Nvidia's stock rose 2% and Microsoft's increased nearly 4% in premarket trading after they announced a new processor for personal computers. This news positively impacted companies like Dell and HP, which are set to manufacture computers using the new chip, with their shares rising 1.5% and over 3.5%, respectively.
Arm, which contributed technology to Nvidia's chip, saw a substantial 14.5% increase. Conversely, Nvidia's competitors, including Qualcomm, Intel, and Advanced Micro Devices, experienced declines, with Qualcomm dropping 9.5% and Intel losing more than 6.5%.
In another significant development, Taylor Morrison Home's shares surged almost 23% after Berkshire Hathaway agreed to acquire the company for $6.8 billion, with Berkshire's CEO Greg Abel praising Taylor Morrison as a top homebuilder. Yum Brands gained 1.5% amid reports of potential talks to sell its Pizza Hut brand.
Summit Therapeutics' stock rose 2.5% following promising results from a late-stage trial of its lung cancer drug in China. International Business Machines (IBM) saw a 13% jump after Barclays initiated coverage with an overweight rating, highlighting the potential of quantum computing.
The software sector also experienced a rally, with the iShares Expanded Tech-Software Sector ETF rising 4.5% and notable gains from companies like ServiceNow and Salesforce. In contrast, trading platforms Robinhood and Coinbase fell as Bitcoin prices dipped below $73,000, with Robinhood down nearly 3% and Coinbase declining 2%