Thursday’s big stock stories: What’s likely to move the market in the next trading session
President Donald Trump's recent social media posts targeting specific industries triggered sharp sell-offs in related stocks on Wednesday, though some sectors rebounded after hours on shifting expectations.
Housing Stocks Tumble: Shares of major institutional landlords plunged after Trump announced steps to ban large investors from buying single-family homes. Invitation Homes fell 6%, Blackstone dropped 5.6%, and Apollo Global lost 5.5%. The broader S&P homebuilder index has fallen 11% over the past month, making it the worst-performing sector. Leading builders Lennar and D.R. Horton have dropped 16% and 12%, respectively, in that period.
Defense Stocks Hit, Then Rebound: Defense contractors also sold off after Trump stated he "will not permit" them to issue dividends or buybacks until they address manufacturing speed, executive pay, and equipment maintenance. Lockheed Martin fell nearly 5%, Northrop Grumman dropped 5.5%, and General Dynamics lost 4.2%. However, all these stocks rallied significantly after hours on speculation that the defense budget might be larger than previously anticipated.
Sectors Lagging the Broader Market: Despite the S&P 500 hitting a new intraday high, several sectors remain notably below their peaks. Energy is 4% off its Monday high, Technology is 5.7% below its October high, and Real Estate, Consumer Staples, and Utilities are 7% to 9.8% below their respective recent highs.
Cannabis in Focus: Cannabis company Tilray is set to report earnings after the bell. Its stock, down 61% from an October high and 38% over the past year, has shown recent momentum with a 22% gain over the past month. It remains a fraction of its historic 2018 peak of $3,000 per share, closing Wednesday at $8.99.
The market's volatile reaction underscores the immediate impact of presidential rhetoric on specific industries, even as longer-term fiscal expectations (like a larger defense budget) can quickly reverse sentiment.
