Stocks moved sharply in Tuesday's midday trading. AI-linked chip and photonics stocks tumbled as investors turned risk-off, Meta Platforms slid as a child-safety trial opened, and Klarna and Baidu dropped on weak results, while Amylyx surged on trial data and Home Depot ticked higher.
Photonics and AI infrastructure names led the session's losses. Coherent and Lumentum tumbled about 12% and 9%, respectively, while Ciena lost around 10% and Teradyne slid 9%. Cloud computing name CoreWeave also fell 9% as investors took a risk-off posture toward the AI build-out trade.
Meta slides as child-safety trial opens
Meta Platforms shares slid 3% after a trial began in which a group of states is suing the company over alleged harm to children and teens. Meta's attorneys have previously said the case could result in damages as high as $1.4 trillion.
Klarna and Baidu drop on weak numbers
Buy-now-pay-later stock Klarna tumbled 21% after guiding Q3 revenue to between $940 million and $980 million, below the $1.11 billion analysts polled by FactSet had expected. The company also cut its 2026 gross merchandise value guidance.
Baidu fell too. Baidu's stock dropped 12% after second-quarter earnings per average diluted share came in at 7.22 yuan, below the FactSet consensus of 9.35 yuan. Revenue of 31.33 billion yuan also missed the 31.78 billion yuan estimate.
Gains among the movers
Not every name fell. Amylyx Pharmaceuticals surged 53% after its avexitide treatment met its primary and secondary endpoints in a Phase 3 trial. Home Depot shares were marginally higher after fiscal second-quarter results beat expectations and the retailer reaffirmed its full-year guidance. Memory chip makers moved lower too: Micron and SK Hynix fell nearly 7% and 8%, while Sandisk dropped more than 8%.
Source: CNBC
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