US stock futures, including the S&P 500 and Dow, rose on rate-cut expectations. UnitedHealth's shares surged after Berkshire Hathaway purchased a new stake. However, Applied Materials' shares declined due to weak China demand and tariff risks. Associated British Foods acquired Hovis Group, and US futures and European stocks rose. Australian shares are set to rise on global optimism and strong jobs data.
US stock futures, including the S&P 500 and Dow, rose on expectations of rate cuts. UnitedHealth's shares surged after Berkshire Hathaway purchased a new stake, while Applied Materials' shares declined due to weak demand in China and tariff risks. Associated British Foods acquired Hovis Group, and US futures and European stocks rose. Australian shares are set to rise on global optimism and strong jobs data.
Berkshire Hathaway, led by Warren Buffett, bought 5 million UnitedHealth shares, sending the stock soaring by seven percent in after-hours trading. This purchase, worth about $1.6 billion, comes as UnitedHealth faces significant challenges, including high medical costs, federal investigations, and low profit forecasts. UnitedHealth shares have dropped 46% in 2025, highlighting the company's struggles [1].
Applied Materials, a semiconductor equipment maker, reported weak demand in China and erratic orders from customers facing uncertainty due to tariffs. The company forecast fourth-quarter revenue of $6.70 billion, falling short of analysts' estimates, and shares fell 14.25% in premarket trading. Analysts cited heavy exposure to China, weakness in the ICAPS segment, and uneven spending in advanced foundry and logic as reasons for the underperformance [2].
Associated British Foods acquired Hovis Group, a move that could impact the UK market. US futures and European stocks rose, reflecting broader optimism in global markets. Australian shares are expected to rise on global optimism and strong jobs data.
References:
[1] https://economictimes.indiatimes.com/news/international/us/buffetts-berkshire-hathaway-buys-5-million-unitedhealth-shares-reveals-new-stake-in-insurer/articleshow/123312884.cms
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3U70C5:0-street-view-china-hurdles-impact-applied-materials-but-outlook-remains-strong/
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