S&P 500 Q4: 16 Stocks That Moved the Market
The S&P 500's fourth-quarter earnings season highlighted a clear divide in the market. Although the index fell by 2.62% (January 8 – March 9), the artificial intelligence (AI) boom propelled technology and infrastructure companies to new heights. Meanwhile, many other sectors, such as construction and healthcare, grappled with rising costs and weakening outlooks, reflecting broader economic uncertainty.
Results: Operating profit surged by an explosive 54.5%, and revenue grew by 39.6%. Reasons: The growth was driven by a surge in sales of artificial intelligence (AI) servers, fulfilling a large portion of previous orders. Market Reaction: The stock rallied nearly 20% after the results, confirming Dell's position as a key winner in the AI boom.
Results: Operating profit grew exceptionally by 309.7%, turning last year's loss into a profit. Reasons: The result was supported by explosive demand for AI infrastructure, which increased data center occupancy and prices. The stabilization of energy costs also contributed. Market Reaction: The stock reacted to the results with a strong rally, rising over 10% on the first day and has maintained a high level since.
Results: Operating profit growth accelerated to 22.4%, and revenue increased by 20.8%. Reasons: The growth was driven by strong demand for semiconductors in the artificial intelligence, data center, and automotive sectors. Market Reaction: The stock initially reacted positively but has since fallen due to news of an accounting error, which overshadowed the strong results.
Results: Operating profit growth accelerated sharply to 32.2%, exceeding expectations. Reasons: The growth was driven by the launch of new projects in the Gulf of Mexico and increased natural gas transportation volumes, also supported by the growing energy needs of data centers. Market Reaction: The stock rose after the results and has continued its steady growth, reflecting investor confidence in its stable cash flow.
Results: Operating profit growth slowed to 4.7%, although revenue increased by 13.9%. Reasons: Profitability was hampered by investments in a new data center strategy. However, it is this very strategy that has generated market optimism related to the AI boom. Market Reaction: Despite the profit slowdown, the stock has rallied over 20% thanks to the AI-related narrative and a revaluation of its land assets.
Results: Operating profit plummeted by 80.1%, and revenue fell by 12.1%. Reasons: The results were hit by the sharply cooling US housing market, caused by high interest rates, which reduced demand for building materials. Market Reaction: The stock dropped sharply after the results and has continued to decline, losing nearly 20%, reflecting market concerns about the sector's outlook.
Results: Operating profit grew by 19.9%, but the growth slowed significantly. Reasons: Growth was supported by US tax incentives but was hampered by weakness in its Asian factories and higher costs. Market Reaction: A disappointing 2026 forecast caused the stock to fall sharply. The stock has declined by over 20% since the results.
Results: The company reported an operating loss of $159 million, compared to a $350 million profit a year earlier. Reasons: The loss was caused by significantly higher-than-expected medical costs, a broader issue across the entire US health insurance sector. Market Reaction: The stock plummeted nearly 20% after the results as investors doubt the company's ability to get costs under control.
Results: The company turned last year's $580 million loss into a $401 million operating profit. Reasons: The turnaround was driven by a successful restructuring plan that reduced costs and improved margins, especially supported by the recovery of the Chinese market. Market Reaction: Despite the strong turnaround, the stock fell nearly 20% on the day of the results and has remained low, indicating market concern about the future.
Results: Operating profit grew by 36.6%, turning the previous quarter's loss into a strong profit. Reasons: The success was driven by a change in e-commerce strategy that improved profitability and strong sales of its private-label brands. Market Reaction: The stock rose nearly 10% after the results, thanks to a strong forecast and a new share buyback program.
Results: Operating profit plummeted by 74.4% due to the downturn in the crypto market. Reasons: Profitability was reduced by low trading activity from retail investors. Market Reaction: Despite the weak results, the stock has rallied nearly 30% since the announcement, supported by the rise in Bitcoin's price and optimism about new products.
Results: The company reported an operating loss of $38 million, mainly due to one-off costs. Reasons: The loss was caused by significant restructuring costs and a goodwill impairment charge for its European business. Core business sales grew slightly. Market Reaction: The stock fell nearly 15% on the day of the results and has remained under pressure, losing over 20% in total.
Results: The company reported an operating loss of $729 million. Reasons: The large loss was primarily due to a goodwill impairment and one-off costs related to the spin-off of its renal care business unit. Market Reaction: The stock dropped over 15% on the results and has continued to fall, reflecting investor disappointment and a weak forecast.
Results: Operating profit declined, falling by 14.3%. Reasons: The decline was caused by the normalization of post-pandemic demand, as the construction of new pools has slowed significantly. Market Reaction: The stock fell nearly 15% on the day of the results and has remained at a low level, as the market outlook remains weak.
Results: Operating profit growth accelerated to 27.4%, and revenue increased by 6.0%. Reasons: The strong results were driven by large US infrastructure projects and successful pricing, which offset weakness in residential construction. Market Reaction: The stock initially reacted modestly but has since fallen by over 10% due to analysts cutting their profit forecasts.
Results: Operating profit growth accelerated to an impressive 37.0%. Reasons: The growth was driven by a record quarter for Moody's Investors Service, supported by a revitalized bond market, and stable growth from Moody's Analytics. Market Reaction: The stock rose over 6% on the results and has continued to climb, reflecting strong business performance and cost control.
Conclusion
The fourth-quarter earnings season was characterized by several clear patterns. First, the artificial intelligence (AI) revolution created a clear divide between winners and losers. Companies like Dell, Equinix, and Monolithic Power Systems showed explosive growth thanks to demand for AI servers, data centers, and chips. This trend also extended to infrastructure, supporting energy firms like Williams Companies.
Second, consumer-facing sectors faced headwinds. High interest rates are cooling the housing market (Builders FirstSource) and reducing demand for more expensive leisure goods, such as pools (Pool Corp). This reflects consumer caution.
Third, the results of many companies (Genuine Parts, Baxter) were distorted by large one-off restructuring and impairment costs, which made the headlines look weaker than the underlying business performance. Finally, the future forecast proved more important than past results—even good quarterly results couldn't save a stock from falling if the outlook was disappointing (First Solar). In summary, it was a season of contrasts, where technological enthusiasm collided with broader economic uncertainty.
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