Stocks Surge as U.S. Steel Acquisition Deal Announced
Stocks rose on Monday despite concerns from Federal Reserve officials about lowering interest rates in the near future. The S&P 500 saw a 2.5% increase last week, marking a seven-week winning streak for U.S. stocks.
Among the notable stock movements on Monday, U.S. Steel saw a 27% rise to $50.05 following news of an acquisition agreement with Nippon Steel for $55 a share in cash, or $14.9 billion including debt. Nippon Steel has committed to maintaining U.S. Steel’s relationships with the United Steelworkers union.
In contrast, Apple was down 1.3% after reports that it would be halting sales of the Apple Watch in preparation to comply with a U.S. import ban. Adobe announced the termination of its deal to acquire design tools maker Figma for $20 billion.
SunPower shares were sinking 37% after issuing a “going concern” warning due to a potential default, while VF Corp, the parent company of Vans and The North Face, saw a 7.6% decline following a security breach that could have a “material impact” on its business.
Illumina announced plans to sell Grail, its unit that makes cancer blood tests, after a federal appeals court found that the U.S. government had the right to challenge the $7.1 billion acquisition made in 2021. Meanwhile, NIO shares rose 6.3% after the Chinese electric-vehicle maker received a $2.2 billion investment from CYVN Holdings.
In other news, FuelCell Energy rose 3.3% after announcing a partnership with Exxon Mobil aimed at reducing carbon dioxide emissions, while Affirm fell 1.8% following a downgrade by Morgan Stanley.
Uber Technologies and Jabil were down 0.5% and 0.8% respectively as they made their S&P 500 debut on Monday, along with Builders FirstSource which was off 0.3%.
Overall, the stock market saw significant movement spurred by various corporate developments. Investors will continue to monitor these developments as well as interest rate news from the Federal Reserve.