Pleasing Price Gains and Exciting Acquisitions in Focus

Recent reports of a potential takeover have given a significant video game publisher a fresh boost, while weak sales figures in the US market weighed on the stock price of a well-known warehouse club. The leading US stock indices ended their three-day losing streak as a key inflation indicator met expectations. This development could allow the Federal Reserve to continue its interest rate reduction policy. The S&P 500 rose by 0.6%, the Dow Jones increased by 0.7%, and the Nasdaq improved by 0.4%. Shares of video game maker Electronic Arts benefited from speculation about a possible going-private transaction, leading to a nearly 15% increase in value. According to a report by the Wall Street Journal, an investor group, including the Public Investment Fund of Saudi Arabia and private equity firm Silver Lake, may be willing to invest $50 billion in the publisher - one of the largest leveraged buyouts of all time. US President Donald Trump announced new tariffs that also affect imports of pharmaceuticals, certain furniture, and heavy-duty trucks. Paccar, the parent company of renowned truck brands such as Peterbilt and Kenworth, saw a price increase of over 5% after previously addressing the uncertainty caused by trade tariffs. Intel continued its recent upward trend, gaining 4.4%. Talks with Apple and potential investment and partnership options with TSMC fueled this increase. Nvidia, the world's largest company by market capitalization, had recently announced a $5 billion cooperation with Intel. Boeing shares climbed 3.6% after the Federal Aviation Administration allowed the aircraft manufacturer to issue airworthiness certificates for certain models of its 737 Max and 787 jets. These relaxed regulations could accelerate Boeing's production and delivery plans and were further strengthened by the order of 225 aircraft from Turkish Airlines. Shares of the wholesaler Costco fell nearly 3%, despite solid quarterly results, as sales figures in US stores fell short of expectations. Although many customers are attracted to low prices amid economic uncertainties, consumers remain cautious with non-essential purchases. Oracle shares lost 2.7% after Rothschild Redburn issued a sell recommendation. Analysts warned of inflated expectations for the software provider’s cloud division. EBay shares lost about 2% after the platform announced an acquisition of the Norwegian marketplace Tise. Despite better-than-expected quarterly results, investors remained skeptical.