Thursday's Biggest Movers

Thursday was a landmark day as S&P 500 futures broke past 5,400 for the first time, driven by the Federal Reserve's steady interest rates and a surprising dip in May's inflation. With S&P 500 and Nasdaq 100 futures climbing, let's look at two stocks that grabbed headlines: Paramount and AMD.

Paramount's Struggles Amid Downgrade

Paramount Global (PARA) hit a rough patch with Wells Fargo downgrading the stock to Underweight, slashing the price target to $9 from $14. This downgrade followed the abrupt halt of merger talks with Skydance, leaving Paramount facing a $15 billion debt load, tough competition in streaming, and a shrinking ad market.

The new leadership is focused on revamping the streaming strategy, improving operational efficiency, and optimizing assets to reduce debt. Yet, the high uncertainty makes Paramount a stock to watch for potential short-term volatility.

AMD's Bullish Momentum

In contrast, Advanced Micro Devices (AMD) is riding high. Edward Jones initiated coverage with a Buy rating and added it to the Stock Focus List. This move was fueled by expected growth from increasing demand for data-center infrastructure, driven by AMD's leading GPUs and CPUs.

This optimism positions AMD as a prime candidate for day traders looking to capitalize on short-term market movements. 

Mixed Signals in the Broader Market

The broader market showed mixed signals. S&P 500 futures rose 0.19%, Nasdaq 100 futures climbed 0.77%, while Dow Jones Industrial Average futures fell 0.22%. Broadcom shares surged 14% after exceeding Q2 expectations and announcing a 10-for-1 stock split. Conversely, Dave & Buster's Entertainment shares dropped 10% following a revenue miss.

The S&P 500 and Nasdaq Composite closed at record highs, with gains of 0.85% and 1.53%, respectively. The Fed's acknowledgment of "modest further progress" toward its 2% inflation target and the expectation of only one rate cut in 2024 fueled market optimism. The May producer price index is expected to shed more light on inflation trends.

Neither Sean Kelland nor Stocks.News have positions in the companies mentioned.