U.S. stocks in focus as NextEra buys Dominion and earnings, Google I/O drive Tuesday trade

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US stocks: NextEra, earnings & Google

Highlights

NextEra announces a nearly $67 billion all-stock deal to acquire Dominion Energy, causing NextEra shares to fall 4.6% and Dominion to rise 9.4%.
Utilities underperform broad indexes as the S&P Utilities sector drops 6.5% in May and is down 8% from February highs, while the Nasdaq 100 is up 5.6%.
Alphabet shares hit a record high after climbing 16% in the past month, outpacing the Nasdaq 100's 8.7% gain ahead of Google's AI-focused I/O event.

Deal, earnings and product events set Tuesday agenda

As reported by CNBC, NextEra is set to buy Dominion Energy in an all-stock deal valued at nearly $67 billion, with the chief executives of both companies due to discuss the transaction on Tuesday morning. NextEra shares fell 4.6% in Monday trading, while Dominion Energy rose 9.4% on the deal news and reached a new high.

Home Depot is also scheduled to report on Tuesday morning, with its shares down 22% over the past three months and 30% below their September high. Amer Sports is due to report the same morning, and its stock has lost nearly 20% in the last three months and is down 22.5% from its February high.

Later in the day, investors are watching after-the-bell results from Cava and Toll Brothers. Cava has gained about 18% over the past three months despite trading 19% below its April 21 high, while Toll Brothers has fallen 20% in that period and is off 25% from its mid-February peak.

Sector performance and market implications

The NextEra-Dominion transaction lands as utilities underperform broader growth benchmarks. The S&P Utilities sector is down 8% from its February high and has fallen 6.5% in May, while the Nasdaq 100 is up 5.6% over the same period.

Even so, the utilities index is still up 2.5% in 2026, compared with a gain of nearly 15% for the Nasdaq 100 year to date. That relative gap leaves investors weighing whether large-scale utility consolidation can revive interest in the sector.

Alphabet is also in focus as Google I/O opens Tuesday in Mountain View, California, where markets expect an artificial intelligence update. Alphabet shares have surged nearly 140% over the past year, hit a new high on Monday, and have climbed 16% in the past month, versus an 8.7% gain for the Nasdaq 100.

Our earlier article on NextEra Energy’s proposed all-stock acquisition of Dominion Energy outlined how the deal is being positioned as a public-interest proposal, emphasizing customer bill impacts, jobs, and maintaining local operations to help win regulatory approval. We also noted that, if cleared, the transaction would make NextEra the world’s largest listed utility and strengthen its footing in a power market where electricity demand is rising alongside the AI boom.

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