Back from the Brink

Back from the Brink 

Investors poured into US stocks, driving a 3% surge in S&P 500 futures, after the US and China agreed to sharply reduce tariffs for 90 days. US tariffs on Chinese goods will drop from 145% to 30%, while China will cut its 125% tariff on US imports to 10%. The deal, starting May 14, follows talks in Switzerland and includes a US push for China to act on the fentanyl trade, the BBC reported. 

Pharma Giants Fall on Trump Drug Plan

Elsewhere, pharma stocks slumped globally after US President Donald Trump pledged to slash US drug prices by up to 80% via executive order. Major names like Pfizer [PFE] and Eli Lilly [LLY] dropped over 2%, Seeking Alpha detailed, while Novo Nordisk [NVO] and Roche [RHHBY] each fell more than 4%. The move sparked a global selloff in drugmakers, overshadowing gains related to the tariff agreement.  

Glencore to Take Stake in Cobalt IPO

In a rare boost for London’s IPO market, Cobalt Holdings is set to list on London’s main market this June, aiming to raise $230m in an IPO backed by Glencore [GLNCY] and Anchorage Capital, who together will take a 20.5% stake. The company is betting on cobalt demand driven by the electric vehicle boom; according to the Financial Times, it is modelled on Yellow Cake [YLLXF], which buys and holds uranium. 

Satellite Stocks’ Mixed Q1s 

Telesat [TSAT] highlighted strategic progress in its low Earth orbit satellite program and debt reduction, but continues to battle falling revenue and higher costs. Meanwhile, EchoStar [SATS] missed expectations, with a -$0.71 EPS and $3.87bn revenue. Read OPTO’s recent deep dive into the two stocks, alongside other satellite firms challenging Starlink’s supremacy.

AI Start-up Sets Sights on Saudi

Backed by Amazon [AMZN] and Meta [META], among others, Scale AI is expanding into the Middle East, with plans to open offices in Saudi Arabia and the UAE. The data-labeling start-up, which is valued at $13.8bn, aims to tap into one of the fastest-growing regions for artificial intelligence (AI) adoption, Bloomberg outlined: Gulf states are aggressively investing in AI infrastructure to diversify away from oil.

QCOM Climbs on Takeover Deadline Extension

Qualcomm [QCOM] now has until May 27 to decide on a takeover bid for UK-based chip IP firm Alphawave [AWEVF], after the UK’s Panel on Takeovers and Mergers extended the deadline. Alphawave shares rose 8% in London, while Qualcomm gained 4% in the US, Seeking Alpha reported. The deadline could be extended further, and there is no guarantee that an offer will be made.

OKLO Stock: What to Expect from Q1 Earnings

Santa Clara, California-based nuclear firm Oklo [OKLO] aims to design, build, and operate small modular reactors — facilities it calls “powerhouses” — to provide clients with clean energy. With OpenAI CEO Sam Altman resigning as chairman of the its board, OPTO explores the company’s prospects ahead of the Q1 2025 earnings release on May 13, as well as the bull and bear cases for OKLO stock.