Noon Market Summary: Nasdaq Falls 1.0% as Energy Sector Surges 4.0% on Commodity Gains; SpaceX Acquires xAI for $1.25T

The U.S. market delivered a mixed performance at noon, with energy and materials sectors surging while tech stocks faltered. The Dow Jones Industrial Average rose 0.08% to 49,447.79, the S&P 500 dipped 0.45% to 6,945.17, and the Nasdaq Composite plummeted 1.02% to 23,351.93. Commodities soared: gold futures jumped 6.46% to $4,953.3, copper rallied 4.03% to $6.0605, and silver surged 14.73% to $88.355. Energy led the sector rally, gaining 1.92%, while materials surged 4.02%. Tech and communication services lagged, with the Nasdaq’s decline driven by a 2.66% drop in Nvidia (NVDA) and a 2.28% slide in Microsoft (MSFT). Market sentiment remains split, with energy gains offsetting tech weakness.

Hot Stocks

Energy Giants:

• Woodward (WWD): +15.75%
• Southern Copper (SCCO): +10.06%
• Freeport-McMoRan (FCX): +6.60%

Tech & Innovators:

• Tesla (TSLA): +1.01%
• Apple (AAPL): +0.17%
• Microsoft (MSFT): -2.28%
• Nvidia (NVDA): -2.66%

Chinese ADRs & Movers:

• Tian Ruixiang (TIRX): +182.28%
• Huachen AI Parking (HCAI): +16.09%
• Gaxos (GXAI): +57.80%

Materials & Mining:

• Hecla Mining (HL): +8.17%
• Pan American Silver (PAAS): +5.95%

Macro & Corporate News

1. SpaceX Acquires xAI for $1.25T to Fuel AI Ambitions

Elon Musk’s SpaceX merged with his AI startup xAI in a $1.25 trillion deal, creating a vertically integrated AI and space infrastructure company. The move aims to leverage SpaceX’s satellite network to power low-cost AI data centers in space, challenging rivals like OpenAI and Google. The merger, valued at $1 trillion for SpaceX and $250 billion for xAI, signals Musk’s aggressive push to dominate AI and space innovation.

2. U.S.-India Trade Deal Cuts Tariffs, Boosts Market Sentiment

President Trump announced a trade agreement with India, reducing tariffs from 25% to 18% and halting U.S. sanctions on Indian oil imports. The deal, expected to boost U.S. exports to India by $500 billion over five years, lifted global markets, with India’s Nifty 50 surging 5%. The pact also aims to strengthen supply chains and counter the EU-India trade agreement, though details on implementation remain unclear.

3. Trump’s ‘Trump Homes’ Initiative Aims to Tackle Housing Crisis

Homebuilders like Lennar (LEN.B) and Taylor Morrison proposed a $250 billion “Trump Homes” plan to build 1 million affordable homes. The initiative, which would convert rental payments into down payments after three years, seeks to address high housing costs but faces challenges from elevated interest rates and political hurdles. The plan aligns with Trump’s pro-development agenda but lacks government funding commitments.

4. Fed’s Kevin Warsh Faces Pressure to Cut Rates Amid Dollar Weakness

The dollar weakened to 0.85 euros, down from 0.98 a year ago, as investors anticipate rate cuts under new Fed Chair Kevin Warsh. Trump’s directive to Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds aims to lower rates temporarily, but analysts caution that inflation and Treasury yields may keep rates above 5.9% in 2027. The Fed’s independence is under scrutiny as Warsh navigates Trump’s demands for aggressive rate cuts.

5. Crypto Market Bottoming Out as Gold Hits 14-Year High

Bitcoin and Ethereum rebounded after a sharp selloff, with crypto analyst Tom Lee claiming the market is near a bottom. Gold surged 6.46% to its largest daily gain since 2008, driven by capital flight to safe assets and political uncertainty. The U.S. dollar’s weakness and the Fed’s potential rate cuts further fueled demand for precious metals, with silver’s 14.73% jump underscoring the trend.

6. PayPal’s CEO Shake-Up and Earnings Woes

PayPal replaced CEO Alex Chriss with Enrique Lores (ex-HP) after forecasting weaker 2026 earnings. The stock fell 17% premarket as investors reacted to declining branded checkout growth and leadership uncertainty. Lores, a tech veteran, faces challenges in stabilizing PayPal’s core business and competing with fintech rivals like Stripe and Square.