S&P 500 Hits New Highs on July 3, 2025: Paramount Jumps 6.9% Amid Skydance Merger Buzz
On July 3, 2025, the S&P 500 surged 0.5% in a shortened trading day, closing at a fresh record high for the second consecutive session. Paramount Global led gains following news of a revived merger deal with Skydance Media, while other key stocks showed mixed performance ahead of Independence Day.
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Highlights of the Trading Session
- The S&P 500 climbed 0.5% on July 3, 2024, marking its second consecutive record close in a shortened pre-holiday session.
- Paramount Global shares surged 6.9% after reports of a tentative merger deal with Skydance Media revived investor optimism.
- Walgreens Boots Alliance shares dropped 4.1% following a UBS downgrade and disappointing earnings results.
In a trading day curtailed to 1 p.m. ET ahead of Fourth of July celebrations, major U.S. equity indexes showed mixed results. The S&P 500 closed higher, reaching a new all-time high for the second day running. Meanwhile, the Nasdaq Composite also advanced 0.9%, setting another record, while the Dow Jones Industrial Average dipped slightly, weighed down by losses in healthcare stocks such as UnitedHealth.
Paramount Global Leads the Rally
Shares of Paramount Global (PARA) soared 6.9%, outpacing all S&P 500 stocks. This rally followed reports that the company has reached a preliminary agreement to merge with Skydance Media, reigniting talks after negotiations stalled last month. The proposed deal involves Skydance acquiring National Amusements, the controlling shareholder of Paramount, before merging with the entertainment powerhouse.
First Solar (FSLR) also gained momentum, climbing 6.6% after recovering from earlier losses. Despite a recent price target cut from Baird citing revised pricing and cost expectations, First Solar remains well-positioned to meet growing demand for clean energy solutions powering AI data centers. However, upcoming political developments this fall could influence the company’s trajectory, given its exposure to tariffs and tax incentives under the current administration.
Tesla Continues Its Upward Drive
Tesla (TSLA) shares jumped 6.5%, extending gains from the previous day after the EV manufacturer reported stronger-than-expected second-quarter vehicle deliveries. Investors are now eagerly awaiting Tesla’s quarterly earnings report scheduled for July 23, with analysts focusing on auto gross margins and potential updates on new product launches.
Conversely, Walgreens Boots Alliance (WBA) faced a 4.1% decline, the steepest in the S&P 500, after UBS downgraded the stock. The company continues to grapple with challenges following an earnings miss, lowered guidance, and plans to shutter underperforming stores.
Constellation Brands Ends Lower Despite Mixed Earnings
Alcoholic beverage giant Constellation Brands (STZ) posted mixed fiscal first-quarter results for 2025, beating earnings per share forecasts but slightly missing revenue expectations. Modelo Especial remains the top-selling U.S. beer, with beer sales growing year-over-year, though wine and spirits sales declined. After an initial uptick, shares closed down 3.3%.
Shares of Humana (HUM) slid 3.2% amid news of a class-action lawsuit accusing the insurer of misleading investors about the pandemic’s impact on medical procedure demand and insurance usage, which allegedly hurt earnings.
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