Late Night Stock Market Recap

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Night.Owl masters market recaps, offering sharp analysis that uncovers hidden patterns and key moves. Stay ahead with Night.Owl’s expert insights.
 

•  07 Oct 2025
 

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$AMD emerged as the undisputed star of the session, soaring over 6% in early trading to top both the Nasdaq 100 and S&P 500 movers lists. The chipmaker's spectacular rise came on the heels of a landmark multibillion-dollar partnership with OpenAI, which analysts are calling a validation moment for the AI industry. Advanced Micro Devices crossed above its average analyst target price of $189.22, trading at $203.71 per share as the market digested the implications of this strategic alliance. Multiple Wall Street firms weighed in positively, with Barclays, Benchmark, Wells Fargo, and Truist Securities all maintaining bullish ratings on the stock. Jefferies upgraded AMD to buy, projecting a potential rally of more than 47% ahead. Goldman Sachs suggested the OpenAI deal could unlock $135 billion in revenue and mount a serious challenge to Nvidia's long-standing dominance in AI hardware. However, famed short-seller Jim Chanos questioned whether the deal's financial benefits matched the market's enthusiasm, asking if the partnership should bring in more revenue for the chipmaker. Despite this skepticism, Piper Sandler found the deal highly accretive, and analyst Dan Ives called it the second inning of a nine-inning game. Year to date, AMD has registered an impressive 79.8% gain, and CEO Lisa Su expressed confidence that the big bet with OpenAI could pay off tens of billions of dollars.

$DELL Technologies saw its shares climb 3.51% after the company raised its annual revenue growth targets and announced plans to increase its quarterly dividend by at least 10% annually. The computer manufacturer lifted its long-term financial forecasts, citing massive growth opportunities from AI server demand. Dell's AI business is driving the company's optimistic outlook, with management seeing consistent financial performance ahead. The stock popped as investors embraced the company's elevated growth expectations for the next four years, positioning Dell as a key beneficiary of the ongoing AI infrastructure buildout.

$APP AppLovin experienced a volatile session, initially falling hard on reports of an SEC probe before rebounding powerfully on Tuesday. The stock had dropped for a fourth consecutive day on Monday, losing 14.03% after Bloomberg reported that the company has been subject to inquiries from the Securities and Exchange Commission. However, analysts quickly stepped in to calm investor fears, with Morgan Stanley maintaining its Overweight rating and raising its price target. The firm sees a key catalyst ahead for AppLovin's AI-powered advertising platform, and other analysts emphasized that the company's growth story remains intact despite what they called SEC inquiry noise. The sharp reversal on Tuesday demonstrated the market's confidence in AppLovin's underlying business fundamentals.

$AEHR Aehr Test Systems crashed as tariff concerns led the company to delay reinstating its guidance. The semiconductor testing equipment maker posted first-quarter earnings but disappointed investors with its cautious outlook amid trade policy uncertainty. The stock joined SANUWAVE Health and other names moving sharply lower in Tuesday's pre-market session, reflecting broader concerns about how tariff policies might impact technology and industrial companies.

$IBM shares climbed 1.67% following the announcement of a strategic partnership with Anthropic to integrate the AI model Claude into select internal and external development tools and enterprise products. The collaboration aims to boost productivity while embedding security, governance, and cost management into AI deployments. IBM rallied to record highs as the market viewed the partnership as a significant step forward in the company's efforts to capture enterprise AI business. The deal positions IBM to compete more effectively in the rapidly growing market for artificial intelligence solutions designed specifically for business customers.

$DELL Dell Technologies gained 3.51% on strong AI momentum, with the company committing to consistent dividend growth alongside its raised revenue forecasts. Management emphasized that it sees massive growth opportunity from AI, particularly in server infrastructure that powers machine learning and large language models.

$STZ Constellation Brands shares traded 1.1% higher after reporting better-than-expected second-quarter financial results, despite net sales slipping due to softness in the wine and spirits business. The beer segment showed resilience with 7% year-over-year growth, and management signaled its intent to sustain marketing investment and maintain its price pack architecture amid macroeconomic headwinds. The beverage company turned to quarterly net profit helped by declining expenses, though it cut its annual reported earnings outlook. Analysts noted that while headwinds remain, Constellation Brands is banking on brand loyalty to carry it through the challenging environment.

$DLTR Dollar Tree faced downward pressure, falling 3.01% after Jefferies downgraded the stock, arguing that new pricing tiers and increased competition make margin recovery unlikely. The discount retailer is struggling versus competitors, and the analyst firm believes it's time to leave Dollar Tree behind as the company grapples with structural challenges in its business model.

$AEP American Electric Power crossed above its average analyst target of $115.04, trading at $115.66 per share and gaining 2.16% to lead the utilities sector higher. Evercore ISI Group initiated coverage with an Outperform rating, highlighting the company's position in the best-performing sector of the day as utilities climbed 0.3% by midday Tuesday.

$COF Capital One Financial dipped slightly by 0.07% despite Barclays maintaining its Overweight recommendation with a price forecast suggesting 21.24% upside potential. Analysts believe the financial services company is poised to beat earnings estimates again based on its impressive earnings surprise history and strong fundamentals. The stock has outperformed the market over the past five years by 7.91% on an annualized basis, producing an average annual return of 21.59%.

$BLK BlackRock declined 1.17% as the asset management giant moved lower ahead of next week's earnings release. Goldman Sachs and Morgan Stanley both maintained positive ratings on the stock, with Buy and Overweight recommendations respectively, though analyst price forecasts suggest only modest upside of 0.33%. The company doesn't possess the right combination of factors suggesting a likely earnings beat in its upcoming report.

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