NextEra Energy and Dominion Energy are reportedly in discussions for a stock-based merger that could create a utility giant valued at approximately $400 billion, including debt. According to a Financial Times report cited by Reuters, the deal could be announced as early as next week, though the situation remains fluid and subject to change. Both companies declined to comment on the report.
The potential merger comes at a time when U.S. electricity demand is surging, driven by the rapid expansion of AI data centers. U.S. power consumption hit a record for the second consecutive year in 2025 and is expected to rise further over the next two years. A combined NextEra-Dominion entity would be better positioned to finance new power plants, grid upgrades, and long-term supply contracts, addressing the growing need for reliable electricity.
Nvidia is set to report earnings on Wednesday, drawing intense focus from traders following a 36% rally since its March low. The Philadelphia semiconductor index has surged over 60% in the same period. The chipmaker's results will provide a key test for the AI-driven market rally, with investors watching for updates on demand, supply chain constraints, and exposure to China. The U.S. has approved about 10 Chinese firms, including Alibaba, Tencent, ByteDance, and JD.com, to purchase Nvidia's H200 AI chips, though no orders have shipped yet. Nvidia previously held about 95% of China's high-end chip market before export restrictions were imposed, and China accounted for roughly 13% of its sales.
Retail earnings will also take center stage next week, with Walmart, Home Depot, Target, and TJX reporting results. Consumer spending, which makes up over two-thirds of the U.S. economy, will be closely scrutinized for signs of resilience amid persistent inflation and higher interest rates. "How resilient is the consumer?" asked Yung-Yu Ma of PNC Asset Management.
U.S. stocks fell more than 1% on Friday, with the Dow, S&P 500, and Nasdaq all declining sharply as rising oil prices and Treasury yields pressured the AI stock rally. Despite the pullback, the S&P 500 posted its seventh consecutive weekly gain. "The market had gotten way ahead of itself," said Kenny Polcari of SlateStone Wealth.
Federal Reserve rate expectations remain subdued, with Kalshi data showing a 97% implied probability that the Fed will hold rates steady in June. Polymarket puts the odds of no change at around 98%. For 2026, Polymarket prices a 69% chance of no rate cuts, based on implied probabilities.
In other corporate news, Berkshire Hathaway disclosed a $2.65 billion stake in Delta Air Lines, added to its Macy's position, and bought more Alphabet shares. Delta shares rose in late trading, though higher fuel costs could weigh on airlines. Boeing and GE Aerospace are on the watchlist after China announced plans to buy 200 Boeing jets, with officials suggesting the deal could eventually reach 750 planes. Boeing described the commitment as preliminary, and the order is not yet on its backlog.
Dexcom will appoint two independent directors and restructure a board committee following discussions with Elliott Investment Management. Marc Steinberg of Elliott said Dexcom has a "clear path" to margin expansion. Figma raised its revenue outlook for the year after first-quarter sales jumped 46%.
Microsoft, Alphabet, and Amazon may see activity following portfolio moves and legal developments. Bill Ackman's Pershing Square added Microsoft and sold Alphabet, though Ackman called the sell-off "not a bet against the company." Amazon faces a lawsuit from buyers seeking refunds for tariff-related surcharges after the tariffs were found unlawful. Similar suits have been filed against Costco, Nike, and FedEx.
