After a tumultuous week, U.S. stock futures pointed to a positive start as investors seized the opportunity to buy equities at a discount. European markets also experienced a surge, largely driven by expectations of increased defense spending.

Tesla Rebounds on Morgan Stanley Endorsement

Tesla shares jumped nearly 3% after Morgan Stanley’s Adam Jonas named the electric vehicle giant as his new top pick in the U.S. auto sector. Jonas predicted a potential 50% bounce in Tesla’s stock, signaling confidence in the company’s long-term prospects despite recent challenges.

Southwest Airlines Downgraded by JPMorgan

Shares of Southwest Airlines fell 2% following a downgrade from JPMorgan. Analyst Jamie Baker lowered the airline’s rating from neutral to underweight, citing concerns over valuation and future profitability. Baker stated that Southwest’s best margin and return on invested capital (ROIC) days may be behind it, leading to a cautious outlook on the stock.

Crypto Stocks Surge on Trump’s Strategic Crypto Reserve Details

Crypto-related stocks saw significant gains after former President Donald Trump provided additional details on the highly anticipated U.S. strategic crypto reserve. Notably, Coinbase and Robinhood rose by 9% and 8%, respectively. The reserve will include bitcoin, ether, and other riskier assets such as XRP, Solana’s SOL token, and Cardano’s ADA. MicroStrategy also benefited from the news, climbing 13%.

Allegro MicroSystems Spikes on Takeover Interest

Allegro MicroSystems shares soared 15% after Bloomberg reported that ON Semiconductor has expressed interest in acquiring the chipmaker. Sources suggest other potential buyers may emerge, particularly those looking to enhance their automotive semiconductor capabilities. ON Semiconductor shares gained about 1% following the report.

As investors look ahead, market sentiment appears to be shifting, with strategic buying and sector-specific catalysts driving momentum. Stay tuned for more updates on Wall Street’s evolving landscape.