Stocks Struggle to Make Headway Near Record Highs: Markets Wrap – Yahoo Finance

(Bloomberg) — Stocks hovered near all-time highs as traders weighed risks ranging from tariffs to inflation and the geopolitical scenario.

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Most S&P 500 shares rose, but several big techs slipped.

A set of uncertainities has prevented equities from breaking above their record for weeks. A full-fledged trade war could weigh on overseas profits of multinationals. Inflation remains sticky and the Federal Reserve appears in no rush to cut rates.

“The market is still trying to break out of the consolidation it’s been in since early December,” said Chris Larkin at E*Trade from Morgan Stanley. “News out of Washington, especially on the tariff front, could continue to be a wild card.”

Top officials from the US and Russia met for a first round of talks over the war in Ukraine but excluded that country’s leaders from the meeting, as President Donald Trump seeks a quick resolution to the conflict.

The S&P 500 was little changed. The Nasdaq 100 wavered. The Dow Jones Industrial Average fell 0.2%.

Meta Platforms Inc. halted a 20-day rally. Intel Corp. surged on speculation it could be broken up. Walgreens Boots Alliance Inc. soared as CNBC said that a take-private deal with Sycamore Partners is possible.

The yield on 10-year Treasuries advanced four basis points to 4.52%. The Bloomberg Dollar Spot Index rose 0.1%.

Global stocks have become the most-popular asset class with investors, who are showing the biggest willingness to take risk in 15 years, according to a survey by Bank of America Corp.

Fund managers’ cash levels fell to the lowest since 2010, while 34% of participants said they expect world equities to be the best-performing asset in 2025, the survey showed. A net 11% indicated they were underweight bonds.

Investors are “long stocks, short everything else,” strategist Michael Hartnett wrote in a note. The bullishness was underpinned by expectations of robust economic growth and lower US interest rates this year, he said. About 89% of respondents said US equities were overvalued, the most since at least April 2001.

Corporate Highlights:

• Elon Musk’s artificial intelligence startup xAI debuted its updated Grok-3 model, showcasing a version of the chatbot technology to challenge OpenAI days after the billionaire’s unsolicited cash bid to buy the company was rejected.

• Intel Corp. surged on speculation that the iconic chipmaker could be broken up in a deal involving Taiwan Semiconductor Manufacturing Co. and Broadcom Inc.

• Super Micro Computer Inc. jumped after the beleaguered chipmaker issued an aggressive long-term revenue outlook and pledged to meet a Nasdaq deadline to file audited financial results.

• Walgreens Boots Alliance Inc. shares soared after CNBC said that a take-private deal with private equity firm Sycamore Partners is still possible.

• Southwest Airlines Co. will cut about 1,750 jobs in its leadership ranks, a dramatic step to reduce expenses that mark the first layoffs in the carrier’s history.

• Constellation Brands Inc. jumped after Berkshire Hathaway Inc. reported a new position in the Corona and Modelo maker.

• Frozen food company Conagra Brands Inc. dropped after cutting its fiscal 2025 guidance.

• Medtronic Plc slipped after the medical-device maker reported revenue for its fiscal third quarter that missed expectations.

• United Rentals Inc. abandoned its plan to acquire H&E Equipment Services Inc., declining to increase its original offer of $3.4 billion for the rival construction equipment supplier.

• Fidelity Investments, the world’s third-largest asset manager, saw assets in its funds rise by $1 trillion over the past year and revenue jump to a record high.

• Continental AG is cutting around 3,000 research and development jobs at its automotive unit as the German parts maker prepares to spin off the struggling business.

• Baidu Inc. reported a smaller-than-expected revenue drop, alleviating concerns its internet search and artificial intelligence businesses are buckling under fierce competition.