Stocks Rise as Truce Prospects Weighed | Closing Bell
Speakers
Summary
- Major indexes rose on the session, with the S&P 500 gaining ~0.5% and the Russell 2000 outperforming, up 1.2%.
- Market breadth was positive (322 advancers vs. 180 decliners in the S&P), with 9 of 11 sectors higher. Energy was the underperformer (-0.5%), while Consumer Discretionary and Materials led, up ~2%.
- Commodity markets, particularly oil, were volatile and sensitive to geopolitical headlines. Brent crude recovered from a 7% drop earlier in the session as optimism for a ceasefire between the U.S. and Iran fluctuated.
- ARM Holdings surged ~16% after announcing it would begin selling its own chips (AGI CPU), with Meta as its first major customer. The company expects $15B in annual revenue from the new business within five years.
- The space/satellite sector rallied on a report of SpaceX weighing a massive IPO (~$75B valuation). EchoStar, Rocket Lab, and AST Space Mobile saw gains of 7.5% to 10.5%.
- JetBlue spiked ~13% on reports it is considering selling itself, having hired advisors to explore a tie-up with a competitor like United or Alaska.
- Energy and chemical stocks faced pressure as Iran rejected a ceasefire proposal. Valero fell ~3%, also impacted by a refinery fire.
- GENERAC Holdings fell nearly 2% (off lows of -6%) as investors were disappointed by the lack of a hyperscale agreement announcement at its Investor Day.
- On Holdings plunged >11% after the CEO announced he would step down, to be replaced by co-CEOs, a move analysts said could add complexity to decision-making.
- Insurance executives expect a U.S. recession within the next three years but plan to increase allocations to private assets, viewing private equity as the best-performing asset class over the next 12 months.
Trade Ideas
ARM Holdings soared 16% after announcing it will begin selling its own chips (AGI CPU), with Meta as its first major customer. The company expects the new chip business to generate $15 billion in annual revenue within five years, signaling a significant new growth vector. The market reaction and substantial revenue target indicate strong bullish conviction in the strategic shift. Execution risk in ramping up a new hardware business and competition in the chip design space.
EchoStar, Rocket Lab, and AST Space Mobile rallied 7.5% to 10.5% on a report that SpaceX is considering an IPO with a potential ~$75 billion valuation. The news of a landmark space IPO is generating investor enthusiasm and positive sentiment spillover into related public companies. The group move indicates a bullish read-across effect, where anticipation of a major liquidity event boosts valuations in the sector. The SpaceX IPO is not confirmed, and these moves are based on speculation; fundamentals of the individual companies may not have changed.
Valero fell ~3%, pressured by broader energy sector weakness due to geopolitical uncertainty and an idiosyncratic refinery fire. The company is dealing with operational disruption (fire at Port Arthur refinery) amid a volatile commodity price environment driven by ceasefire hopes/fears. The combination of macro headwinds and company-specific operational issues presents unattractive near-term risk. A sustained rally in oil prices or a swift resolution of the refinery outage could reverse the pressure.
GENERAC fell nearly 2% (after being down over 6%) following its Investor Day, where investors were disappointed by the absence of a announced hyperscale agreement. While the company gave guidance and discussed backlog growth, the lack of a concrete partnership with a hyperscaler was a key negative takeaway. The market's negative reaction to unmet expectations suggests the stock lacks a near-term catalyst and may be prone to disappointment. The company could announce a hyperscale partnership later, providing a positive catalyst.
On Holdings fell more than 11% after the CEO announced he would step down, to be replaced by co-CEOs (the company's co-founders) in May. Analysts cited the new co-CEO structure as potentially adding complexity to the company's decision-making process. The significant sell-off reflects a market view that the leadership change introduces execution risk and governance uncertainty. The transition could be smooth, and the co-founders may successfully execute the stated goal of preserving "entrepreneurial speed."
Up Next
This Bloomberg Markets video, published March 25, 2026, features Katie Greifeld discussing ARM, ASTS, RKLB, VLO, GNRC, ONON. 5 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Katie Greifeld · Tickers: ARM, ASTS, RKLB, VLO, GNRC, ONON