KeyCorp Stock Soars as Scotiabank Acquires Stake, Impacting S&P 500

Top Stock Movers Now: KeyCorp, Nvidia, Starbucks, Albemarle, and More

The Bank of Nova Scotia paid $2.8 billion for a 14.9% stake in KeyCorp, sending the latter bank's shares higher. U.S. equities were mixed Monday afternoon as the market awaited a plethora of new economic data, including key reports on July consumer and wholesale inflation. The S&P 500 and Nasdaq rose, but the Dow was lower. KeyCorp (KEY) shares jumped as the Bank of Nova Scotia agreed to pay $2.8 billion to take a 14.9% stake in the regional bank. Starbucks (SBUX) shares gained on a report that hedge fund Starboard Value has taken a stake in the world's biggest coffee chain, and wants changes made to boost the share price. Nvidia (NVDA) climbed after Bank of America said the artificial intelligence chipmaker would be a good play as the semiconductor sector bounces back later this year. Albemarle (ALB) was the worst-performing stock in the S&P 500 as the world's biggest lithium producer struggles with tumbling lithium prices and China's grip on the metal needed for batteries that power EVs and more. Shares of Hawaiian Electric Industries (HE) tumbled as the parent of Hawaiian Electric said the company may not be able to continue as a viable operation because it hasn't found a funding source to pay for a legal settlement over the huge wildfires in Maui last year. Kraft Heinz (KHC) shares fell as Goldman Sachs analysts initiated coverage with a Sell rating, warning that the maker of ketchup and other food products faces significant challenges ahead. Oil and gold futures rose. The yield on the U.S. 10-year Treasury note declined. The U.S. dollar was rose against a basket of leading currencies. Bitcoin was lower over the past 24 hours, trading below $60,000.

S&P 500 Gains and Losses Today: KeyCorp Stock Soars as Scotiabank Acquires Stake

Shares of Albemarle tumbled amid an ongoing slump in lithium prices. Major U.S. equities indexes were little changed on Monday. Fresh off a week of volatile trading driven by economic concerns, key data on inflation, retail sales, and the housing market will be in focus this week for those trying to assess the health of the economy. The S&P 500 was essentially flat to start the trading week. Technology was the top-performing sector, helping the Nasdaq edge 0.2% higher, while the Dow was down 0.4%. KeyCorp (KEY) shares surged 9.1%, marking the top daily performance in the S&P 500, after the regional bank announced a $2.8 billion investment from Bank of Nova Scotia (BNS). The transaction gives Scotiabank a 14.9% stake in KeyCorp. The company said the investment from the Canada-based financial giant represented an optimal way to raise capital and enhance its strategic position. Super Micro Computer (SMCI) shares added 6.3%, clawing back a portion of the losses posted last week after the server and data storage firm posted lower-than-expected quarterly profits. Supermicro noted that its decreased gross margins during the quarter reflected higher costs of ramping up production of its direct liquid cooling (DLC) technology for artificial intelligence (AI) data centers. A report in The Wall Street Journal over the weekend highlighted the potential for liquid cooling to improve data center energy efficiency, suggesting Supermicro's DLC investments could pay off. Shares of AI chip behemoth Nvidia (NVDA) gained 4.1% as Bank of America named the stock one of its top "rebound" picks. Analysts pointed to Nvidia's solid position in the data center market as tech giants prepare to boost infrastructure spending. More positive commentary came from analysts at UBS, who said a reported delay in the launch of Nvidia's Blackwell AI chip could turn out to be less consequential than originally anticipated. Shares of Albemarle (ALB), the world's largest lithium producer, tumbled 6.9%, posting the widest loss of any S&P 500 stock. Slumping lithium prices, which have fallen more than 80% since the beginning of 2023 amid lower electric vehicle (EV) demand, remain an overhang on Albemarle stock. In its most recent earnings report, the company disclosed a $188 million net loss and said it would add to a growing list of cost-reduction initiatives. Solventum (SOLV) shares slid 4.8% on the day after analysts at Wells Fargo trimmed their price target on the stock. The medical technology company, which completed its spinoff from 3M (MMM) in April, reported second-quarter results last week, announcing a 70% year-over-year decline in net income, based on figures carved out from 3M's health care business. Reduced sales growth for wound care and surgical sterilization products weighed on Solventum's performance. Shares of Warner Bros Discovery (WBD) fell 4.5%, extending losses posted in the wake of Thursday's earnings report. The entertainment giant reported a quarterly loss of nearly $10 billion, reflecting the impact of a write-down in the value of its cable networks. The cable business remains under pressure from cord-cutting and the success of streaming services.