Epam Systems Shares Plunge Amid Demand Challenges

Major U.S. equities indexes advanced as data showed that initial unemployment claims rose to their highest level since August. The latest signal of cooling in the labor market could nudge the Federal Reserve as policymakers consider how soon it may be appropriate to lower interest rates.

The S&P 500 added 0.5% in Thursday’s session. The Dow was up 0.9%, marking the seventh consecutive positive trading day for the blue-chip index. The tech-heavy Nasdaq gained 0.3%.

Shares of Equinix (EQIX) led the S&P 500 higher with gains of 11.5% following the data center operator’s strong quarterly earnings report. The real estate investment trust (REIT) specializing digital infrastructure posted better-than-expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted funds from operations (AFFO) for the period, boosted by robust demand for artificial intelligence (AI) products.

NRG Energy (NRG) shares jumped 7.8% on the day after the utility’s quarterly results showed that free cash flow before growth declined versus a year ago. Thursday’s rebound came as analysts at BMO Capital raised their price target on NRG stock, reflecting a revaluation based on the performance of peers in the market.

Steris (STE), which provides sterilization products and services for health care providers, announced a targeted restructuring of its business, and its shares added 7.6%. The transformation will concentrate on the company’s surgical business in Europe, including product rationalizations and facility consolidations. The planned maneuvers follow last month’s announcement that Steris intends to divest its dental business.

Epam Systems (EPAM) shares endured the steepest decline among S&P 500 stocks, plummeting 27% after the software developer provided lower-than-expected sales and profit guidance for the current quarter and full year. Although first-quarter profits topped estimates, the company suggested its muted outlook reflected unanticipated market conditions and a tough demand environment.

Shares of Corpay (CPAY) slid 7% after the corporate payments firm said it would acquire Paymerang, a provider of accounts payable automation solutions. Previously known as Fleetcor Technologies until its rebranding in March, Corpay suggested the acquisition could help enhance its position in the education, health care, hospitality, and manufacturing sectors.

Airbnb (ABNB) shares fell 6.9% after the short-term rental platform’s current-quarter outlook came in below consensus expectations. Although the company beat sales, profit, and gross booking estimates for the quarter that ended in March, Airbnb noted that the timing of Easter, the additional leap-year day in February, and foreign exchange fluctuations could weigh on subsequent results.