Stocks Close Lower as Tech Sector Slump Continues; Gold Surges to Record High

Biggest S&P 500 Movers on Tuesday

46 minutes ago

Decliners

• Shares of Kraft Heinz (KHC) tumbled 7%, falling the furthest of any S&P 500 stock, after the packaged food giant announced a plan to separate its North American grocery business from its sauces and spreads unit. The grocery business includes Oscar Mayer, Kraft Singles, and Lunchables, while the larger sauce-focused company will remain the home of Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. The announcement of the split-up, which the company expects to close in the second half of 2026, came a decade after the megamerger between Kraft and Heinz created one of the world’s largest food companies.
• Alcoholic beverage maker Constellation Brands (STZ) cut its adjusted profit guidance, citing tariff impacts and slumping beer demand. The maker of the Modelo and Corona beer brands now anticipates a 2% to 4% decline in beer sales in fiscal 2026 as macroeconomic uncertainty weighs on consumer spending. Constellation Brands shares sank 6.6% on Tuesday.
• Shares of Albemarle (ALB), the world’s largest lithium miner, lost 6.3%. Baird analysts raised their price target on Albemarle stock ahead of the holiday weekend, highlighting a recovery in lithium prices following capacity cuts by a major producer in China. However, Baird maintained its “underperform” rating on Albemarle stock, citing limited visibility into the dynamics of the lithium market and uncertainty surrounding Chinese government policy.

Decliners

• Shares of beauty products retailer Ulta Beauty (ULTA) jumped 8.1%, notching the S&P 500’s top daily performance to claw back the heavy losses posted Friday at the end of a volatile week of trading. Ahead of the holiday weekend, Barclays analysts raised their price target on Ulta shares, pointing to the cosmetic company’s strong second-quarter results as well as positive strategic initiatives under CEO Kecia Steelman, who took the reins at Ulta at the beginning of 2025.

• Biogen (BIIB) received approval from the Food and Drug Administration for an injectable version of Leqembi, a treatment for Alzheimer’s disease produced by the biotech company in collaboration with Japanese pharmaceutical firm Esai. Whereas patients previously needed to travel to an infusion center for a time-consuming process twice per month, Leqembi can be taken at home via a weekly under-the-skin injection. Biogen shares jumped 5.6% on Tuesday.
• Shares of fashion company Ralph Lauren (RL) advanced 4.8% to reach an all-time closing high. The company received a boost last week when a dress made by Ralph Lauren was featured in engagement photos released by the superstar recording artist Taylor Swift.

–Michael Bromberg

History Says ‘Sell in September,’ Wall Street Says ‘Keep Buying’

1 hr 6 min ago

September is historically the worst month of the year for stocks, with the S&P 500—and its precursor indexes before 1957—falling more than 1% on average since 1928.

This September, investors are contending with trade uncertainty, elevated inflation, a weakening job market, and President Trump’s threats to central bank independence.

Still, experts point to strong earnings growth, impending interest rate cuts, and healthy AI demand as reasons to be bullish in the long term.

Read the full article here.

–Colin Laidley

Musk Sees 80% of Tesla Revenue Coming From Robots

1 hr 30 min ago

Tesla (TSLA) CEO Elon Musk has long touted humanoid robots as key to the electric vehicle maker’s future. Now he’s putting a number on its value. 

In a post on his X social media platform Monday, Musk said “~80% of Tesla’s value will be Optimus” humanoid robots. He didn’t state when he expects that to happen in the post, made soon after the company published its latest “Master Plan,” which featured Optimus for the first time.

Optimus “is changing not only the perception of labor itself but its availability and capability,” Tesla said in its “Master Plan Part IV,” though the robots have yet to be sold to customers.

Musk has previously suggested the robots, which are expected to cost between $20,000 and $30,000, could be sold to other companies as soon as next year, with sales to consumers set to follow after that.

The robots are already performing some “simple factory tasks” for Tesla, according to the CEO, who has said he expects “thousands” of Optimus robots working in Tesla factories by the end of 2025, and that the company could produce 1 million robots a year by 2030. During the company’s second-quarter earnings call in July, Musk said “it’ll probably be prototypes of Optimus 3 end of this year and then scale production next year,” according to a transcript provided by AlphaSense.

Meanwhile, Tesla’s core EV business continues to struggle. Its second-quarter revenue dropped 12% year-over-year to $22.5 billion, worse than expected, and Musk warned the company could have a “few rough quarters” ahead, with the expiration of EV tax credits later this month likely to weigh on demand, after President Trump signed the “One Big Beautiful Bill” into law in July.

Tesla shares shed more than 1% on Tuesday amid a broader tech sell-off.

–Nisha Gopalan

Gold Price Levels to Watch as Precious Metal Hits New Highs

2 hr 1 min ago

The price of gold (XAUUSD) surged to an all-time high Tuesday, gaining ground for the sixth straight session, amid renewed tariff uncertainty and expectations that the Federal Reserve will cut interest rates soon.

Spot gold was up 1.8% at $3,540 an ounce on Tuesday afternoon. The precious metal has gained about 35% since the start of the year, supported by global central bank buying, tensions in the Middle East, and economic uncertainty.

Gold’s price consolidated within a five-month symmetrical triangle before breaking out from the pattern on Friday, potentially laying the groundwork for a continuation move higher.

While the relative strength index moves toward overbought levels to signal strong price momentum, the indicator remains below 75, a reading that has coincided with minor retracements in the commodity after strong trending periods.

Importantly, increasing trading volume has accompanied recent buying in the precious metal, indicating heightened investor interest.

The measured move technique projects a bullish price target of $3,930 per ounce. Investors should also watch key support levels on gold’s chart around $3,430 and $3,150.

Read the full technical analysis piece here.  

–Timothy Smith

UBS Sees Chip Stock Slump as Buying Opportunity

3 hr 25 min ago

Semiconductor stocks are taking a bite out of U.S. indexes to start September, but for some bulls on Wall Street, that could mean it’s time to buy.

“We recommend that investors who are underallocated to equities consider phasing in and using market dips to add exposure to preferred areas,” UBS analysts said Tuesday, with tech and AI plays among their favorites, while chip stocks dragged on the sector to start the week.

 Nvidia (NVDA) was one of the worst-performing stocks on the Dow Jones Industrial Average Tuesday afternoon, with shares down nearly 3%. Broadcom (AVGO), Advanced Micro Devices (AMD), and other chip stocks were also lower, with the PHLX Semiconductor Index (SOX) down nearly 2%. 

Some investors could be worried about September’s reputation as a tough month for stocks—but that shouldn’t discourage them, according to UBS analysts. That’s because October and November tend to be strong months for U.S. stocks, they said, with average S&P 500 returns over the past decade of 1.2% and 4%, respectively. Buying in September could help investors position themselves for better performance in the months that follow.

UBS also pointed to strong earnings in the second quarter, a robust outlook for AI demand, and expectations of a rate cut later this month as reasons supporting their optimism in the tech sector.

“Alongside AI, power and resources, and longevity, we favor US technology, health care, utilities, and financials,” the analysts said.

–Kara Greenberg

Klarna Revives U.S. IPO With Plan to Raise $1.27B

4 hr 50 min ago

Fintech firm Klarna and its backers are raising as much as $1.27 billion from an initial public offering, as the buy now, pay later (BNPL) company makes a renewed attempt to go public in New York.

Klarna paused its planned IPO days after President Donald Trump’s sweeping  “Liberation Day” tariffs announcement disrupted markets in early April. It had the previous month filed a registration statement with the Securities and Exchange Commission, applying to list on the New York Stock Exchange using the symbol “KLAR.” 

The Swedish fintech said on Tuesday it was aiming to price the sale of a total of 34.3 million shares at between $35 and $37 each.  

The IPO is coming to a market that has been booming, with shares of design software platform Figma (FIG) more than tripling on its debut at the end of July and shares of Peter Thiel-backed crypto exchange Bullish (BLSH) soaring on their debut last month. U.S. IPO volumes so far this year have reached $41.58 billion, according to Dealogic data, the highest since the same period in 2021, when it hit a record $229.51 billion.

Still, Klarna’s valuations have dropped in recent years. Klarna said it was valued at $6.7 billion in July 2022, down sharply from $45.6 billion barely a year earlier, and is now worth between $12.5 billion and $14 billion, according to the Financial Times. Klarna’s major BNPL competitors include Affirm (AFRM), Block’s (XYZ) Afterpay, and PayPal (PYPL).

–Nisha Gopalan

What Nvidia’s Earnings Could Mean for Other Chipmakers

5 hr 41 min ago

As one of the primary beneficiaries of the AI boom, chipmaker Nvidia’s (NVDA) stock has become a bellwether for industry, with its quarterly results last week offering some clues about what to expect from Broadcom (AVGO) later this week, and other chipmakers. 

Nvidia’s earnings came in just ahead of Wall Street’s estimates last week, disappointing the lofty expectations of many investors. Analysts remain confident in demand for its AI hardware, though worries about China sales and geopolitical issues have weighed on the stock.

Shares of Nvidia were down more than 3% in recent trading, and Broadcom shares slipped 0.5%, as chip stocks extended last week’s declines, weighing on the major indexes.

AI chipmaker Broadcom, which Oppenheimer analysts have called the “No. 2 AI franchise” after Nvidia, is set to report its fiscal third-quarter results after the bell on Thursday, and could face some similar challenges related to its large exposure to China—as well as benefit from AI tailwinds.

Like Nvidia, Broadcom derives a significant chunk of its sales from China, with the country accounting for roughly a fifth of Broadcom’s revenue in its fiscal 2024, though that’s declined from almost a third in 2023.

Broadcom also claims some of the same Big Tech AI clients Nvidia does, including Meta Platforms (META) and Google parent Alphabet (GOOGL), with their commitments to hefty AI spending expected to benefit the chipmaker. Citi analysts suggested last week Broadcom could also have plans with ChatGPT maker OpenAI, Elon Musk’s xAI, and Apple (AAPL) in its pipeline.

The Citi analysts have a “buy” rating and $315 price target for the stock, which finished Friday’s session around $297. Despite recent losses, it has added more than one-quarter of its value since the start of the year. Oppenheimer expects Broadcom could have even further to climb, with a $325 target, still well below a Street high of $350, according to Visible Alpha.

Heading into the results, Wall Street analysts are overwhelmingly bullish on Broadcom’s stock, anticipating rising sales and profits. All of the 10 analysts with current ratings compiled by Visible Alpha give it a “buy” or equivalent rating.

–Kara Greenberg

Constellation Brands Stock Drops on Weak Beer Demand

6 hr 23 min ago

Constellation Brands (STZ) shares fell Tuesday after the alcoholic beverage giant cut its outlook on falling demand for beer and the impact of tariffs.

The maker of Modelo Especial and Corona said it now sees fiscal 2026 comparable, or adjusted, earnings per share of $11.30 to $11.60, versus the earlier guidance of $12.60 to $12.90.

The company expects beer sales to fall 2% to 4%, and beer operating income to sink 7% to 9%. Its prior estimate for sales was flat to 3% growth, and operating income of flat to 2% higher. Constellation blames the change in sales on “incremental macroeconomic headwinds affecting consumer demand,” and operating income on “lower volumes, operating deleveraging, and additional tariffs.”

CEO Bill Newlands said the company has been navigating a “challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter.” Newlands noted that “over the last several months, high-end beer buy rates decelerated sequentially, as both trip frequency and spend per trip declined,” especially among Hispanic consumers. 

CFO Garth Hankinson added that in the current quarter, Constellation Brands anticipates “inventory rebalancing at the distributor level to reflect softer consumer trends, and to occur earlier than is typical for our Beer Business.”

Shares of Constellation Brands were down 7% recently, trading at their lowest level since the COVID-19 pandemic hit in 2020. 

U.S.-listed shares of Budweiser parent Anheuser-Busch InBev (BUD) and shares of Sam Adams maker The Boston Beer Company (SAM) were each down about 2%.

–Bill McColl

Kraft Heinz to Break Up a Decade After Merger

7 hr 45 min ago

Kraft Heinz (KHC) is planning to break up into two companies, undoing a merger that is just a decade old by splitting its North American grocery business from its sauces and spreads operation, which includes Philadelphia cream cheese.

The grocery business, dubbed “North American Grocery Co.” for now, includes Oscar Mayer, Kraft Singles, and Lunchables and would be led by current company CEO Carlos Abrams-Rivera. It had around $10.4 billion in 2024 net sales. 

The bigger “Global Taste Elevation Co.” will house Heinz, Philadelphia, and Kraft Mac & Cheese. It chalked up $15.4 billion in 2024 net sales, approximately 75% of which came from spreads, seasonings, and sauces.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Kraft Heinz Executive Chair Miguel Patricio said. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”

The companies’ megamerger in 2015 created one of the world’s leading food makers, known for brands like Philadelphia cream cheese, Cool Whip, Maxwell House coffee, and Stove Top stuffing. It said it expects the split to close in the second half of 2026. 

The company said in May that it has been exploring potential transactions to unlock shareholder value and in July, The Wall Street Journal reported the company was planning a breakup.

Kraft Heinz shares were down about 5% in recent trading. The stock has lost nearly 14% since the start of 2025.

–Nisha Gopalan

PepsiCo Stock Rises as Elliott Takes Stake

8 hr 31 min ago

Shares of PepsiCo (PEP) surged early Tuesday as activist investor Elliott Investment Management announced it has taken a large stake in the soft drink and snack giant, and is pushing for changes to lift the stock price.

Elliott said that it has acquired a $4 billion stake in Pepsi, and sent a presentation and letter to the board that set out a “unique opportunity to re-accelerate growth and boost financial performance through greater focus, improved operations, strategic reinvestment and enhanced accountability.”

The investor argued that the company’s recent performance “has been marked by a series of strategic and operational challenges,” adding that those have led to “poor financial results, sharp stock-price underperformance and a highly dislocated valuation.”

Elliott said its proposals could boost the share price by “more than 50%,” and it wants to collaborate with management to “return PepsiCo to its rightful place as a market-leading consumer packaged goods (CPG) powerhouse with superior results and impact.”

With this morning’s gain, PepsiCo shares have inched back into positive territory for 2025.

–Bill McColl

Major Index Futures Point to Sharply Lower Open

9 hr 45 min ago

Futures tied to the Dow Jones Industrial Average were down 0.8%.

S&P 500 futures fell 1%.

Nasdaq 100 futures dropped 1.3%.