Closing Bell: Stocks Retreat with FOMC in Focus

Key Points

• Markets dipped ahead of the FOMC meeting, with SPX down 0.35%, NDX off 0.25%, and RUT flat; Information Technology was the only sector to finish positive.
• IBM agreed to acquire Confluent for $31/share, valuing the company at ~$11B.
• Marvell was downgraded as competitive pressures rose, following reports that Microsoft may explore custom AI chip development with Broadcom.

Markets started the week lower as traders adjust positioning ahead of Wednesday’s FOMC meeting. The S&P 500 (SPX) fell 0.35%, the Nasdaq-100 (NDX) closed 0.25% lower, and the Russell 2000 (RUT) finished the session roughly flat. Information Technology was the only sector in positive territory, while Communication Services and Materials lagged.

IBM Moves to Acquire Confluent (CFLT)

IBM announced plans to acquire cloud data services provider Confluent for $31 per share, valuing the company at an enterprise value of roughly $11 billion. Confluent shares surged 29% on the news. IBM expects the acquisition to become free-cash-flow accretive within two years of closing. IBM shares finished up 0.4% in the session.

Marvell (MRVL) Downgraded Amid Competition Fears

Following reports that Microsoft—one of Marvell’s largest customers—may be in advanced discussions with Broadcom (AVGO) to design future custom AI chips, analysts have begun revising their views on the stock. Benchmark downgraded Marvell to Hold and removed its price target, citing elevated competitive risks.

Key Market Events for Tomorrow

• 06:00 AM ET: NFIB Small Business Index
• 08;30 AM ET: ADP Weekly Employment Change (Tentative)
• 10:00 AM ET: JOLTS Job Openings
• 10:00 AM ET: CB Leading Index
• 01:01 PM ET: 10-y Bond Auction
• 04:30 PM ET: API Weekly Statistical Bulletin

Notable Earnings for Tomorrow

• Premarket: AZO, CPB, OLLI
• Postmarket: CASY, GME

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