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Avidity Biosciences is being bought by Novartis in a $12 billion deal.
Key Takeaways

• Novartis is buying Avidity Biosciences in an all-cash deal valued at $12 billion to access Avidity's experimental treatments for neuromuscular diseases.
• The purchase price of $72 per share is a 46.5% premium to Avidity's closing price Friday.
• Avidity stock was up more than 40% in midday trading Monday, as were shares of Dyne Therapeutics, which is also developing RNA therapies for neuromuscular diseases.

Shares of Avidity Biosciences (RNA) soared more than 40% Monday after Novartis (NVS) agreed to buy the U.S. biopharmaceutical firm for about $12 billion in cash to expand its RNA-based disease-fighting pipeline.

The Swiss-based drugmaker said Avidity investors would be paid $72 for every share they owned, a 46.5% premium to Avidity’s closing price Friday. It noted that prior to completion of the sale, Avidity will spin off its early stage precision cardiology programs into a new company.

Why This News Is Significant

With this acquisition, Novartis is expanding its footprint in RNA-based therapies. The deal gives the company access to late-stage treatments for serious neuromuscular diseases. The deal illustrates growing investor and industry interest in RNA therapeutics.

The acquisition gives Novartis access to three of Avidity’s late-stage experimental treatments for serious genetic neuromuscular disease, which use RNA therapeutics called Antibody Oligonucleotide Conjugates, or AOC.

Adding Avidity’s AOC platform ​and its late-stage assets will “bolster our commitment to delivering innovative, targeted and potentially first-in-class medicines to treat devastating, progressive neuromuscular diseases," said Novartis CEO Vas Narasimhan. The transaction is expected to close in the first half of next year.

The company believes that the purchase will boost its 2024 to 2029 sales compound annual growth rate from 5% to 6%. 

Meanwhile, shares of Dyne Therapeutics (DYN) skyrocketed more than 40% Monday after analysts at Jefferies said the company, which also is developing RNA therapies for neuromuscular diseases, stands to benefit from Novartis picking up Avidity.

With the gains Monday, Avidity shares have risen 140% since the start of the year, while Dyne stock has inched back into positive territory. U.S.-listed shares of Novartis, which have gained about a third of their value so far this year, were down 1% in recent trading.

Source: TradingView.com
Key Takeaways

• The S&P 500 hit a fresh record high Monday morning at the start of a busy week that includes high-stakes trade talks, the Federal Reserve's decision on interest rates, and a wave of earnings reports from major technology companies.
• The index has traded higher within an ascending broadening formation since late May, recently finding support near the pattern’s lower trendline and 50-day moving average.
• A continuation of the S&P 500's current uptrend could see a rally toward the ascending broadening formation's upper trendline near 7,075. Major support levels lie on the chart around 6,600, 6,500 and 6,360.

The S&P 500 (SPX) hit a fresh record high early Monday at the start of a busy week that includes high-stakes trade talks, the Federal Reserve's decision on interest rates, and a wave of earnings reports from major technology companies.

The benchmark index surged Friday after a tamer-than-expected September inflation data reinforced expectations that the Fed's policy committee will cut the benchmark rate at the end of its two-day meeting on Wednesday. Progress on trade talks between the U.S. and China, ahead of a meeting later this week between President Donald Trump and Chinese President Xi Jinping is boosting sentiment this morning. Meanwhile, investors are preparing for the busiest earnings week of the quarter, highlighted by reports from Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL).

The S&P 500 was up nearly 1% at 6,850 in the opening minutes of Monday's session. The index has gained about 40% since hitting its low for the year in early April and is up 15% since the start of the year, boosted by strong corporate earnings, investor enthusiasm about AI stocks, and expectations for further rate cuts by the Fed.

Below, we take a closer look at the S&P 500’s chart and apply technical analysis to identify critical price levels worth watching out for after the index’s record close.

Ascending Broadening Formation in Focus

The S&P 500 has traded within an ascending broadening formation since late May, recently finding support near the pattern’s lower trendline and 50-day moving average (MA).

Meanwhile, the relative strength index confirms bullish momentum and sits well below previous peaks, indicating room for further upside. However, the large-cap benchmark closed just below the upper Bollinger Band on Friday, suggesting that near-term gains may be limited before a potential pullback or consolidation.

Let’s identify a critical overhead area to watch if the S&P 500 continues to trend higher and also point out three major support levels worth monitoring during possible downturns.

Critical Overhead Area to Watch

An expansionary move above the upper Bollinger Band could see the S&P 500 rally toward 7,075, about 4% above Friday’s close.

Investors who trade the index may look for exit points in this area near the ascending broadening formation’s upper trendline, which continues to rise, creating a dynamic resistance level that moves higher over time.

Major Support Levels Worth Monitoring

The first support level to monitor sits around 6,600. This location on the chart provides a confluence of support from the ascending broadening formation’s lower trendline and the upward-sloping 50-day MA.

A breakdown from the ascending broadening formation could see the index initially fall toward the 6,500 level. Support may emerge in this area, just below the October low and near the upper range of a sideways trend that formed on the chart between mid August and early September.

Finally, further downside could see the S&P 500 retrace toward 6,360. The index may find support in this region near a trendline that connects a series of corresponding trading activity on the chart from late July to early September.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

News of the day for Oct. 27, 2025

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Major stock indexes are poised to add to record highs on Monday.

Stock futures are pointing to a sharply higher open this morning after major indexes closed last week at record highs; investor sentiment is getting a boost after President Donald Trump said he was optimistic the U.S. would reach a trade deal with China and address ownership of social media app TikTok; Avidity Biosciences (RNA) shares are surging after Swiss pharmaceutical maker Novartis (NVS) said it would acquire the biotechnology firm; and U.S.-listed shares of Argentine companies are soaring after President Javier Milei’s political party posted victories in legislative elections there.  Here's what you need to know today.

1. Major Stock Indexes Poised to Open Higher After Hitting Record Highs

Stock futures are higher this morning amid optimism about an apparent easing of trade tensions between the U.S. and China, while investors prepare for an expected rate cut by the Federal Reserve and a flurry of earnings reports from major technology companies later in the week. The three major U.S. stock indexes come into today's session at record highs after each gained about 2% last week following a mild inflation report that reaffirmed expectations that the Fed will cut its key rate on Wednesday. Futures tied to the Dow Jones Industrial Average were up 0.5% recently, while those linked to the the benchmark S&P 500 and the tech-heavy Nasdaq added 0.9% and 1.3%, respectively. Bitcoin was trading at $115,400, up from a low over the weekend around $111,000. Gold futures were down 2.6% at $4,030 an ounce, as the precious metal continues to step back from recent highs. The yield on the 10-year Treasury note, which affects borrowing costs on a wide array of consumer loans, rose to 4.02% from 4.00% at Friday's close. Crude oil futures were down slightly at around $61.40 after jumping last week following a move by the U.S. to place sanctions on Russian oil firms.

2. Trump Sounds Positive Note on U.S.-China Trade Talks

President Donald Trump said early Monday that the U.S. is positioned to reach a trade deal with China, as the the president gets set to meet with Chinese leader Xi Jinping on Thursday in South Korea. "I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said. U.S. and Chinese negotiators over the weekend reached a framework for a trade deal that could result in a reduction of tariffs and trade barriers between the two countries. The deal will reportedly delay the implementation of 100% tariffs on Chinese imports that were slated to begin on Nov. 1, while China’s export controls on rare earth elements are also expected to be delayed as the two sides continue negotiations. Trump also expects the two countries to reach a deal on ownership of the social media app TikTok. The U.S. also announced that separate trade and mineral agreements were reached with Malaysia and Cambodia, while trade pact frameworks were struck with Thailand and Vietnam.  Shares of U.S. chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD), which are seeking to sell into Chinese markets, were both up more than 2% in premarket trading.

3. Trump Says Canada Will Face Additional 10% Tariffs for Reagan Ad

Trump said that the U.S. will slap an additional 10% tariff on Canadian goods after the Ontario provincial government ran an ad criticizing tariffs during the World Series on Friday. Ontario Premier Doug Ford said that broadcasts of the ad would end on Monday. Trump has criticized the ad for featuring comments from former President Ronald Reagan, which he described as a “serious misrepresentation of the facts.” Trump had placed a tariff of 35% on Canadian goods not covered by the USMCA agreement, though tariffs on some products like steel and aluminum are subject to levies of 50%. Trump had previously said trade negotiations with Canada would be “terminated” over the ad.

4. Novartis Agrees to Acquire Biotech Firm Avidity Biosciences

Shares of Avidity Biosciences (RNA) are soaring in premarket trading after Swiss pharmaceutical giant Novartis (NVS) agreed to buy the biotechnology company in a deal valued at $12 billion. Avidity will spin off part of its early-stage precision cardiology business before closing the deal in the first half of 2026, Novartis said in a statement. “The Avidity team has built robust programs with industry-leading delivery of RNA therapeutics to muscle tissue,” Novartis CEO Vas Narasimhan said. “We look forward to developing these programs to meaningfully change the trajectory of diseases for patients.” Shares of Avidity jumped more than 40% ahead of the opening bell, while Novartis shares were down about 1%.

5. U.S.-Listed Argentine Shares Rise on President Milei’s Legislative Victory

Shares of U.S.-listed Argentine companies are surging after President Javier Milei’s La Libertad Avanza party won a landslide legislative victory. President Donald Trump had offered to provide financial support for Argentina but said that the bailout hinged on the outcome of the election. "BIG WIN in Argentina for Javier Milei, a wonderful Trump Endorsed Candidate?," Trump said on Truth Social. Shares of financial services companies Grupo Financiero Galicia SA (GGAL), Banco BBVA Argentina SA (BBAR) and Banco Macro SA (BMA) each gained more than 30% in premarket trading. Shares of oil company YPF (YPF) jumped about 25%, while shares of e-commerce firm MercadoLibre (MELI) added 7%.

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Microsoft will report results for the first quarter of its 2026 fiscal year after markets close on Wednesday.
Key Takeaways

• Microsoft is expected to report strong quarterly results after markets close on Wednesday, with continued strength in cloud computing and AI demand driving robust growth.
• Analysts and investors will be watching the company's capital expenditures for evidence that the infrastructure spending lifting AI stocks is on track to continue.
  

Microsoft is slated to report quarterly results after markets close Wednesday, and Wall Street analysts expect another solid showing.

“We view MSFT as the clear front-runner on the enterprise hyper-scale AI front despite increasing competition from Amazon/AWS and Google/GCP,” wrote Wedbush analyst Dan Ives in a note last week.

Analysts expect Microsoft to report adjusted earnings grew 11% to $3.68 per share in the first quarter of its 2026 fiscal year, according to estimates compiled by Visible Alpha. Wall Street is looking for revenue from Azure, Microsoft’s cloud computing platform, to increase by about 38% to around $23 billion, while total revenue is expected to increase 15% to $75.5 billion. 

Why This Is Significant

With its array of businesses spanning cloud computing, enterprise software and personal computing, Microsoft’s earnings can signal both the strength of AI demand and the health of the broader economy. As America’s third-most valuable company, Microsoft's stock has a greater impact than most on investors’ portfolios.

Analysts Are Bullish on Cloud Growth

Many analysts say anecdotal evidence points to an even stronger quarter than Wall Street is expecting. 

The feedback Deutsche Bank analysts have received from Microsoft customers “reflects an overwhelmingly positive consensus on Microsoft's fundamental and competitive standing,” they wrote in a note Thursday. Citi analysts also noted their conversations with Microsoft partners were resoundingly positive, with corporate and public customers indicating strong demand for Azure.

Bank of America analysts are forecasting total first-quarter revenue of $77 billion, but expect as much as 1% upside to that estimate, “driven by workload migration to Azure, strength in security and applications.” Wedbush concurred, calling Microsoft's forecast of 37% Azure growth "relatively conservative."

AI Investments Will Be In Focus

Microsoft is coming off a very strong earnings report in July, when it beat top- and bottom-line estimates and indicated cloud computing demand continued to outstrip supply. To meet that demand, the company estimated it would spend $30 billion on infrastructure in the most recent quarter.

Microsoft’s infrastructure spending will be one of the most closely watched figures in this week’s results. Its spending on cloud and AI data centers has fueled exponential sales growth at chipmaker Nvidia (NVDA). This week’s earnings from Microsoft and big tech peers Alphabet (GOOG), Amazon (AMZN), and Meta (META) will give Wall Street insight into the strength of the quarter for Nvidia and other AI infrastructure suppliers.

Bank of America analysts expect Microsoft’s full-year capital expenditures will total $125 billion, $10 billion more than the Wall Street consensus. “We are bullish on upward revisions to Microsoft's CapEx, which would likely be a catalyst for the stock,” the analysts wrote.

Microsoft Stock Is In a Rut

Microsoft shares have treaded water since popping on last quarter’s earnings report. The stock is down about 2% since the end of July, while the Nasdaq Composite is up nearly 10%. 

BofA attributes the underperformance to a shift in “AI infrastructure momentum away from Microsoft (to Oracle),” which last quarter reported a massive jump in orders from Microsoft-backed OpenAI. Saying that infrastructure spending will exceed prior estimates could help Microsoft regain that momentum, according to BofA.

Uncertainty about Microsoft’s relationship with OpenAI has also been an overhang for the stock, according to Deutsche Bank. The two companies last month signed a non-binding memorandum of understanding to extend their partnership, but much remains to be negotiated, including Microsoft’s access to OpenAI’s intellectual property and programming interfaces, as well as how ownership of OpenAI’s for-profit division will be structured. 

“How things may shake out across these key pillars is unclear, but we believe skeptics are underappreciating Microsoft's strong position to extract value here,” wrote Deutsche Bank’s Brad Zelnick and Bhavin Shah.

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Meta shares have added over one-quarter of their value in 2025
Key Takeaways

• Meta is scheduled to report its quarterly results after the closing bell Wednesday.
• Wall Street analysts are overwhelmingly bullish on the social media giant's stock heading into the results, expecting record revenues on strong gains in its ad business.

Meta has big AI goals, but can it convince investors to keep supporting its big spending?

The company's progress with AI will be in focus when the social media giant reports third-quarter earnings after the bell Wednesday, with investors likely to be watching closely for signs its investments are paying off. 

Meta Platforms (META), which expanded its capital expenditures projections twice this year to support its data center buildouts and hefty compensation packages for poached AI talent, could now face a higher bar to impress with its results.

Bank of America analysts said last week they're calling for a revenue beat of $50 billion driven by ad gains to support Meta's spending, slightly above the Street consensus compiled by Visible Alpha at $49.54 billion—which would represent a record high.

Meanwhile, the mean estimate for Meta's earnings per share at $6.71 would suggest year-over-year growth, but a decline from the previous quarter. Recent reports of layoffs and hiring freezes could point to some signs of strain in Meta's efforts to rein in costs.

Why This Matters to Investors

Meta has been more successful than many of its other big tech peers so far this year in convincing investors to support its AI goals. Thursday's results could represent the next big test to show it's made the revenue gains to justify its spending.

Wall Street analysts are overwhelmingly bullish on the social media giant's stock heading into the results, with all but one of the 21 analysts surveyed by Visible Alpha calling it a "buy" compared to just one "hold" rating. Their mean price target near $873 would suggest roughly 18% upside from Friday's close.

The stock has added over one-quarter of its value in 2025, making it one of the better-performing members of the Magnificent 7, behind Nvidia (NVDA) and Google parent Alphabet (GOOGL).

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Fed Chair Jerome Powell is set to speak this week after the central bank's next interest-rate decision.

A Federal Reserve interest rate decision and a string of Magnificent Seven earnings are among the coming week's top events for investors, who will also continue to monitor the effects of the government shutdown.

The Fed is generally expected to cut rates, and so many will look quickly to remarks from Fed Chair Jerome Powell for clues on what the central bank will do next. Last week the major U.S. indexes all posted gains, with a strong Friday session leaving the Dow finishing above 47000 for the first time.

Meanwhile, investors will digest a busy run of earnings as they listen for the latest on artificial intelligence (AI) developments and other updates from tech leaders Apple, Microsoft, Meta, Amazon, and Google parent Alphabet. Numbers from oil firms, health care providers, credit card issuers, heavy-equipment makers, travel bookers and beverage sellers are also due this week.

Read to the bottom for our calendar of key events—and one more thing. 

Rate Cut Expected Amid Shutdown-Driven Data Drought

Market watchers expect the Federal Reserve to reduce interest rates for a second time this year when it concludes its meeting on Wednesday. The central bank is seen reducing its federal funds rate by a quarter percentage point, bringing it down to a range of 3.75% to 4%.

The Fed’s next move comes amid increasing fears of weakness in the labor market; lower borrowing costs could help spur business activity and create more jobs. However, the rate cut decision arrives as inflation remains above the Fed’s target level, and rate cuts could mean upward pressure on prices.

The U.S. government shutdown is poised to enter its second month. The work stoppage has closed several statistical agencies that release data on employment, price levels, and other key economic metrics. Inflation data, factory orders, and the U.S. trade balance reports, originally scheduled for this week, are likely to be impacted by the shutdown. Private-sector data on consumer confidence, home price levels, and pending home sales are still on the schedule.

Magnificent Seven Reports Likely to Keep Focus on AI

Most of the Magnificent Seven will release quarterly earnings this week. They're expected to provide more news and context on the state of artificial intelligence spending, which could add to the recent stretch of volatile market movements.

It'll be a busy slate of corporate reports. Three big ones come Wednesday, with the world’s second-most valuable company, Microsoft, leading the list after it unveiled a new $40 billion AI data center deal that includes chipmaker Nvidia.  Alphabet’s report arrives as the search giant was reportedly close to sealing a major deal with AI startup Anthropic. Facebook parent Meta’s report is likely to provide more details into the company’s recent move into AI-power glasses. 

Thursday’s calendar is led by Apple, which is riding high after its share price hit a record on a strong sales report for its newly released iPhone 17 model. And investors may want to hear about internet outages at Amazon Web Services when it hosts its quarterly earnings call on Thursday afternoon. 

Earnings releases from Exxon Mobil, Visa, UnitedHealth Group, Caterpillar, Boeing, Eli Lilly, and Anheuser-Busch are likely to put attention on several other industrial sectors. 

Quick Links: Recap Last Week’s Trading | Read Investopedia’s Latest News

This Week’s Calendar

Monday, Oct. 27

• Data Delayed by the Shutdown: Durable-goods orders (September)
• Key Earnings: Welltower (WELL), Cadence Design Systems (CDNS), Waste Management (WM), Hartford Insurance Group (HIG)
• Nvidia developers conference in Washington, D.C. kicks off

Tuesday, Oct. 28

• Consumer confidence (October)
• More Data to Watch: S&P Case-Shiller home price index (August)
• Key Earnings: Visa (V), UnitedHealth Group (UNH), Novartis (NVS), Booking Holdings (BKNG), Royal Caribbean (RCL)
• Nvidia CEO Jensen Huang to give keynote address at developers conference in Washington, D.C.

Wednesday, Oct. 29

• FOMC interest-rate decisions
• Fed Chair Jerome Powell press conference
• More Data to Watch: Pending home sales (September)
• Data Delayed by the Shutdown: Advanced U.S. trade balance in goods (September), Advanced retail inventories (September), Advanced wholesale inventories (September)
• Key Earnings: Microsoft (MSFT), Google (GOOG, GOOGL), Meta (META), Caterpillar (CAT), ServiceNow (NOW), Verizon (VZ), Boeing (BA), CVS (CVS), Starbucks (SBUX), Carvana (CVNA)

Thursday, Oct. 30

• Data Delayed by the Shutdown: Initial jobless claims (Week ending Oct. 25), Gross domestic product (Q3)
• Key Earnings: Apple (AAPL), Amazon (AMZN), Eli Lilly (LLY), Mastercard (MA), Merck (MRK), Shell (SHEL), Gilead Sciences (GILD), Anheuser-Busch (BUD), Comcast (CMCSA)

Friday, Oct. 31

• Chicago Business Barometer (PMI) (October)
• Data Delayed by the Shutdown: PCE index (September), Employment cost index (Q3)
• Key Earnings: Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), Colgate-Palmolive (CL)

One More Thing

The Los Angeles Dodgers and the Toronto Blue Jays are facing off in the World Series. While only one team can win the Commissioner's Trophy, Investopedia's Aaron McDade has more on how much the players from each team stand to gain from being part of the Fall Classic.

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The AI rally has boosted the sales and stocks of companies across a range of industries.
Key Takeaways

• Optimism about artificial intelligence has lifted the prices of stocks across various industries, but nuclear power providers have seen their valuations become the most untethered from the bottom line.
• Investors, aware of how much electricity is required to train and run AI models, are willing to pay three times more for AI-exposed power stocks than they were just two years ago.
• The stocks of nuclear tech companies with little to no revenue, like Oklo and NuScale Power, have pulled back over the last week, but the companies still sport multibillion-dollar market values.

AI boom or AI bubble? That's been one of the most pressing debates on Wall Street of late.

Some investors see echoes of the Dotcom Bubble in Nvidia's (NVDA) and OpenAI's recent circular dealmaking bonanza and soaring stock prices. Others note the AI boom is being financed by hugely profitable tech companies, whose valuations aren't nearly as high as their Dotcom peers.

As Big Tech's AI spending has ballooned, so have the ranks of companies claiming a piece of the pie. The AI buildout has turbocharged the sales of unsexy, slow-and-steady businesses and transformed their stocks into buzzy growth names. It has also juiced the stocks of nascent companies that are years from self-sufficiency, creating pockets of exceptional froth within a pricey AI ecosystem.

Why This Is Important

The stocks that gain the most during sharp market rallies are often the stocks that, when sentiment turns negative, have the farthest to fall. That is especially true of young companies that, without substantial sales, rely on debt and equity markets to fund their growth.

To understand where the AI trade has become most bubbly, Investopedia identified 75 companies regularly referred to as "AI beneficiaries" by Wall Street analysts, and sorted each into one of five categories: cloud computing providers; semiconductor makers; software companies; power providers; and networking, storage, and cooling equipment makers.

A few companies, like Microsoft (MSFT), fit in multiple categories, in which case we've placed them in the one that feels most central to their AI business today. At present, Microsoft's cloud revenue is the best metric for assessing its AI business, so it's classified as a cloud provider instead of a software company.

Power Provider Stocks Seem The Frothiest

All five categories have seen their valuations rise over the past few years, but none more than power providers. The median price-to-sales (P/S) ratio of our power basket in 2025 is 4.53, nearly three times the median in 2023 (1.52). The next largest P/S expansions over that period were in networking, storage and cooling (4.45 in 2025 vs. 2.09 in 2023) and cloud providers (10.5 vs 6.34). (Cloud providers have a higher P/S ratio in absolute terms because the category is composed of tech stocks that have historically commanded higher valuations. This is why we've compared change over the past three years rather than absolute P/S ratios.)

Power also has more unprofitable companies than any other category—so many in fact that we’re using price-to-sales as our benchmark valuation metric rather than the more common price-to-earnings ratio. Five of the 14 companies in our power basket are expected to report a loss this calendar year. No other category has more than one unprofitable company. 

The race to build the data centers that train and run AI models has set off an equally frenzied race to generate and transmit the vast amounts of electricity those data centers consume. Nuclear energy has attracted interest from tech companies for its efficiency and small carbon footprint. Microsoft, Amazon (AMZN), Alphabet (GOOG), and Meta (META) have all signed multi-billion dollar deals with nuclear power plant operators like Constellation Energy Corp. (CEG) and Vistra (VST), both of which have seen their stocks surge over the past two years. 

But in their rush to bring reliable sources of electricity online, tech companies and investors have also thrown money at nuclear tech upstarts, some without operational generators or regulatory approvals. Shares of small modular reactor maker NuScale Power (SMR) doubled in value between January and mid-October. At the stock’s peak earlier this month, the company, which reported $37 million in revenue last year and isn’t expected to be profitable until 2029, was valued at more than $15 billion.

A Booming Stock Price With No Revenue?

Meanwhile, nuclear tech startup Oklo’s (OKLO) market capitalization peaked at $25.7 billion earlier this month, a 720% increase from the start of the year. Oklo is the only company of the 75 we’ve included in our analysis that is expected to report no revenue this year. Analysts forecast it will turn a profit for the first time in 2030. 

Though it’s not just nuclear businesses that have achieved rich valuations. Fermi (FRMI), the developer of a massive AI data center campus in the Texas Panhandle, was founded in January and went public in early October at a valuation of more than $19 billion. Fermi plans to build 11 gigawatts of computing capacity powered by on-site nuclear, natural gas, wind, and solar generators. It expects to break ground on its first data center in March, and hopes to have about 1 GW of capacity online by the end of 2026.

AI power stocks just finished a volatile week that may underscore the extent to which their prices are driven by fickle sentiment. Constellation Energy and Vistra both shed more than 10% of their value in the first half of the week, as did GE Vernova (GEV), whose turbines are in high demand from data center clients seeking to draw on the South’s ample supply of natural gas. All three finished the week little changed.

The upstarts were hit even harder. NuScale, Oklo, and Fermi all lost more than 25% of their value between Monday's open and midday Wednesday. But they too rebounded, finishing the week with losses in the low- to mid-teens.

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Hydration has grown into a multibillion-dollar business.
Key Takeaways

• U.S. stores sold some $4.5 trillion in drinks and beverage packaged as a way to help with hydration over the past year, according to NielsenIQ, a market research firm.
• Brands are introducing a bevy of powders, tablets and elixirs that promise to help with everything from stress management to gut health.

There are more ways to quench your thirst than ever—but that's not all they do.

There’s DryWater, a powder with 34 vitamins, minerals and other ingredients. Melt Water beverages are made by simulating the formation and thawing of glaciers. Dozens of electrolyte, prebiotic and probiotic products have hit the market—from Ka-Ex, a powder said to reduce cortisol levels and stress, to Jolly Rancher and Sonic-branded beverage enhancers meant to coax children into chugging too.

Brands are tapping into consumers’ desire for health and wellness and a culture focused on optimization, marketing experts said. In the past year, U.S. brick-and-mortar stores sold some $4.3 trillion in beverages and $236 million in beverage enhancers marketed as helping with hydration, according to NielsenIQ, a market research firm. 

The hydration segment is no longer just about empowering athletes, said Stacy Schwartz, director of the master of science in digital marketing program at Rutgers Business School. It's now also about restoring people's balance, building immunity, or aiding relaxation.

"Whatever aspect of your body that you want to finetune," she said, "there’s a water for that.”

What This News Means for Investors

Hydration is a multibillion-dollar business, and companies continue to find new ways to sell to thirsty consumers. Lately, the popularity of Liquid I.V. and other hydration products shows how big of a priority health and wellness has become, with many products now touting specific benefits .

Liquid I.V., pastel electrolyte crystals that come in flavors like blue cotton candy and rainbow sherbet, have become a household staple for a number of consumers. The product was the fifth most popular purchase during Amazon's (AMZN) Prime sale event earlier this month, according to market research firm Numerator. Liquid I.V. may soon become a $1 billion product, Fernando Fernandez, CEO of the brand’s parent company, Unilever, said on a conference call this month.

Companies have in the past decade moved away from the marketing messages traditionally associated with bottled water, which promised that it could replace what you’ve lost, said Jonathan Zhang, a marketing professor at Colorado State University. Now, he said, they tout the products as tools to embrace one’s potential as more Americans prioritize health and wellness.

“Several forces converged: the rise of wearable tech that made health measurable; social media aesthetics that equated self-care with aspirational lifestyles; and pandemic-era introspection, which made consumers more attuned to preventive and functional health,” Zhang said via email. 

In an era where many track their sleep, physical activity and diet, drinks that promise to address personal health needs have appeal, said Schwartz. The beverage may feel like an affordable splurge compared to a reiki session or massage, she said. (Some restaurants have begun catering to this thirst for luxury, tapping water sommeliers to create menus with options like Berg, a $95 bottle sourced from Newfoundland, Canada, The Wall Street Journal recently reported.)

By hydrating, people may have felt more control over their health and fate during the pandemic—and be hanging onto the idea in the face of economic uncertainty, political division and other society-wide stressors, said Emily Contois, professor of media studies at University of Tulsa.  

Stanley and Owala have sold scores of water bottles; several hydration apps have made a name for themselves; and social media is full of recipes for DIY electrolyte recovery drinks. But the market may not be saturated yet. About a quarter of consumers intend to drink more bottled or canned water in the coming year, according to surveys from Numerator. 

“We’re living in a moment where there’s so much distrust, uncertainty, precarity,” Contois said. “People turn inward to seek that sense of control, that sense of certainty, in the small, the mundane, the things about our everyday lives."

Matthias Balk / picture alliance / Getty Images

Ford was the best-performing stock in the S&P 500 Friday.
Key Takeaways

• A major automaker led gains on the S&P 500 Friday, while a shoes and apparel maker lost ground after warning about a pullback in consumer spending.
• Ford shares soared after the automaker posted quarterly earnings that topped analysts' estimates. 
• Deckers Outdoor shares plunged after the shoe and apparel maker said it expects consumers could pull back in the face of tariffs and higher prices.

Shares of a major automaker surged Friday on a strong earnings report, while a shoes and apparel maker lost ground after warning tariffs and higher prices could discourage shoppers.

Major U.S. equities indexes finished the week at record highs after the release of a cooler-than-expected inflation report, reinforcing expectations of an interest rate cut by the Federal Reserve next week. The Nasdaq rose 1.2%, the S&P 500 added 0.8%, and the Dow climbed 1% to finish above 47000 for the first time. All three indexes posted roughly 2% gains for the week. See here for more coverage from Investopedia of Friday's market moves.

Ford Motor (F) was the best-performing stock in the S&P 500 Friday, soaring over 12% after the automaker posted third-quarter earnings that topped analysts' estimates. The strong results overshadowed a cut to Ford's outlook, related to the impacts of a fire at an aluminum supplier. Shares of other big automakers, including General Motors (GM), also rose. Tesla (TSLA), which reported quarterly results late Wednesday, finished more than 3% lower.

Shares of International Business Machines (IBM) and Advanced Micro Devices (AMD) jumped nearly 8% to finish at record highs following a report that IBM found it could run a key quantum computing error-correcting algorithm on an easy-to-get and reasonably priced chip made by AMD.

Micron Technology (MU), which supplies memory solutions for AMD and Nvidia (NVDA) chips, also gained following the news, adding 6%. The SOX index of semiconductor stocks finished the day up 1.9%.

Deckers Outdoor (DECK) shares plunged more than 15% to lead decliners on the benchmark index. The Ugg and Hoka shoe maker gave a weaker-than-expected outlook, saying it anticipates a pullback in consumer spending because of tariffs and higher prices.

Shares of Newmont (NEM), the world's largest gold miner, fell 6.2% amid concerns about its production outlook, though its third-quarter results topped analysts' estimates as the price of gold has lately surged.

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The Federal Reserve is widely expected to cut its influential interest rate when it meets in October.
Key Takeaways

• The Federal Reserve's policy committee is widely expected to cut its benchmark interest rate by a quarter-point at the conclusion of its two-day meeting Wednesday.
  
• Fed officials are cutting rates to reduce borrowing costs on loans and support the job market.
  
• The Fed had been keeping rates higher for longer to fight inflation, but those concerns have taken a back seat as recent data have shown inflation to be stubborn but not surging out of control.
  

The Federal Reserve's policy committee is widely expected to cut its benchmark interest rate by a quarter-point Wednesday, as concerns about the deteriorating job market outweigh inflation fears.

The Federal Open Market Committee is likely to cut the fed funds rate to a range of 3.75% to 4%, its second cut in as many meetings, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data. In recent speeches, many members of the Fed's policy committee said they were open to cutting rates, although they remained divided about how quickly and how much to do so over the coming months.

Financial markets are pricing in near certainty the Fed will cut rates by a quarter-point Wednesday and then again at its final meeting in December. The outlook for future cuts is uncertain because the Fed is wrestling with both sides of its dual mandate from Congress to keep inflation low and employment high.

What This Means For The Economy

A rate cut will bring the fed funds rate closer to a "neutral" level where it's neither boosting nor hindering economic activity. Fed officials had been keeping it elevated because of high inflation, but lately, the weakening job market has become a more pressing concern.

While inflation remains above the Fed's goal of a 2% annual rate, officials have become more concerned about the health of the job market, as job creation has slowed nearly to a halt in recent months. By cutting the fed funds rate, the central bank drives down borrowing costs on short-term loans with the intention of encouraging borrowing and boosting hiring.

Tariffs are a factor in both the price increases and the job slowdown, as the import taxes fuel uncertainty among business leaders and discourage expansion, and push up prices as merchants pass costs along to customers.

Expectations for an October rate cut were cemented Friday when a report showed the Consumer Price Index rose less than expected in September. With the rate cut nearly a lock, financial markets will focus on the Federal Open Market Committee's official statement released with the rate cut decision, and Fed Chair Jerome Powell's post-meeting press conference that afternoon.

The Fed is now making rate decisions without much of the data it usually uses to guide its actions. Indeed, the September CPI may be the last major piece of economic data the Fed receives for some time. Important government reports, including on job growth, are being delayed by the ongoing government shutdown and may not be published for October at all.