Stock Movers Pharma Stocks Sink; Gold Stalls; Risk-On Drives Tech
May 12, 2025
Pharmaceutical stocks took a hit as the President aims to lower U.S. prescription drug costs, creating waves in the market. Gold also dropped, reflecting a shift towards equities amid easing trade tensions with China. Meanwhile, tech stocks, especially major chipmakers, are on the rise, with Apple and others benefiting from the positive trade news. As investor sentiment shifts, the Nasdaq 100 futures move closer to a bull market, highlighting a significant change in market dynamics.
AI Snips
Chapters
Transcript
Episode notes
Pharma Stocks and Gold Decline
- Pharma stocks like AbbVie, Eli Lilly, and Gilead Sciences are down due to possible US executive orders on drug pricing.
- Newmont, a gold mining company, is also down as gold prices fall with the market's risk-on sentiment.
China Exposure Drives Tech Rally
- Stocks with significant China exposure, especially semiconductors like Texas Instruments and Broadcom, surged due to easing US-China tensions.
- Major tech companies such as Apple, Tesla, and Amazon saw notable rallies fueled by trade news and supply chain considerations.
Apple Stock Defies Price Rise Worries
- Despite reports Apple might raise iPhone prices, the stock continues to rally strongly on positive China trade developments.
- This shows market optimism outweighs concerns over potential price increases for Apple products.