📈 Lilly's $1.3B Gene-Editing Bet

Good morning.

⚡ The Fast Five → Trump Extends TikTok Deadline Again, Tesla Pauses Cybertruck, Model Production, Amazon: AI Cuts Corporate Jobs, OpenAI Considers Microsoft Antitrust Complaint, Hasbro Cuts Jobs Amid Tariffs

🔎 Market Trends → Indexes end lower as Israel-Iran fighting raises investor anxiety, US Futures Slip on Trump Tehran Warning

🚨 Start Your Day with Market Movers: Opening Bell LIVE on FinTech.tv from 9-10AM EST

And now…

⏱️ Your 5-minute briefing for Wednesday, June 18, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Wobble as Middle East Risks Return, but Fed Hopes Anchor Outlook

S&P 500 fell 0.8% to 5,982.7. The Nasdaq dropped 0.9%, and the Dow shed 0.7% as rising geopolitical tension pushed investors into risk-off mode.

The Big Picture:

Stocks pulled back Tuesday as the Israel-Iran conflict escalated, stoking fears of a broader energy shock. But beyond the headlines, investors are eyeing the Fed’s rate decision Wednesday—a more durable market mover than missiles.

Oil surged as markets priced in potential supply disruption through the Strait of Hormuz, a chokepoint for global crude. Still, expectations of a dovish Fed stance and eventual rate cuts remain firm, cushioning downside risk.

Treasury yields eased as capital sought safety. Retail and industrial data missed, but that may be just what the Fed needs to stay patient and pave the way for easing.

Market Movers:

• Jabil (JBL) jumped 8.9% after posting a beat-and-raise quarter and pledging $500M in U.S. investment—a patriotic play that aligns with reshoring and defense trends.

• Enphase Energy (ENPH) plunged 24%, hit by Senate talk of phasing out clean energy tax credits. First Solar (FSLR) dropped 18% in sympathy.

• Oil popped 4% to $74.67, driven by supply fears. ING warned of $100+ crude if the Strait of Hormuz is blocked.

What They’re Saying:

“Industrial activity is poised for a rebound in 2026 thanks to defense spending, tax incentives, and rate cuts.”— Bernard Yaros, Oxford Economics

WHAT WE’RE WATCHING
Events

• Today: Department of Labor - Unemployment Claims - 8:30am

  Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

• Today: Federal Reserve - Federal Funds Rate - 2:00pm

  Why You Should Care: Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

• Today: Federal Reserve - Federal Open Market Committee (FOMC) Economic Projections - 2:00pm

  Why You Should Care: It's the primary tool the Fed uses to communicate their economic and monetary projections to investors.

• Today: Federal Reserve - Federal Open Market Committee (FOMC) Statement - 2:00pm

  Why You Should Care: It's the primary tool the FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

• Today: Federal Reserve - Federal Open Market Committee (FOMC) Press Conference - 2:00pm

  Why You Should Care: It's among the primary methods the Fed uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

Earnings Reports

• Today: Korn Ferry, Smith & Wesson Brands, Aurora Cannabis Inc.

• Tomorrow: U.S. Stock Market Holiday

MARKET BRIEF
Leading News

Lilly's $1.3B Gene-Editing Bet: The Future of Heart Medicine or Expensive Science Experiment?

Why it matters:

This deal signals that one-time treatments could revolutionize chronic disease management—and potentially create massive new revenue streams for pharma giants willing to pay premium prices for cutting-edge science.

Zoom Out:

Eli Lilly (LLY) just placed a $1.3 billion wager on Verve Therapeutics (VERV), betting that gene editing can transform cardiovascular care from a lifetime prescription model into a "one-and-done" treatment paradigm. The 67% premium over Verve's closing price suggests Lilly sees something Wall Street may have missed.

This isn't just another biotech acquisition—it's a strategic pivot beyond Lilly's $30+ billion diabetes and weight-loss blockbusters (Mounjaro, Zepbound) into the next frontier of precision medicine. The target? PCSK9 gene editing that could permanently lower cholesterol with a single treatment.

Gene-editing stocks rallied on the news, with Intellia (NTLA) up 13% and CRISPR (CRSP) gaining 6%, suggesting investors are recalibrating the sector's potential after years of skepticism.

Key Insights:

• The timeline reality check: Pivotal trials won't start until late 2027, with commercial launch likely after 2030—meaning this is a decade-long investment thesis

• Market dynamics: One in 250 people has the target condition (familial hypercholesterolemia), creating a defined but substantial addressable market

• Technology validation: Verve uses proven base-editing platforms from Beam and Editas, reducing execution risk compared to novel approaches

Market Pulse:

"This is a welcome boost to the gene editing space which has been under pressure for the last few years," said Evercore ISI analyst Liisa Bayko, highlighting how alternative approaches had drawn investor attention away from the sector.

Bull’s Take:

Lilly's premium pricing suggests confidence that permanent genetic fixes will command pricing power that dwarfs traditional chronic therapies. Smart money is betting on the intersection of proven science and unmet medical need.

Headlines

• Trump will extend TikTok sale deadline for third time, White House says (link)

• Tesla stock slips after report EV maker is pausing Cybertruck and Model Y production (link)

• Amazon says AI will mean fewer ‘corporate’ jobs (link)

• Meta Teams Up With Oakley, Prada For Next-Gen AI Smart Glasses (link)

• OpenAI weighs “nuclear option” of antitrust complaint against Microsoft (link)

• Monopoly maker Hasbro cuts 3% of total workforce amid higher tariff costs (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin’s slide below $104k liquidates over $500M as war tensions escalate (link)

• U.S. Senate Passes GENIUS Act to Regulate Stablecoins, Marking Crypto Industry Win (link)

• Ethereum-based startup Fileverse unveils open source and private alternative to Google Sheets (link)

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