Important points
- On October 20, 2025, shares of leading smartphone manufacturers and AI server producers were strong performers in the S&P 500, while major enterprise software firms faced declines.
- Apple’s stock saw an increase after reports indicated robust sales trends for the newly launched iPhone 17.
- In contrast, Oracle’s stock continued to drop due to concerns regarding the company’s capital expenditures and its dependence on revenue from OpenAI.
The tech giant experienced a boost on Monday, driven by positive sales for its flagship product. Meanwhile, the software giant’s stock continued to slide, a trend that started last week amid skepticism about its ambitious growth targets.
U.S. major stock indexes performed well as trading resumed for the week, spurred by numerous earnings reports and significant inflation data. The S&P 500, Dow, and Nasdaq all rose by over 1%.
Apple (AAPL) shares climbed nearly 4%, reaching a new closing price high, following reports of strong demand for the iPhone 17 series in both the U.S. and China. Counterpoint Research noted that initial sales outperformed those of its predecessor within the first ten days of the launch.
Super Microcomputer (SMCI) shares surged by 5.5% after a technical analyst suggested the stock might be developing a bullish cup-and-handle pattern. The company, noted for its substantial role in the AI infrastructure realm, faced a drop in August after reporting revenues and profits that fell short of expectations.
Natural gas prices increased as forecasts predicted a rise in heating demand due to colder weather. Expanded Energy (EXE), the largest natural gas producer in the U.S., saw its shares rise 6%, making it the top performer of the S&P 500. EQT Corporation (EQT) shares also grew by nearly 5%.
Over the weekend, there were reports of heightened regulatory scrutiny of AppLovin (APP), following news earlier this month that the SEC was investigating its data collection practices. Consequently, AppLovin’s stock dropped by 5.6%, leading the day’s decline in the benchmark index.
Oracle (ORCL) shares fell almost 5% on Monday, extending losses from the previous week after the company set ambitious goals at the Oracle AI World conference in Las Vegas. Despite its drive for AI-focused growth, several Wall Street analysts voiced concerns about its capital spending and reliance on OpenAI revenue.
Shares of hard disk drive manufacturers Seagate Technology Holdings (STX) and Western Digital (WDC) decreased by 4.9% and 3.7%, respectively. Although UBS analysts raised their price targets, they kept their “neutral” ratings for both companies. They warned that while demand trends driven by AI infrastructure could remain strong through 2026, a potential cyclical recession might hit in 2027.
