Walgreens stock plummets as DOJ files lawsuit

Major U.S. stock indexes advanced as markets began a shortened trading week following the Martin Luther King Jr. holiday and President Donald Trump’s inauguration.

Despite a series of executive orders signed in the opening moments of his new presidency, Trump notably did not impose tariffs that he has previously indicated he would impose on day one, suggesting the possibility of a less aggressive stance on trade than expected.

The S&P 500 rose 0.9% on Tuesday. The Nasdaq rose 0.6%, while a better performance in the industrials sector helped lift the Dow 1.2%.

Shares of nuclear power generators edged higher on the first day of trading in the second Trump administration. Chris Wright, chosen by Trump to head the Department of Energy, has stressed that the US will prioritize nuclear power generation as it aims to increase energy production. Vistra ( VST ) shares rose 8.5% on Tuesday, the S&P 500’s best performer, after authorities lifted evacuation orders related to a fire at a company plant in Monterey County, California. NRG Energy (NRG) shares rose 6.7 percent.

Shares in Oracle ( ORCL ) rose 7.2% following reports that the software giant would participate in a $500 billion program aimed at improving artificial intelligence (AI) infrastructure in the United States. CBS NewsTrump is set to announce a massive private investment — a joint venture known as Stargate that will also include Japanese holding company SoftBank ( SFTBY ) and research organization OpenAI.

Prologis ( PLD ), a real estate investment trust (REIT) focused on logistics facilities, reported better-than-expected core funds from operations (FFO) in the fourth quarter, and its shares rose 7.1%. A surge in demand for storage space – boosted by importers stockpiling goods in anticipation of potential tariffs under the new presidential administration – helped drive the strong performance. Prologis also sold a data center facility in the Chicago area during the quarter, but did not disclose the financial details of the transaction.

Walgreens Boots Alliance ( WBA ) shares fell 9.2%, the biggest loser of any S&P 500 stock. The US Department of Justice filed a lawsuit alleging that the pharmacy giant illegally dispensed millions of prescriptions without a legitimate medical basis. According to the suit, the company pressured its pharmacists to fill prescriptions quickly, resulting in the improper dispensing of opioids and other medications. The pharmacy chain said the lawsuit was an “attempt to enforce arbitrary ‘rules’ that do not appear in any law or regulation.”

Shares in the online travel platform operator Booking Holdings (BKNG) fell 4.9 per cent. Tuesday’s decline reversed gains from the stock last week after analysts at Morgan Stanley raised their price target on Booking stock, citing the potential for the company’s generative AI tool to drive outperformance. However, competition is intense in the travel booking industry and the company’s reliance on lead generation for bookings remains a problem.

The First Solar (FSLR) share fell 4.9 per cent. Although BMO Capital Markets reiterated its “outperform” rating on First Solar stock, analysts pointed to several challenges, including issues related to the solar equipment market in India, which could also weigh on the company’s sales in Malaysia and Vietnam. In addition to the international concerns, the outlook for renewable energy in the United States under the new presidential administration adds a layer of uncertainty.