Grand Theft Auto VI” video game. Production challenges at Take-Two subsidiary Rockstar Games, particularly related to remote work policies, were cited as reasons for the setback.
Lululemon (LULU) shares also saw a significant decline, falling 3.5% following disappointing profit and sales guidance issued by the athletic apparel maker. While Lululemon remains optimistic about international growth opportunities, softness in the U.S. market prompted a cautious outlook. The company plans to increase spending to bolster brand awareness in the coming months.
United Airlines (UAL) shares dropped 3.4% as news broke that the Federal Aviation Administration (FAA) is conducting a safety investigation into the carrier. While United acknowledged the importance of safety oversight, potential delays in future projects loom as a result of the probe.
Notable Gainers
On a positive note, Super Micro Computer (SMCI) shares surged 7.2%, marking the top performance among S&P 500 stocks on Monday. The rally came after JPMorgan initiated coverage of the stock with an overweight rating, citing significant upside potential for the server manufacturer. Super Micro Computer’s expertise in generative artificial intelligence (AI) and its partnership with Nvidia were highlighted as key drivers of growth.
Micron Technology (MU) also experienced a notable gain, with shares jumping 6.2% following better-than-expected quarterly results driven by strong demand for memory chips in AI applications.
Constellation Energy (CEG) saw its stock price rise by 5.1% after Guggenheim raised its price target on the company to $199. Analysts cited an updated valuation model and the adoption of a bifurcated earnings per share (EPS) approach as reasons for the bullish outlook on Constellation Energy.
Conclusion
In conclusion, the S&P 500 started the week on a negative note as tech stocks lost momentum. While some companies faced challenges and saw their stock prices decline, others experienced significant gains driven by positive news and analyst ratings. Investors will continue to monitor market developments closely as they navigate through a shortened trading week and await key economic data releases.
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