Markets
Luke Kawa

US stocks sink on momentum unwind, mounting growth fears

It was a risk-off day, with stocks slumping while bonds rallied briskly amid data pointing to an unexpected cooling in the US services sector in February and deteriorating consumer confidence.

The S&P 500 tumbled all the way down to its 50-day moving average, closing 1.7% lower.

The Nasdaq 100 declined 2.1% while the Russell 2000 gave back 2.9%.

There was a decidedly defensive tenor to the S&P 500 sector ETF price action: consumer staples were the best-performing sector, up more than 1%, utilities were flat, and all other sectors declined. Tech, consumer discretionary, industrials, and energy were all off more than 2%.

The brisk retreat in the benchmark index over the past two sessions has the hallmarks of a momentum unwind catalyzed by Walmart’s lackluster outlook: the iShares MSCI USA Momentum Factor ETF fell nearly twice as much as the S&P 500 in the final couple trading days of the week. Walmart, for its part, extended yesterday’s losses to close below its 50-day moving average for the first time since August.

Flows related to this month’s options expiry may have played a role in the magnitude of the downdraft.

Nvidia, for instance, had a significant amount of open interest in calls expiring on Friday with a strike price of $140. While the stock opened around that level, the value of those contracts plummeted as shares dipped lower, likely exacerbating the selling pressure on the stock.

A few bright spots on the tape: Celsius spiked after announcing a deal to buy Alani Nu, which is popular among Gen Z. It’s a day ending in y, so Alibaba rallied strongly, this time on reports that GameStop CEO Ryan Cohen upped his stake in the Chinese e-commerce and cloud giant to about $1 billion.

Hims & Hers cratered after the FDA said weight-loss drugs Ozempic and Wegovy are no longer in a shortage, which curbs its ability to sell copycat editions. The news was a boon for Novo Nordisk, however.

Luxury reseller The RealReal also plummeted after issuing full-year forecasts for revenues and adjusted EBITDA that came in light relative to analysts’ expectations.

Probes also weighed on certain companies’ shares to end the week. UnitedHealth sold off on a report that the DOJ is investigating its Medicare billing practices. Meanwhile, CrowdStrike is reportedly under scrutiny by both the DOJ and SEC.

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Jensen Huang GTC 2026 San Jose

Nvidia keeps giving Wall Street everything it wants — without getting rewarded

Yet another case of good financial news from Nvidia failing to generate an enduring positive reaction.

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Matt Phillips

Oklo surges after receiving approval for next phase in the construction of its first reactor

Revenue-free retail favorite Oklo is up in early trading after announcing regulatory updates on its first product, a reactor it calls Aurora, which it has started building at the US Energy Department’s primary nuclear energy research and development center, the Idaho National Laboratory.

Oklo announced that it signed an “other transaction agreement” (OTA) with the Department of Energy early Tuesday. (OTAs are typically used by the federal government to enter into research, prototyping, and production deals with private entities outside of the typical procurement processes.)

Oklo also announced that the DOE’s Idaho Operations Office also signed off on a preliminary safety design review for the reactor, which is expected to be completed sometime in late 2027 or 2028. The company broke ground on the project in September.

Separately, Oklo also announced that the Nuclear Regulatory Commission issued a materials license enabling an Oklo subsidiary to handle, process, and distribute isotopes.

“This is Oklo’s first NRC-issued license and supports the transition from design and planning to real-world execution and progress,” the company said.

Given the close involvement of the federal government in the development of nuclear power plants, Oklo’s close ties to the Trump administration have been seen as an important advantage for the company — but have also drawn scrutiny and criticism.

Energy Secretary Chris Wright was formerly a board member at Oklo, before he was tapped to lead the Trump administration’s Department of Energy.

The department is playing a more prominent role in the nuclear regulatory process under an executive order designed to speed up approval of new nuclear energy technologies.

Separately, Oklo is due to report earnings after the close of trading on Tuesday.

Oklo Announces U.S. Department of Energy Approval for Nuclear Safety Design Agreement of Aurora Powerhouse at Idaho National Laboratory

Oklo announced that it signed an “other transaction agreement” (OTA) with the Department of Energy early Tuesday. (OTAs are typically used by the federal government to enter into research, prototyping, and production deals with private entities outside of the typical procurement processes.)

Oklo also announced that the DOE’s Idaho Operations Office also signed off on a preliminary safety design review for the reactor, which is expected to be completed sometime in late 2027 or 2028. The company broke ground on the project in September.

Separately, Oklo also announced that the Nuclear Regulatory Commission issued a materials license enabling an Oklo subsidiary to handle, process, and distribute isotopes.

“This is Oklo’s first NRC-issued license and supports the transition from design and planning to real-world execution and progress,” the company said.

Given the close involvement of the federal government in the development of nuclear power plants, Oklo’s close ties to the Trump administration have been seen as an important advantage for the company — but have also drawn scrutiny and criticism.

Energy Secretary Chris Wright was formerly a board member at Oklo, before he was tapped to lead the Trump administration’s Department of Energy.

The department is playing a more prominent role in the nuclear regulatory process under an executive order designed to speed up approval of new nuclear energy technologies.

Separately, Oklo is due to report earnings after the close of trading on Tuesday.

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markets
J. Edward Moreno

Eli Lilly receives its only sell rating as HSBC downgrades, citing smaller market for weight-loss drugs

Eli Lilly slipped in early trading after analysts at HSBC gave the pharmaceutical darling at the center of the obesity drug boom a rare downgrade.

Analysts at the bank cut their rating to “reduce” from “hold.” They cut their price target to $850 from $1,070. The stock closed at $989 on Monday.

“We think Lilly shares are priced to perfection, are uncomfortable with working capital trends, and think medium-term earnings trends are optimistic,” the analysts said.

According to Bloomberg, this is the only sell rating on Lilly among the 38 analysts who cover the stock.

The company has rallied more than 20% in the past year as its obesity drug sales continue to rise, far outpacing its top rival, Novo Nordisk.

But the space is getting increasingly crowded with new entrants and new products from Lilly and Novo, putting downward pricing pressure on their products. HSBC noted that the emergence of cash-pay channels for their drugs makes them subject to economic cycles and seasonality.

And while the introduction of oral options has expanded the market, HSBC analysts said they think “the compliance and persistence of these drugs might disappoint.”

“Whilst the momentum in the launch might be positive, we think oral drug launch expectations for Lilly are too high,” they said.

Max Knoblauch
3h
Delta, American, and rival airlines boost Q1 sales outlooks on strong demand; costs rise, too

Airlines are soaring as they say revenue is coming in higher than expected in the first quarter. That’s likely in part because they’re raising ticket prices to account for higher fuel costs.

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