Key Takeaways
- Cleveland Fed President Beth Hammack predicts inflation will finish 2026 at approximately 3%, missing the central bank's 2% target and suggesting a need for further rate hikes.
- BioNTech (BNTX) terminated its Phase 2 clinical trial of autogene cevumeran for colorectal cancer after an independent board found the treatment unlikely to meet efficacy goals.
- US markets opened mixed on Friday, with the Dow Jones rising 153.39 points (0.29%) while the Nasdaq slipped slightly as investors weighed hawkish Fed commentary against tech volatility.
- The US is tightening AI chip export controls, with new regulations aimed at further limiting China’s access to advanced semiconductor technology and smuggling networks.
- China purchased 182,000 metric tons of US soybeans for the 2026/2027 marketing year, providing a boost to the agricultural export sector.
Fed’s Hammack Signals Hawkish Stance on Inflation
Cleveland Federal Reserve President Beth Hammack delivered a series of hawkish remarks on Friday, stating that the U.S. economy currently remains "unrestricted" by interest rates. Hammack projected that inflation will end the year at approximately 3%, a figure that falls notably short of the Fed's long-term 2% objective. She emphasized that the period of ultra-low interest rates seen between 2008 and 2020 was likely an "abnormal" era rather than the current environment.
Hammack argued that it is "time for the Fed to act with rate hikes," warning that delaying further tightening could create economic pain in the future. She noted that the Fed's reputation relies on meeting its dual mandate of price stability and maximum employment. Despite her leaning toward higher rates, she maintained that she enters all federal meetings with an "open mind" and views interest rates as the central bank's simplest tool for public communication.
BioNTech Abandons Colorectal Cancer mRNA Trial
BioNTech (BNTX) announced the termination of its Phase 2 clinical trial evaluating autogene cevumeran (BNT122) as a monotherapy for colorectal cancer. The decision followed a recommendation from the Data Safety Monitoring Board (DSMB), which advised ending patient treatment and the trial itself. The board concluded that the study was unlikely to reach its primary efficacy endpoints, although no new safety concerns were reported.
The trial was assessing the individualized mRNA immunotherapy in patients with stage II or III colorectal cancer who were positive for circulating tumor DNA. While this specific monotherapy trial has ended, BioNTech (BNTX) confirmed that other studies involving autogene cevumeran, including combinations for pancreatic cancer, will continue as planned. The company stated it will conduct a full analysis of the data to inform future immunotherapy research for difficult-to-treat tumor types.
US Tightens AI Restrictions; Soybean Exports to China Rise
The US government is moving forward with new AI regulations designed to restrict China's access to advanced computing chips. These measures aim to close loopholes in existing export controls and address "sophisticated smuggling networks" that have reportedly moved restricted hardware through third-party countries. The move comes as Taiwanese prosecutors recently charged several individuals, including employees from Nvidia (NVDA) and Super Micro (SMCI), for allegedly smuggling high-end AI servers to the Chinese mainland.
In the agricultural sector, the USDA confirmed that private exporters sold 182,000 metric tons of soybeans to China for delivery in the 2026/2027 marketing year. This sale is part of a broader trend of renewed Chinese interest in US commodities, providing a critical demand floor for American farmers. Additional sales of soybean cake and meal were also reported to Germany and the Netherlands, totaling 200,000 metric tons.
Market Open: Dow Gains as Nasdaq Falters
Wall Street saw a bifurcated start to the trading session on Friday. The Dow Jones Industrial Average rose 153.39 points (0.29%) to 53,722.83 shortly after the opening bell. In contrast, the Nasdaq Composite fell 15.10 points (0.06%) to 26,526.25, reflecting slight pressure on the technology sector following the latest regulatory and Fed news. The S&P 500 remained relatively flat, edging up 6.30 points (0.08%) to 7,737.29.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.