Check out the companies making headlines in midday trading. Affirm — The buy now, pay later company saw shares tumble 10% after CNBC reported that Swedish fintech firm Klarna will replace Affirm as the exclusive provider of such loans for Walmart . Klarna, which just disclosed its intention to go public in the U.S., will provide loans to Walmart customers in stores and online through the retailer’s majority-owned fintech startup OnePay. Incyte — The pharmaceutical stock dropped 9% after the release of phase three trial data for a skin condition treatment. Incyte said that the trials of its drug met the primary endpoints. However, the drug was effective for less than half of the participants who took it in the trials. Norwegian Cruise Line — The cruise operator gained 4% following an upgrade to overweight from neutral at JPMorgan. Analyst Matthew Boss said that Norwegian Cruise Line’s management indicated that a more volatile macro backdrop has not contributed to any detectable change in demand behavior to date. Netflix — The streaming titan popped nearly 4% on the back of MoffettNathanson’s upgrade to buy from neutral. MoffettNathanson said Netflix can monetize more than previously anticipated, which can help grow profit. Sprouts Farmers Market — Shares added 3% after Deutsche Bank upgraded the organic food retailer to a buy rating from hold. The bank said that the franchise’s same-store sales momentum is sustainable and sees margin expansion opportunities, while the stock’s recent pullback — shares are down 20% in the past month — offers investors an attractive entry point. Blackstone — The alternative asset manager popped 3% following an upgrade to buy from neutral at UBS. Analyst Brennan Hawken said that the stock has an “attractive long term growth profile” and that investors have a chance to invest in a “premier alts platform” at a reasonable valuation. SL Green Realty — Shares climbed 2% after Evercore ISI upgraded the real estate investment trust to outperform from in line. The firm cited better leasing activity across core Midtown Manhattan submarkets, a potential casino license and a recent sell-off as catalysts for the upgrade. Monday.com — The stock popped almost 3% after D.A. Davidson upgraded the cloud-based project management software firm to a buy rating. Analysts pointed to a recent pullback as providing a “lucky” entry point, while reiterating their confidence in the company’s cash flow durability going forward. Intel — The beleaguered semiconductor manufacturer climbed nearly 8% after a regulatory filing from Friday revealed that incoming CEO Lip-Bu Tan will purchase $25 million worth of company shares within 30 days of his appointment. Tesla — The electric vehicle stock slipped 6% following a price target cut from Mizuho . Analysts expressed their caution on weaker EV sales ahead, but they still stood by their outperform rating. Mizuho’s new price forecast of $430, down from $515, still represents 72% upside from where shares of Tesla ended Friday. Robinhood — Shares of the stock trading platform moved 4% higher. Robinhood announced a new prediction markets hub in its app. Traders can use these event contracts to bet on the outcome of upcoming events, from sports tournaments to the Federal Reserve’s upcoming interest rate decisions. — CNBC’s Alex Harring, Yun Li, Jesse Pound and Nick Wells contributed reporting.
Individual investors, whose assets are more tied to the stock market than ever, have abandoned their tried-and-true dip-buying mentality as the S&P 500 recently fell into a painful, 10% correction.
Retail outflows from U.S. equities rose to about $4 billion over the past two weeks as tariff chaos and mounting economic concerns caused a three-week pullback in the S&P 500, according to data from Barclays. During March’s sell-off, 401(k) holders have been aggressively trading their investments, to the tune of four times the average level, according to Alight Solutions’ data going back to the late 1990s.
“If people were trying to buy the dip and get their stocks on sale, maybe you would see people actually buying large-cap equities. But instead we see people selling from large cap-equities,” said Rob Austin, director of research at Alight Solutions. “So this does appear to be a bit of a reactionary trading activity.”
The increased selling came as American households are more sensitive than ever to the turbulence in the stock market. U.S. household ownership of equities has reached a record level, amounting to nearly half of their financial assets, according to Federal Reserve data.
Dip-buying had served investors well over the past two years as Main Street rode the artificial intelligence-inspired bull market to record highs. At one point, the S&P 500 went more than 370 days without even a 2.1% sell-off, the longest such stretch since the global financial crisis of 2008-2009.
Nut lately, markets began to sour as President Donald Trump’s aggressive tariffs and sudden changes in policy stirred up volatility, stoking fears of dampened consumer spending, slower economic growth, weaker profits and maybe even a recession. The S&P 500 officially entered a correction late last week, and is now sitting some 8.7% below its February all-time high.
S&P 500
Still, retail traders are far from throwing in the towel. For example, the net debit of margin accounts, a “popular proxy for retail investors’ sentiment,” continues to stay elevated, according to Barclays data.
“There is plenty of room for retail investors to further disengage from the equity market,” analysts led by Venu Krishna, Barclays head of U.S. equity strategy, said in a note Tuesday to clients. “We are of the view that retail investors have in no way capitulated.”
Barclays’ proprietary euphoria indicator shows sentiment has been brought down to levels similar to where it was around the time of the U.S. presidential election in November, but is still high by historic standards.
“It’s not like everybody is going out there saying the sky is falling. Most people, it looks like, are not making any sort of reactions,” Austin said.
Check out the companies making headlines in midday trading. Tesla — Elon Musk’s EV company saw shares sliding another 3.9%, bringing month-to-date losses to a whopping 23%. The sell-off came after Tesla’s China rival Zeekr said it is rolling out advanced driver assistance-system for free . Meanwhile, RBC Capital Markets lowered its price target on Tesla amid lowered expectations around pricing for the the company’s self-driving capabilities. Alphabet — Shares of the Google parent slid 2.7%. Google said on Tuesday that it signed a definitive agreement to acquire cloud security startup Wiz for $32 billion in an all-cash deal. This deal is slated to be Google’s largest-ever acquisition. Palantir — Shares slid 2.4%, putting their month-to-date losses at around 6%. Jefferies also reiterated the defense technology stock as underperform , saying valuation remains a concern. Nvidia — The chipmaker retreated 1.7% ahead of the CEO Jensen Huang’s keynote speech at the company’s GTC AI Conference. Lucid — The electric vehicle stock climbed 14% following Morgan Stanley’s upgrade to equal weight from underweight. Morgan Stanley said Lucid has an emerging bull case tied to artificial intelligence. Sarepta Therapeutics — The biotechnology company plunged 20% after disclosing the death of a man who was treated with its Elevidys gene therapy. Sarepta said in a statement that acute liver injury is a known potential side effect. Eastman Kodak — Shares of the film and chemicals manufacturer fell 4.6% after the company reported mixed fourth-quarter results. Eastman Kodak posted consolidated revenues of $266 million, compared with $275 million for the fourth quarter of 2023, reflecting a 3% decrease. The company reported a jump in net income for the fourth quarter, however, generating $26 million in net income for the quarter. That’s up from $5 million in the year-ago period. Peabody Energy — The coal mining company advanced 3.7% after President Donald Trump, writing on his social media platform Truth Social , said he is authorizing energy production using coal. Willis Tower Watson — The commercial insurance stock climbed 2% on the heels of UBS’ upgrade to buy from neutral. UBS said the company has seen faster improvement on operating and free cash flow margins than peers. Millrose Properties — The residential land developer popped nearly 10% after the company declared a dividend and issued new guidance. Millrose will pay shareholders 38 cents per share. It added that it sees fiscal second-quarter earnings per share between 65 cents per share and 68 cents. Hims & Hers Health — The digital health stock tumbled 8% after the Food and Drug Administration shared concerns around unapproved GLP-1 drugs used for weight loss, including compounded versions. Hims & Hers began prescribing compounded semaglutide last year. — CNBC’s Brian Evans, Pia Singh, Yun Li and Fred Imbert contributed reporting.