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AI Memory Stocks Stage a Sharp Rebound
After several consecutive sessions of steep declines, memory-exposed stocks — including Micron, SanDisk, and Western Digital — staged a notable rally on Wednesday. Micron led the charge with a nearly 9% gain in a single session, though even with that bounce, the stock remained roughly 22% below its recent high.
The prior selling wave was driven by fears that a new AI algorithm developed by Alphabet could dramatically reduce memory demand across data centers, compounding broader macroeconomic anxieties that have weighed heavily on the entire AI trade. Wednesday's rebound suggests that some investors viewed the selloff as overdone, at least in the short term, though the fundamental question of how AI architectural shifts will affect memory demand remains very much unresolved.
Eli Lilly Strengthens Its Obesity Market Position
Eli Lilly was another standout performer, with shares rising nearly 4% after the FDA approved its new oral weight-loss drug, Fondo. The approval is significant because it marks Lilly's second FDA-approved obesity treatment and represents a strategic expansion beyond injectables into an oral format — a potentially more accessible delivery method for patients.
Lilly has announced plans to launch Fondo in more than 40 countries following the US rollout, reinforcing its competitive position in the rapidly growing obesity treatment market.
SpaceX Files Confidentially for a Historic IPO
In one of the most closely watched developments of the day, SpaceX has confidentially filed for an initial public offering with the US Securities and Exchange Commission. If it proceeds, the listing could seek a valuation exceeding $1.7 trillion, which would make it the largest IPO in history.
The filing brings Elon Musk's rocket and satellite company one step closer to the public markets, a move that has been anticipated for years given the company's dominant position in commercial launch services and its rapidly expanding Starlink satellite internet business.
Economic Data Paints a Mixed but Resilient Picture
Wednesday's economic releases offered a generally constructive view of the US economy, though with important caveats.
Jobs data: ADP's private sector hiring report came in better than expected at 62,000 new jobs. However, the gains were concentrated in education, healthcare, and construction, suggesting the labor market remains somewhat lopsided rather than broadly improving.
Retail sales: Consumer spending increased by the most in seven months, with strength in health stores, clothing, and auto sales. The control group — a measure economists watch closely because it feeds directly into GDP calculations — also picked up. The important caveat is that this data covered February, before the onset of the conflict with Iran, so it reflects consumer behavior in a pre-war environment.
Manufacturing: The ISM manufacturing index ticked higher, but it carried a warning. The prices-paid component surged to its highest level since 2022, with the index posting its steepest multi-month increase in nearly a decade. Rising input costs could reignite inflation concerns and complicate the Federal Reserve's path forward.
Geopolitical Uncertainty Looms Over Markets
Heading into the Easter weekend, geopolitical risk remains front and center. Over recent Fridays, markets have seen significant de-risking as investors reduce exposure ahead of periods when trading is closed and developments in the Iran conflict could unfold without the ability to react.
A presidential address scheduled for the evening was expected to set the tone. While claims of a ceasefire request from Iran had surfaced, conflicting headlines from the US administration, Iran, and Israel left the situation deeply uncertain. Asian markets, open during the address, would serve as the first real-time gauge of investor sentiment heading into the long weekend.
Looking Ahead
Key data releases on the immediate horizon include initial jobless claims and international trade figures, with the all-important non-farm payrolls report due Friday morning — even though US equity markets will be closed for the holiday. Together, these reports will offer a fuller picture of whether the labor market's apparent resilience can hold up amid rising geopolitical tensions and persistent inflationary pressures in the manufacturing sector.