In a major development in the technology sector, Cisco Systems (NASDAQ:CSCO) announced on Thursday that it is acquiring cybersecurity company Splunk (NASDAQ:NASDAQ:SPLK) for $157 per share, in a cash deal valued at approximately $28 billion. The announcement led to a 4.2% drop in Cisco's share price, while Splunk's stock price surged by 21.2%.
On the same day, shares of Broadcom (NASDAQ:NASDAQ:AVGO) fell by nearly 2% following reports that Google (NASDAQ:GOOGL) may cease its collaboration with the artificial-intelligence chip supplier in favor of internally-developed chips as early as 2027.
In other market news, FedEx (NYSE:NYSE:FDX) shares climbed 4.4% following mixed fiscal first-quarter earnings results. The company reported adjusted earnings of $4.55 per share, surpassing the $3.73 forecast by analysts polled by LSEG. However, its revenue of $21.68 billion fell short of expectations of $21.81 billion.
Shares of companies in the housing sector experienced a downturn on Thursday, after data revealed a decline in U.S. existing home sales in August due to tight supply and rising prices. Homebuilder stock KB Home (NYSE:NYSE:KBH) slid 3%, PulteGroup (NYSE:NYSE:PHM) was down 3.6%, D.R. Horton (NYSE:DHI) fell nearly 4%, and Zillow (NASDAQ:NASDAQ:ZG) lost almost 3%.
Meanwhile, shares of streaming companies Paramount (NASDAQ:PARA), Netflix (NASDAQ:NASDAQ:NFLX), and Disney (NYSE:DIS) moved higher as writers and producers neared a potential end to the Writers Guild of America strike.
In financial news, investors are still processing the latest interest rate decision from the Federal Reserve. The central bank left rates unchanged but signaled a potential interest rate hike before the end of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.