Major Indexes Experience Weekly Declines as Treasury Yields Reach Four-Month Peak

Are software stocks set for a recovery?

From 3 hours 49 minutes ago

The PHLX Semiconductor Index (SOX) climbed over 1% on Friday, boosted by shares from Micron (MU), Broadcom (AVGO), and Advanced Micro Devices (AMD). Conversely, software stocks such as Aprovin (APP), Palantir (PLTR), and Workday (WDAY) found themselves among the least favored in the S&P 500.

The day’s events highlighted a widening divide: chipmakers are seeing gains from an increase in AI data centers, while software companies are facing investor concerns about potential disruption from AI-focused newcomers.

Adam Turnquist, chief technical strategist at LPL Financial, believes a temporary turnaround could be on the horizon.

“Even with semiconductors continuing to lead in the long term, the software-to-semiconductor ratio is presently oversold and nearing an important support level that goes back to the early 2000s,” Turnquist noted in his Friday message.

“The size of any rebound appears consistent with historical turning points from the last 15 years, indicating a possible near-term recovery in software’s performance, though a lasting trend shift isn’t confirmed just yet,” Turnquist concluded.

PNC Financial shares surpass earnings expectations, reaching a four-year peak

5 hours 5 minutes ago

PNC Financial (PNC) stock soared to a four-year high on Friday following a quarterly report that exceeded market expectations, along with plans for increased stock buybacks this quarter.

Based in Pittsburgh, PNC announced a net income of $2.03 billion for the fourth quarter, which translates to $4.88 per diluted share. Their net interest income saw a 2% rise to $3.73 billion. Analysts had pegged expectations at $4.23 per share in earnings and anticipated an NII of $3.7 billion.

“Our strong execution across all business lines resulted in record revenues, effective expense management, and a 21% growth in earnings per share for 2025,” remarked CEO Bill Demchak. “We’re entering 2026 with significant momentum and are looking forward to opportunities ahead, including our recent acquisition of FirstBank.”

PNC completed its acquisition of FirstBank on January 5, taking on $26 billion in assets along with $16 billion in loans and $23 billion in deposits.

Furthermore, the bank’s allowance for credit losses has decreased from $167 million to $139 million this quarter, representing a fall from 1.61% to 1.58% of total loans.

PNC also announced plans to spend between $600 million and $700 million on stock buybacks this quarter, up from the previous $400 million.

PNC’s stock has gained nearly 4% in recent sessions and is expected to close at its highest since January 2022. Over the past year, the stock price has increased by almost 14%.

Transparency legislation stalls, affecting cryptocurrency prices

From 5 hours 55 minutes ago

Cryptocurrencies are hoping to regain footing, even if it means enduring some short-term setbacks.

Recent disagreements on cryptocurrency regulations have dampened early optimism in 2026. Although prices had been rising earlier in the week, they’ve fallen in recent days following a delay in the Clarity Act, a proposed bill to establish a regulatory framework for the sector.

This nearly 300-page bill has been in development for months leading into a Senate Banking Committee hearing this week. However, it was postponed after Coinbase (COIN) CEO Brian Armstrong pulled his support, citing concerns that the bill could jeopardize one of the company’s products. Lawmakers are also negotiating ethical limits to prevent government officials, including President Trump, from profiting from cryptocurrencies.

Following the news, shares of crypto firms like Coinbase, Circle (CRCL), and Blish (BLSH) dipped, although they showed some signs of recovery on Friday. Bitcoin and other altcoins, such as Ethereum and Solana, also regained some of their earlier losses.

GE Vernova rises, Constellation and Vistra decline in response to Trump’s power grid proposal

7 hours 3 minutes ago

AI energy stocks experienced a boost on Friday after reports surfaced about President Trump’s plans requiring major power grid operators to have tech giants finance new power plants.

The administration, along with several governors, aims to push PJM Interconnection, which oversees electricity for multiple Mid-Atlantic and Midwest states and Washington, D.C., to conduct an emergency power auction where tech firms would bid for long-term electricity contracts. Funds generated are expected to help build around $15 billion worth of new plants, a White House spokesperson indicated.

GE Vernova (GEV) shares rose by 6% in response, as speculation suggested that the plant constructions would boost their gas turbine business. On the other hand, shares of Constellation Energy Corp. (CEG) and Vistra (VST), both independent power firms tied to tech companies, fell by 11% and 7%, respectively.

Electricity costs have surged over the previous year, especially in regions with significant data center presence, such as Virginia, which PJM serves. With the upcoming midterm elections, AI’s impact on power consumption and household costs is a hot-button issue and affordability is expected to remain a focal point.

However, investors in tech giants with overloaded data centers appeared relatively unconcerned by the proposal on Friday. Shares of Microsoft (MSFT) and Meta (META) saw minor increases of about 1%, while Amazon (AMZN) also ticked up slightly. In contrast, Alphabet (GOOG) saw a slight dip in its stock price.

AST Space Mobile stock jumps on possible ‘Golden Dome’ contract

From 7 hours 54 minutes ago

AST Space Mobile (ASTS) shares surged on Friday after being identified as a potential contractor for the U.S. Missile Defense Agency’s Golden Dome initiative.

The company announced that it was awarded the Missile Defense Agency’s SHIELD Indefinite Delivery, Indefinite Quantity (IDIQ) contract, which puts them in a position to compete for contracts linked to SHIELD.

As a result, shares rose by more than 15%, leading to a year-to-date gain of roughly 60% for the company.

The new award doesn’t guarantee a contract for AST Space Mobile, but allows the company, which aims to create a fully space-based cellular network using low-orbit satellites, to contend for contracts totaling up to $151 billion.

The SHIELD initiative is part of the Golden Dome air and missile defense strategy. This week’s contract announcements brought the total prospective bidders for SHIELD projects to 2,440.

“This SHIELD IDIQ contract positions AST SpaceMobile as a qualified provider able to bid on future mission orders, enabling us to rapidly align our advanced space technologies with the critical needs of the Army and other U.S. agencies,” stated Chris Ivory, AST SpaceMobile’s chief commercial officer.

The topic of space exploration has gained traction on Wall Street lately, with SpaceX rumored to be considering an IPO this year at a projected valuation around $1.5 trillion, which would be the largest IPO since Saudi Aramco’s debut in 2019. There’s also discussion among experts about utilizing space for data centers in line with the AI wave.

Micron shares surge after director buys $8 million worth

9 hours 1 minute ago

Micron (MU) shares jumped on Friday following a notable investment by a board member.

Mark Liu, a current board member at Micron and former co-CEO of Taiwan Semiconductor Manufacturing (TSM), acquired 23,200 shares earlier this week, valued at approximately $7.8 million according to a disclosure filed late Thursday.

In the morning, Micron’s stock saw a rise of over 5%, making it one of the top performers in the S&P 500.

Mr. Liu’s purchase follows a significant stock rally, indicating a positive outlook for tech investors. Over the past year, Micron’s stock has appreciated as demand for memory and data storage has surged amid the growth of AI data centers; prices have increased by around 40% since the start of the new year.

Additionally, stocks like SanDisk (SNDK), Western Digital (WDC), and Seagate Technology (STX) will likely gain from the current memory shortage. SanDisk’s shares alone have skyrocketed over 1,000% since it split from Western Digital last February. Meanwhile, Western Digital and Seagate have also seen increases of roughly 350% and 240% respectively over the last year. Recently, Seagate rose about 2%, but Western Digital and SanDisk receded slightly to trade about 1% lower.

Rate cut chances appear dimmer as Fed officials express support for Powell

From 10 hours 14 minutes ago

If the Trump administration’s investigation into Federal Reserve Chairman Jerome Powell aimed to pressure the central bank into sharp interest rate reductions, the results seem counterproductive.

At least four Fed officials responsible for setting interest rates voiced their support for Powell this week, asserting that the Fed’s monetary policy decisions must prioritize public interest over White House directives. As a result, traders have increasingly discounted the likelihood of a rate cut at the year’s start.

The Justice Department issued a subpoena to the Fed last week, looking for details on Powell’s June 2020 testimony about renovations at the Fed’s headquarters. Powell has denied any wrongdoing, suggesting the investigation is part of Trump’s long-standing effort to push the Fed to lower the benchmark interest rate, which has broader implications for borrowing costs across various loans. Trump has denied any prior knowledge of the investigation before the subpoena was issued.

Several Fed members echoed Powell’s perspective, emphasizing the importance of the Fed’s independence from political influence to effectively manage inflation through monetary policy. Their candid remarks are unusual, as Fed officials typically steer clear of political controversies.

Stock futures trend upward as tech sector rally persists

From 11 hours 24 minutes ago

Futures tied to the Dow Jones Industrial Average remained mostly stable in premarket activity.

S&P 500 futures saw a slight uptick of around 0.2%.

Nasdaq 100 futures gained 0.5%.