The S&P 500 saw a 0.9% increase on Tuesday, January 21st, the first trading day after President Donald Trump’s return to the White House. This day witnessed significant market fluctuations, with Oracle experiencing a surge and Walgreens facing a sharp decline.
The market opened a shortened trading week following the Martin Luther King Jr. holiday and President Trump’s inauguration. Despite initial expectations of aggressive trade actions, President Trump did not enact tariffs on his first day back, suggesting a potentially more moderate approach to trade policy.
This positive sentiment contributed to the overall market gains, with the S&P 500 rising 0.9%. The Nasdaq also showed growth, climbing 0.6%, while the Dow Jones Industrial Average saw a more substantial increase of 1.2%, largely driven by strong performance in the industrials sector.
:max_bytes(150000):strip_icc()/GettyImages-1247934203-9739a2036665407ba05890d9445f971a.jpg)
Shares of nuclear energy companies saw a significant boost on Tuesday. This surge followed comments from Chris Wright, Trump’s pick to lead the Department of Energy, emphasizing the prioritization of nuclear power production in the U.S. Vistra (VST) led the S&P 500 with an 8.5% jump after evacuation orders related to a plant fire were lifted. NRG Energy (NRG) also saw notable gains, with shares rising 6.7%.
Oracle (ORCL) experienced a significant surge, with shares jumping 7.2%. This followed reports of the company’s involvement in a substantial $500 billion joint venture, known as Stargate, aimed at bolstering U.S. artificial intelligence (AI) infrastructure. This initiative also reportedly includes SoftBank (SFTBY) and OpenAI.
Prologis (PLD), a real estate investment trust (REIT) specializing in logistics facilities, exceeded expectations with its fourth-quarter core funds from operations (FFO). Its shares climbed 7.1%, fueled by increased demand for warehouse space. This demand surge is attributed to importers stocking up in anticipation of potential tariffs under the new administration. Prologis also finalized the sale of a Chicago-area data center, although financial details remain undisclosed.
:max_bytes(150000):strip_icc()/warehouse-interior-with-forklift-1386188669-e155e59db733492ea31f8360e4f34012.jpg)
Walgreens Boots Alliance (WBA) suffered the most significant loss in the S&P 500, with its shares plummeting 9.2%. This sharp decline followed a lawsuit filed by the U.S. Department of Justice, alleging the pharmacy chain illegally dispensed millions of prescriptions without valid medical justification. The lawsuit contends that Walgreens prioritized speed over safety, leading to the improper distribution of opioids and other medications. Walgreens has countered, stating the lawsuit attempts to enforce arbitrary rules not found in existing law.
Booking Holdings (BKNG), an online travel platform operator, saw its shares fall 4.9%, reversing gains from the previous week. While Morgan Stanley analysts had recently raised their price target for Booking, citing the potential of its AI tool, the company faces stiff competition and ongoing concerns about its reliance on lead generation.
First Solar (FSLR) shares also dipped 4.9%. Despite BMO Capital Markets maintaining an “outperform” rating, analysts highlighted challenges in the Indian solar equipment market, potentially impacting sales in Malaysia and Vietnam. Furthermore, uncertainty surrounding renewable energy policy under the new U.S. administration adds to the company’s challenges.
In summary, Tuesday’s trading reflected a mix of positive market momentum and company-specific developments. While the broader market indices showed gains, individual companies like Walgreens and Booking Holdings faced significant challenges, highlighting the dynamic nature of the financial landscape.
