U.S. Stocks Decline Midway, Nasdaq Drops Over 350 Points
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy AEP?
Source: Benzinga
- Market Performance: U.S. stocks traded lower midway through Thursday, with the Nasdaq Composite falling over 350 points, and the S&P 500 dropping 1.18% to 6,859.69, indicating a weakening market sentiment amid growing investor concerns about the economic outlook.
- Sector Dynamics: Utility stocks rose by 2.4%, while information technology stocks fell by 1.5%, reflecting a market preference for defensive sectors as investors seek stable returns in light of economic uncertainty.
- Stock Highlights: American Electric Power Company, Inc. (NASDAQ:AEP) shares gained around 5% after reporting adjusted earnings of $1.19 per share, down from $1.24 a year ago but exceeding the Street estimate of $1.15, demonstrating the company's resilience in challenging conditions.
- Economic Data: U.S. initial jobless claims fell by 5,000 to 227,000, although slightly above market estimates of 222,000, indicating labor market resilience that could positively impact economic recovery.
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Analyst Views on AEP
Wall Street analysts forecast AEP stock price to rise
9 Analyst Rating
5 Buy
3 Hold
1 Sell
Moderate Buy
Current: 127.270
Low
110.00
Averages
127.78
High
140.00
Current: 127.270
Low
110.00
Averages
127.78
High
140.00
About AEP
American Electric Power Company, Inc. is an electric public utility holding company. Its electric utility operating companies provide generation, transmission and distribution services to more than five million retail customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Its segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco and Generation & Marketing. The Vertically Integrated Utilities is engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. The Transmission and Distribution Utilities consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco is engaged in development, construction and operation of transmission facilities. The Generation & Marketing segment conducts Marketing, risk management and retail activities.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Significant Backlog Growth: Bloom Energy's backlog has surged to $20 billion, increasing by $6 billion in just the fourth quarter of 2025, reflecting strong demand and market confidence in the rapidly growing energy sector.
- Profitability Milestone: The company reported profitability in its latest earnings report and expects revenue to exceed $3 billion in 2026, marking a significant advancement in its financial health and sustainable growth trajectory.
- Market Share Expansion: Bloom Energy is partnering with Brookfield Asset Management to power AI infrastructure, which is expected to further expand its market share, particularly in off-grid electricity needs for data centers and hyperscalers.
- Clear Technological Advantage: Specializing in solid oxide fuel cell technology, Bloom Energy can install systems quickly to address the U.S. power grid's projected 100 gigawatt shortfall, showcasing its competitive edge in the energy transition.
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- Market Capital Surge: Bloom Energy's market cap is nearing $40 billion, with its stock price soaring 465% since last Valentine's Day, reflecting strong performance in the energy market and heightened investor confidence.
- Rising Power Demand: The U.S. Department of Energy forecasts a power grid deficit of over 100 GW in the next five years, and Bloom Energy's solid oxide fuel cell technology allows for rapid installations, effectively addressing this demand and enhancing its competitive edge.
- Sustained Profitability: Bloom has achieved record revenue for four consecutive quarters and reported profitability in its latest earnings, with projected revenue exceeding $3 billion in 2026 and a backlog of $20 billion, indicating robust business growth potential.
- Strategic Partnerships: Bloom has formed partnerships with Brookfield Asset Management and Oracle, aiming to increase its generation capacity from 1 GW to 2 GW by the end of 2026, further solidifying its position in the rapidly growing AI infrastructure power market.
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- Project Approval: PJM Interconnection has approved a major electric transmission project developed by Transource Energy and FirstEnergy Transmission to meet the rising electricity demand in the fast-growing Columbus region, which is expected to boost local economic growth.
- Infrastructure Investment: The project will include approximately 300 miles of new 765-kilovolt power lines and upgrades to several substations, significantly enhancing service reliability; a single 765-kV line can power two million homes while reducing land use and minimizing environmental impact.
- Strategic Collaboration: Transource and FirstEnergy are collaborating through the newly formed Grid Growth Ventures, leveraging their combined expertise and resources to deliver comprehensive and cost-effective solutions to meet emerging demands from manufacturing facilities, data centers, and electric vehicles.
- Future Development Commitment: AEP plans to invest $72 billion from 2026 to 2030 to enhance services and support the growing energy needs of communities, further solidifying its leadership position in the electric transmission sector.
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- Project Approval: PJM Interconnection approved a major electric transmission project on February 12, developed jointly by FirstEnergy Transmission and Transource Energy, aimed at meeting the growing electricity demand in the Columbus region and supporting economic growth.
- Infrastructure Upgrade: The project will include over 300 miles of new 765-kilovolt lines and upgrades to several substations, significantly enhancing service reliability and expected to provide enough power for two million homes in the region.
- Environmental Impact Reduction: By consolidating power in a single corridor, the 765-kilovolt lines will cut land use in half, thereby reducing impacts on the local environment while providing essential power support for emerging manufacturing facilities, data centers, and electric vehicles.
- Strategic Collaboration Benefits: The partnership between FirstEnergy and Transource leverages their respective expertise to deliver smarter solutions to meet regional power capacity needs, aligning with the Federal Energy Regulatory Commission's encouragement of efficient regional transmission development.
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- Project Approval: PJM Interconnection has approved a major electric transmission project developed jointly by Transource Energy and FirstEnergy Transmission, aimed at meeting the growing electricity demand in the Columbus region of Ohio, which is expected to significantly enhance the area's economic growth potential.
- Infrastructure Upgrades: The project will involve the construction of approximately 300 miles of new 765-kilovolt power lines and upgrades to several substations, which are anticipated to improve service reliability, attract new businesses, and support the expansion of energy-intensive industries.
- Environmental Impact Reduction: By consolidating power in a single corridor, the 765-kV lines will cut land use in half, thereby reducing impacts on the local environment, while one 765-kV line can power the equivalent of two million homes.
- Strategic Collaboration Benefits: The joint development by Transource and FirstEnergy leverages their respective strengths in response to the Federal Energy Regulatory Commission's encouragement of efficient regional transmission development, which is expected to provide robust energy infrastructure support for future business development and community prosperity.
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- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
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