Key Takeaways
- Nasdaq 100 gained 1.6% as investors aggressively bought the dip in semiconductor stocks like Nvidia and Micron following a sharp weekly selloff.
- AstraZeneca’s oral obesity pill, Elecoglipron, demonstrated a 10.5% body weight loss in Phase 2 trials, clearing the path for an extensive Phase 3 program.
- The MSCI Emerging Markets Index plunged 3.6%, marking its worst single-session performance since March due to a pause in the AI rally and hawkish U.S. interest rate expectations.
- Gilead and Merck reported successful Phase 3 results for their once-weekly oral HIV treatment, meeting primary efficacy endpoints at Week 48.
- Oil prices pared earlier gains on signs of de-escalation between Iran and Israel, supporting a bullish outlook for the S&P 500 from major Wall Street strategists.
Chipmakers lead a significant Wall Street recovery as investors returned to artificial intelligence-related stocks following last week’s volatility. The tech-heavy Nasdaq 100 climbed 1.6% on Monday, bolstered by strong performances from Nvidia (NVDA) and Micron (MU), which both saw shares jump as much as 5.6% during the session. Market sentiment shifted toward "buying the dip" as traders bet on the long-term resilience of the AI "supercycle" despite recent profit-taking.
In the healthcare sector, AstraZeneca (AZN) announced breakthrough results for its oral obesity candidate, Elecoglipron. The small-molecule GLP-1 receptor agonist delivered a 10.5% reduction in body weight at 26 weeks in the VISTA trial, with weight loss reaching 11.8% by week 36. The drug's ability to provide meaningful weight loss without food or fluid restrictions has prompted the company to advance the treatment into a global Phase 3 program.
Simultaneously, Gilead Sciences (GILD) and Merck (MRK) reported that their investigational once-weekly oral HIV regimen, islatravir/lenacapavir, met its primary efficacy endpoints. Data from the ISLEND-1 and ISLEND-2 Phase 3 trials showed the treatment was statistically non-inferior to daily regimens, including Biktarvy, at the 48-week mark. This combination has the potential to become the first approved long-acting oral treatment for virologically suppressed adults living with HIV.
While U.S. markets rebounded, the MSCI Emerging Markets Index closed down 3.6%, its sharpest decline in three months. The selloff was primarily driven by a pause in the AI-led rally across Asian tech hubs, with South Korea’s Kospi slumping 8.3% and Taiwan’s benchmark falling 3.5%. Stronger-than-expected U.S. jobs data further pressured emerging assets by fueling expectations that the Federal Reserve may maintain elevated interest rates to combat inflation.
Global macro sentiment improved late in the day as oil prices pared earlier gains following signals of potential de-escalation between Iran and Israel. Despite the geopolitical friction, strategists at Citigroup (C) and Morgan Stanley (MS) maintained bullish outlooks for the S&P 500, with Citigroup raising its year-end target to 8,100. Analysts cited robust corporate earnings and resilient economic fundamentals as the primary drivers for continued equity growth through the remainder of 2026.
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.