Market Overview - The U.S. stock market experienced cautious trading and moderate volatility on March 25, 2026, as investors balanced anticipation of tech earnings with concerns over persistent "higher-for-longer" interest rates [1] - Major indexes closed in negative territory, with the Dow Jones Industrial Average (DJI) down approximately 201 points (0.51%), the S&P 500 (SPX) declining by 0.27%, and the Nasdaq Composite (IXIC) down 0.18% [2] Volatility and Investor Sentiment - Volatility remained elevated, with the CBOE Volatility Index (VIX) increasing, as investors hesitated to make bold bets ahead of significant earnings reports [3] Nvidia's Performance - Nvidia (NVDA) reported quarterly results that exceeded Wall Street expectations, leading to a surge in after-hours trading; the company announced a 10-for-1 stock split and a significant increase in its quarterly dividend [4] - Nvidia's strong performance positively impacted other AI-related companies, including Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN), although gains were mostly realized in after-hours trading [5] Retail Sector Analysis - Target (TGT) shares fell over 7% after reporting a decline in comparable sales and issuing a cautious outlook, citing a "challenging consumer environment" [6] - Conversely, TJX Companies (TJX) saw its stock price rise after beating earnings estimates and raising its full-year guidance, indicating a shift towards discount-oriented retail models [7] Federal Reserve Insights - The FOMC minutes revealed Federal Reserve officials' concerns about inflation, indicating a willingness to tighten policy further if inflation risks materialize, which pressured growth-oriented stocks [8] Other Notable Movers - Lululemon (LULU) dropped nearly 7% following the departure of its Chief Product Officer, while Moderna (MRNA) gained ground due to progress on a bird flu vaccine [9] Upcoming Market Events - Market participants are anticipating the release of weekly initial jobless claims and the preliminary reading of the U.S. Manufacturing PMI, which will be critical for assessing the labor market and potential rate cuts by the Federal Reserve [10]

Core Viewpoint - The biotech sector is experiencing a rebound in 2023, with expectations for continued recovery into 2026, despite initial pressures and a rough start to the year [1]. Group 1: Market Dynamics - Stocks of pharmaceutical companies that recently engaged in deals with the administration have traded higher, indicating a positive market response despite price reductions to align with global standards [2]. - The removal of uncertainty regarding drug pricing has allowed companies to adjust their business models accordingly, leading to potential revenue upside [3][4]. - The stabilization of negative earnings revisions after nearly three years suggests a potential upside for the biotech sector as it approaches 2026 [7]. Group 2: Regulatory Environment - Agreements signed with the Trump administration regarding drug pricing have provided clarity for companies, enabling them to better navigate their business models [8]. - There is ongoing uncertainty in the vaccine sector, particularly regarding regulatory frameworks, which may impact stock performance [8]. Group 3: Investment Opportunities - For large-cap stocks, Amgen and Regeneron are identified as having upside potential, while Biogen is seen as a laggard [9]. - The focus for small to mid-cap stocks includes innovation in cardiovascular disease, obesity treatments, and mergers and acquisitions (M&A) as key themes for the upcoming year [9]. - Cancer treatment is highlighted as a significant area of focus for future investments [10].

Despite pressure from the administration, a rough start to the year, biotech has seen a rebound this year. Our next guest is betting that that recovery will continue into 2026. So joining us now, Salivine Richtor.She is the lead US biotech analyst at Goldman Sachs Research. And Salivine, it's great to have you on the show. Welcome.>> Thank you for having me. What's interesting to me is that these names of these, you know, these stocks of these pharma companies that did inc this deal with the president just ...