Robinhood debuts in prediction markets, stocks fall on Labor Day

The operator of a major online trading platform got a boost after announcing a joint venture to expand its reach into prediction markets, while weak growth forecasts weighed on the HR software company.

Major US stock indexes extended their pre-Thanksgiving holiday winning streak to four straight sessions on Wednesday amid growing optimism about a December interest rate cut. The S&P 500 and Dow Jones each advanced 0.7%, and the Nasdaq added 0.8%. See here for more Investopedia In today’s market movements.

Robinhood Markets (HOOD) shares rose nearly 11% to lead the S&P 500 higher. The trading platform operator announced a plan to acquire a stake in LedgerX, a clearinghouse for cryptocurrency derivatives, in coordination with Susquehanna International Group. With the move, Robinhood is expanding its offerings in prediction markets, which allow customers to trade contracts based on the outcomes of future events.

Dell Technologies (DELL) shares jumped nearly 6% after the maker of computers, servers and networking equipment raised its full-year sales and profit forecasts. The company said it is seeing strong AI-driven demand, with standard AI server orders totaling more than $12 billion to date.

Oracle (ORCL) stock rose 4% on Wednesday. Shares of the database software and cloud infrastructure giant have suffered significant losses over the past month amid concerns about the company’s relationship with OpenAI, its high valuation, and its massive spending plans on artificial intelligence. However, analysts at HSBC and Deutsche Bank noted that the sell-off may be exaggerated.

Shares of Workday (WDAY), a provider of cloud-based HR software, fell nearly 8% to post the biggest daily loss in the S&P 500. Although Workday’s third-quarter results were mostly in line with expectations, its fourth-quarter subscription revenue outlook failed to impress. The company cited weak demand from higher education clients who rely on federal funding and a cautious spending environment among corporate clients.

Shares of Deere & Company (DE) fell nearly 6% after the farm and construction equipment manufacturer warned that the difficult market environment could continue into next year. Chief Executive John May noted that tariffs were contributing to pressure on Deere’s margins and pointed to challenges across the wider agricultural sector.