Alibaba (BABA) Jumps 10%, FuelCell Energy (FCEL) Sinks 18% in Wednesday Trading
U.S. stock futures moved lower on Wednesday morning as rising tensions between the United States and Iran increased concerns about stability in the Middle East and the safety of oil shipments through the Strait of Hormuz.
Dow Jones futures fell 1.08%, while S&P 500 futures lost 0.86%. Meanwhile, Cboe Volatility Index (VIX) futures rose 2.03%, showing that investors were becoming more cautious. Markets were also waiting for the release of the Federal Reserve’s meeting minutes later in the day.
The yield on the 10-year U.S. Treasury climbed to 4.574%, adding pressure to stocks as higher borrowing costs continue to weigh on the market.
Alibaba Leads Market Gains
Alibaba was the biggest gainer of the session, with its shares jumping about 10%.
The rally came after the company reported that losses in its instant-commerce business narrowed during the June quarter while the overall division remained profitable. This eased investor concerns ahead of Alibaba’s earnings report scheduled for August 28.
The company also reported strong growth in its cloud computing and artificial intelligence (AI) business, while continuing its share buyback program. Alibaba’s gains also lifted other Chinese technology stocks listed in Hong Kong as investor confidence in the sector improved.
MasTec also gained around 2% after announcing its acquisition of Superior Group in a deal worth about $1.65 billion. The acquisition is expected to increase the company’s revenue, earnings, and cash flow, with Superior projected to generate between $2.2 billion and $2.5 billion in revenue during fiscal 2027.
FuelCell Energy and Kura Sushi Decline
FuelCell Energy posted the biggest loss of the day, with its shares falling 18%.
The decline followed the company’s announcement of a public offering of 10.71 million shares at $21 each, raising about $225 million. The funds will be used to expand manufacturing facilities and support working capital needs.
Kura Sushi shares fell around 5% after the company lowered its fiscal 2026 revenue forecast to between $330.5 million and $331.5 million, below analysts’ expectations of $334.1 million.
Although second-quarter revenue increased 16% compared with a year earlier, higher food and beverage costs caused by tariffs pressured the company’s outlook. Management said better labor productivity helped improve restaurant operating margins.
Crypto and Commodities
Bitcoin fell 2.71% to around $62,031.
Brent crude oil futures jumped 5.61% as investors worried that tensions around the Strait of Hormuz could disrupt global oil supplies.
Gold futures slipped 2.30%, while Asian stock markets also ended lower. Japan’s Nikkei 225 dropped 2.11%, and China’s Shanghai Composite declined 0.49%.
