Key Takeaways
- Equity index futures declined Tuesday morning as crude oil prices neared the $100 per barrel threshold, intensifying rate hike speculation
- Intel topped premarket S&P 500 gainers alongside AMD and Marvell as artificial intelligence chip momentum continued
- Novartis plummeted 13% following the failure of its del-desiran muscle-wasting treatment trial, its third setback in a week
- Roivant Sciences soared 20% on encouraging Phase 2 data for its pulmonary hypertension drug candidate
- ASML shares climbed 2% after major chipmakers committed to adopting its next-generation lithography equipment
U.S. stock index futures traded in negative territory Tuesday as Brent crude maintained levels above $98 per barrel. The surge in energy costs has amplified market expectations for an additional Federal Reserve interest rate increase at its upcoming policy meeting.
Bucking the downward market trend, semiconductor stocks focused on artificial intelligence applications demonstrated strength during premarket hours. Intel emerged as the S&P 500’s strongest performer before market open, gaining 3.6%. Advanced Micro Devices and Marvell followed suit, joined by gains in Micron and Sandisk shares.
Semiconductor Sector Finds Strength in AI Narrative
ASML contributed to the positive chip sector sentiment, advancing 2% following confirmation that Samsung, Taiwan Semiconductor Manufacturing, and Intel will proceed with implementing its High-NA extreme ultraviolet lithography systems.
According to ASML’s Chief Technology Officer, an anticipated transition from 6-inch to 12-inch photomasks has the potential to enhance machine throughput by as much as 40%. TSMC and ASML have established a timeline for a 12-inch mask test facility by 2031, with full-scale commercial manufacturing expected by 2033.
Roivant Sciences claimed the title of Tuesday’s top performer, skyrocketing 20%. The company’s Pulmovant subsidiary announced favorable Phase 2 data for mosliciguat, an investigational therapy for pulmonary hypertension associated with interstitial lung disease.
The experimental treatment achieved its primary efficacy measure, demonstrating approximately 56% reduction in pulmonary vascular resistance versus placebo. Additional benefits included a roughly 35-meter improvement in six-minute walk distance and a 53% decrease in a critical cardiac stress biomarker.
Biotech Stocks Tumble Following Novartis Disappointment
Novartis shares plunged 13% after announcing that its late-stage clinical study for del-desiran, a muscle-wasting disease candidate, failed to achieve its primary efficacy goal. This marked the pharmaceutical giant’s third consecutive trial disappointment within a seven-day period.
The unsuccessful outcome triggered widespread selling across biotechnology companies. Dyne Therapeutics collapsed 30%, Sarepta Therapeutics retreated 11%, and NewAmsterdam Pharma slid 9%.
The Novartis news also pressured Amgen, which declined nearly 5%. Amgen is advancing its own cardiovascular therapy olpasiran, and market participants responded negatively to concerns about similar trial risks.
Novartis’s Chief Medical Officer characterized the setbacks as inherent to scientific innovation. The company maintained its projected 5% to 6% annual sales expansion target through 2030.
Zim Integrated Shipping Services advanced 6% after Hapag-Lloyd and private equity partner FIMI announced plans to modify their proposed $4.2 billion takeover agreement following discussions with Israeli government representatives.
The transaction has encountered resistance in Israel from labor groups, military officials, and political leaders citing national security concerns. Hapag-Lloyd acknowledged it is collaborating with Israeli authorities to implement structural modifications to address these issues.
Fuel-cell manufacturer Bloom Energy rose 5.9%, data storage company Everpure increased 3%, and biotechnology firm Illumina ticked up 0.9%. The trio will join the S&P 500 index on September 21.
Builders FirstSource, Molson Coors Beverage, and Trade Desk face removal from the S&P 500, with all three stocks declining Tuesday.
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