Editor
The phrase market movers usually conjures images of complex algorithmic shifts, but today’s trading floor felt decidedly more old-school: it was a story of the “haves” and “have-nots” in the race for artificial intelligence infrastructure. While the tech giants continue to fight for dominance, the companies building the literal nuts and bolts of the digital age—cooling fans, power grids, and chips—are the ones currently reaping the whirlwind of investor optimism.
The AI Infrastructure Gold Rush
Nowhere was this more evident than with Vertiv. The data center cooling specialist saw its stock skyrocket nearly 20% after handily beating Wall Street’s expectations. It turns out that keeping AI servers from melting is a very lucrative business. The company reported a massive acceleration in fourth-quarter orders, signaling that the build-out of physical data centers isn’t slowing down—it’s hitting a second gear.
“We are seeing a decoupling between general enterprise software and the physical infrastructure required to run it,” says Elena Rossi, a senior industrial analyst at NorthCap Equities. “Vertiv isn’t just riding a wave; they are the wave.”
Even BorgWarner, a name traditionally synonymous with greasy car parts and internal combustion engines, managed to pivot into the spotlight. The stock jumped 20% to a 52-week high after announcing it would supply turbine generators for AI data centers starting in 2027. It’s a classic “re-rating” play that caught the Street by surprise.
Sentiment Shifts and the “Einhorn Effect”
In the healthcare sector, Acadia Healthcare found a powerful ally in David Einhorn. The Greenlight Capital founder told CNBC he’s been buying the dip, betting that new management can scrub away previous underperformance. The “Einhorn Effect” provided a 10% lift, proving that in a volatile market, a vote of confidence from a titan still carries more weight than a standard analyst note.
Gilead Sciences also managed a late-day recovery, climbing 5% as investors looked past a soft 2026 revenue forecast to focus on the long-term potential of Yeztugo, its HIV prevention drug. It was a rare bright spot in a pharmaceutical sector that saw Moderna slide 6% after the FDA gave a “cold shoulder” to its experimental flu shot, refusing to even review the application.
The Earnings Graveyard: Toys and Tech
However, the day wasn’t all rallies and champagne. The consumer and software sectors felt like a cold shower. Mattel was perhaps the biggest casualty, tumbling 24% after a dismal fourth quarter. Not even the holiday season could save the toy maker from a massive earnings miss and a subsequent double-downgrade from Citi and JPMorgan.
“Mattel is facing a structural problem,” Rossi notes. “When the consumer pulls back, the ‘fun’ budget is the first to go, and their 2026 guidance suggests they don’t see the cavalry coming anytime soon.”
Zillow Group and Lyft also found themselves in the red, falling 16% and 14% respectively. For both companies, the story was the same: the numbers today were fine, but the outlook for tomorrow was cloudy. In a market this jumpy, “fine” is rarely enough to keep a stock afloat.
Looking Ahead: Narrowing Windows
The day’s market movers suggest a widening gap between companies tethered to the AI “hyperscale” build-out and those relying on the average American consumer’s wallet. As we move deeper into the quarter, watch for whether the “AI halo” can continue to protect companies like Generac—which rose 17% despite missing earnings—simply because they are becoming key suppliers to data centers.
The trend is clear: if you aren’t powering the AI revolution, you’d better have a very convincing story for why you aren’t.
