Key Takeaways
- Eli Lilly (LLY) announced that starting July 1, 2026, Medicare beneficiaries will have access to its new oral obesity drug, Foundayo, with a capped monthly copay of $50 through the Medicare GLP-1 Bridge.
- Geopolitical tensions eased as Pakistan’s Army Chief, Field Marshal Asim Munir, arrived in Tehran to mediate between the U.S. and Iran, with reports suggesting a 14-point memorandum of understanding for a ceasefire is nearing completion.
- Tech stocks surged pre-market, led by Workday (WDAY), which jumped over 7.5% on an earnings beat and raised margin guidance, and AMD (AMD), up 2% after announcing a $10 billion investment in Taiwan to address a global CPU shortage.
- Federal Reserve leadership is poised for a major shift as White House adviser Kevin Hassett signaled that Kevin Warsh will soon take "complete control" of interest rate policy, urging Jerome Powell to step aside following Warsh's Senate confirmation.
- Canadian economic data surprised to the upside, with Retail Sales growing 0.9% in March and the Industrial Product Price Index (IPPI) rising 2.0% in April, both significantly beating analyst estimates.
Healthcare and Corporate Developments
Eli Lilly (LLY) has reached a landmark agreement to expand access to its weight-loss treatments. Starting July 1, 2026, eligible Medicare beneficiaries can access Foundayo (orforglipron) for a $50 monthly copay. This move, facilitated by the Medicare GLP-1 Bridge program, aims to provide a more affordable oral alternative to injectable therapies like Zepbound and Wegovy.
In the technology sector, AMD (AMD) CEO Lisa Su announced a strategic $10 billion investment in Taiwan. The capital will be used to expand production capacity for advanced Venice CPUs and AI chips as stronger-than-expected demand continues to tighten the global market. Analysts noted that the move is a direct challenge to Nvidia’s dominance in the AI infrastructure space.
Workday (WDAY) shares rallied 7.5% in pre-market trading after the company reported Q1 adjusted EPS of $2.66, beating the $2.51 estimate. Management also upgraded its full-year operating margin forecast to 30.5%, citing the successful integration of AI-driven automation across its enterprise platform, which has now been deployed by over 4,000 clients.
Geopolitical Mediation and NATO Response
Diplomatic efforts in the Middle East reached a critical juncture as Pakistan’s Army Chief Asim Munir traveled to Tehran. Mediation efforts appear to be moving in a "considerably positive direction," with reports indicating that Saudi Arabia, the UAE, and Qatar are collectively advising the Trump administration against reinitiating a full-scale war with Iran.
NATO Secretary-General Mark Rutte underscored the alliance's commitment to Article 5, describing the pledge as "steadfast." Rutte warned that any attack on the freedom of navigation in the Strait of Hormuz would result in a "catastrophic" response. The rhetoric comes as NATO plans to boost defense production capacity to ensure shipping lanes remain open amid Iranian threats.
Economic Data and Central Bank Shifts
Canada reported robust economic figures for the spring. Retail Sales for March rose 0.9%, outperforming the 0.6% forecast, while Retail Sales Ex-Autos surged 1.4%. Additionally, the Industrial Product Price Index (IPPI) for April climbed 2.0%, well above the 1.3% estimate, suggesting persistent inflationary pressure at the producer level.
In the U.S., White House adviser Kevin Hassett intensified calls for a transition at the Federal Reserve. Hassett praised Kevin Warsh, who was recently confirmed by the Senate, stating that Warsh will bring the Fed "back to its fundamentals" and restore independence. Hassett also warned that an oil shock could soon influence core inflation, urging central banks to remain focused on rising energy costs.
International Market Briefs
- Mexico: The economy showed resilience with Q1 GDP growing 0.2% and Economic Activity (IGAE) rising 1.4% year-over-year in March, both beating expectations.
- China: Battery giant CATL is reportedly planning a major investment in the AI startup DeepSeek as part of a 50 billion yuan funding round, signaling a deeper push into AI infrastructure.
- Germany: Business confidence showed a surprise improvement in May according to the Ifo report, though editors cautioned that the recovery remains in its early stages.
- Sweden: Secretary of State Marco Rubio signed a new agreement with Swedish officials for technology collaboration, focusing on secure telecommunications and AI development.
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.