📊 Market Watch: Fed Rate Cuts, AI Cloud Deals, Sweet Upgrades & Trade Setups

☁️ CoreWeave Jumps on $6.3B Nvidia Deal, Citizens Sees 49% Upside

US:CRWV:CoreWeave
US:NVDA:Nvidia
US:MSFT:Microsoft
US:ORCL:Oracle

CoreWeave surged after announcing a $6.3 billion order from Nvidia, sending shares up 7% Monday and fueling expectations of more large-scale contracts. Citizens JMP Securities upgraded the AI cloud infrastructure provider to market outperform with a $180 target — more than 49% upside from Monday’s close.

Analyst Greg Miller sees the GPU-as-a-Service market ballooning from $3–4 billion in 2025 to $300 billion by 2030, with CoreWeave well-positioned as hyperscalers increasingly outsource GPU clusters. He also pointed to Oracle’s rising performance obligations and Microsoft’s steady demand as signs of accelerating industry adoption.

Despite enthusiasm, sentiment is split: 15 of 26 analysts rate the stock a hold, while eight recommend buy or strong buy. Shares closed at $118.75 Tuesday, down 1.43% after hours.

🍫 Goldman Sachs Turns Sweet on Hershey With Double Upgrade

US:HSY:Hershey
US:GS:Goldman Sachs

Hershey received a rare double upgrade from Goldman Sachs, moving from sell to buy, with its price target raised to $222 from $170 — more than 19% upside. Analyst Leah Jordan cited easing cost pressures, improved market share trends, and pricing power that could drive outsized earnings growth in FY26.

Jordan also highlighted gains in seasonal candies, mints, and convenience stores thanks to Hershey’s “gold standard planogram” strategy, expected to reach 60% of c-stores by year-end. Shares climbed nearly 3% in premarket Tuesday, adding to a 9% YTD rise. Still, most analysts remain cautious, with 17 of 24 maintaining a hold rating.

📉 Citi Maps Out the Winners From Falling Interest Rates

US:DOCU:DocuSign
US:ELF:e.l.f. Beauty
US:GPS:Gap
US:LW:Lamb Weston Holdings
US:REX:REX American Resources
US:RUN:Sunrun
US:SATS:EchoStar

Citi strategist Scott Chronert says rate-cut winners will depend on the economic backdrop. If growth remains steady, growth stocks and small/mid-caps could thrive. But if conditions weaken, defensives and low-beta names may outperform.

Among the most rate-sensitive stocks, Citi highlighted DocuSign, e.l.f. Beauty, Gap, Lamb Weston, REX American Resources, Sunrun, and EchoStar. Gap has rebounded 8% this quarter despite tariff warnings, while EchoStar has surged more than 200% in 2025, boosted by a $17 billion spectrum deal with SpaceX and a Deutsche Bank target hike to $102.

☕ Starbucks Trade Setup: Oversold Signals Point to Potential Rebound

US:SBUX:Starbucks

Starbucks has been under pressure since its weak July 29 earnings, lagging the broader market’s rally. But with the Fed expected to cut rates, traders are eyeing oversold setups.

• RSI: Near oversold levels, hinting at reversal potential.

• DMI: Bearish pressure easing as DI+ trends higher.

• MACD: Fast setting shows a bullish crossover nearing.

Trader Nishant Pant outlined a bull call spread:

• Buy $82 call, sell $83 call, expiring Oct. 10

• Cost: $50, Max Profit: $50

The trade offers defined risk and reward, doubling if shares close at or above $83 by expiration.

Thank you