Public Markets 8-Hour Briefing
×Market Turmoil
US stocks sank Monday as fresh concerns about artificial intelligence's impact hit financial and software companies, while President Trump's new across-the-board levy added uncertainty. Hedge funds sold global equities at the fastest pace since the April tariff meltdown, according to Goldman Sachs traders. The S&P 500 futures declined 0.4% as uncertainty over American trade policy clouded sentiment ahead of Trump's State of the Union address.
Tariff Impact
Retailers including Gap, Aritzia and Urban Outfitters should see margins expand after the Supreme Court ruling set the US global tariff at 15% versus an average 20% for the sector. However, Raymond James downgraded Vertical Aerospace on funding concerns, while Bof A cut Dell's target on rising memory costs. JPMorgan warned that Treasury is closely monitoring the private credit market as Trump's trade war continues.
AI Disruption Fears
Delivery, payments, and software stocks slid sharply after Citrini Research published a report outlining potential risks that artificial intelligence could pose to various segments. Software and private capital shares were hit with a fresh wave of selling as fears over AI disruption mounted. Nvidia stock hit a bizarre valuation level amid the broader tech selloff, while Oracle fell amid concerns about its Stargate project.
Corporate Moves
Abbott Laboratories is looking to raise about $20 billion from a bond sale to help fund its acquisition of cancer-screening company Exact Sciences Corp. Exchange Income Corp. is preparing to sell as much as C$500 million of bonds in its first note sale. Thames Water creditors are seeking approval from ratings agencies for a crucial rescue plan to prevent insolvency.
Energy & Commodities
US natural gas futures rose slightly as traders factored in a blizzard slamming the Northeast, pushing up demand for heating and power-plant fuel. Soybeans reversed earlier losses to turn higher as traders tried to unpack how changes to Trump's tariff regime will impact US crop shipments. Russia's flagship crude is selling at the deepest discount in the international marketplace in almost three years as Western sanctions deter trade with Moscow.
Healthcare Developments
Novo Nordisk's next-generation obesity shot delivered less weight loss than Eli Lilly's rival blockbuster, dealing another blow to the Danish company's attempts to regain ground in the weight-loss market. Generate Biomedicines is seeking to raise as much as $425 million in an IPO, using artificial intelligence in drug development. Merck split operations to separate oncology from non-cancer drugs in preparation for the 2028 US patent expiry of its blockbuster cancer treatment Keytruda.
International Markets
Lebanon's commercial banks lack the liquidity required to repay depositors under a government proposal aimed at plugging an $80 billion gap in the financial system. Bangladesh plans to renegotiate its power purchase deal with India's Adani Power Ltd. to seek lower prices. Colombia's peso is defying economic and political woes after a surprisingly hawkish pivot in monetary policy reinforced the dominant carry trade.
Safe Haven Flows
Swiss franc could surge as much as 17% to the dollar amid growing confidence in the currency's haven status in the face of US policy uncertainty, according to Morgan Stanley strategists. Treasuries rose as President Trump vowed to press ahead with his trade war after the Supreme Court struck down his tariffs, casting new uncertainty over global markets.