S&P 500 Surges 0.9% Amid Market Optimism; Walgreens Faces Sharp Decline Following DOJ Lawsuit

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Key Highlights

• The S&P 500 rose 0.9% on Tuesday, marking a positive start to the trading week after President Donald Trump's return to office.
• Oracle's shares surged over 7% amid news of its involvement in a $500 billion AI infrastructure initiative in the United States.
• Walgreens experienced a steep 9.2% drop after the U.S. Department of Justice filed a lawsuit alleging improper prescription practices.

Major U.S. stock indices advanced as markets reopened following the Martin Luther King Jr. holiday and President Trump's inauguration. Investors reacted positively despite a series of executive orders, noting the absence of immediate tariff implementations, which hinted at a potentially more moderate trade policy.

The S&P 500 climbed by 0.9%, the Nasdaq increased 0.6%, and the Dow Jones Industrial Average gained 1.2%, buoyed by strong industrial sector performance.

Nuclear energy stocks rallied, supported by Trump’s appointment of Chris Wright to lead the Department of Energy, signaling a renewed focus on nuclear power expansion. Vistra Energy (VST) surged 8.5% after evacuation orders related to a plant fire were lifted, marking the highest gain in the S&P 500. NRG Energy (NRG) also rose 6.7%.

Oracle (ORCL) jumped 7.2% following reports of its participation in Stargate, a landmark $500 billion private-sector collaboration aiming to enhance AI infrastructure, alongside partners like SoftBank and OpenAI.

Prologis (PLD), a logistics-focused REIT, outperformed expectations with strong Q4 core funds from operations, pushing shares up 7.1%. Increased demand for warehouse space, driven by importers preparing for potential tariffs, contributed to the robust performance. The company also divested a Chicago-area data center during the quarter, though financial specifics were not disclosed.

Walgreens Boots Alliance (WBA) shares plummeted 9.2%, the steepest decline among S&P 500 stocks, after the DOJ sued the company for allegedly dispensing millions of prescriptions without legitimate medical justification. The lawsuit accuses Walgreens of pressuring pharmacists to fill prescriptions rapidly, leading to improper opioid distribution. Walgreens refuted the claims, labeling the lawsuit as an attempt to enforce unfounded regulations.

Booking Holdings (BKNG) shares dropped 4.9%, reversing gains from the previous week despite Morgan Stanley’s optimistic price target upgrade, which highlighted the potential of the company’s generative AI tool. However, intense competition and reliance on lead generation continue to pose challenges.

First Solar (FSLR) saw a 4.9% decline amid concerns over solar equipment market difficulties in India, which could affect sales in Malaysia and Vietnam. BMO Capital Markets maintained an "outperform" rating but noted uncertainties in the renewable energy sector under the new administration.

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