Interest rates and corporate developments related to AI will be the focus of U.S. markets this week. Reports have emerged on potential cooperation between SK hynix and Intel, the acquisition of Merida, and Adobe’s plans to provide AI tools in Saudi Arabia.
U.S. markets were all slightly lower at the open, with the Dow, S&P 500 and Nasdaq trading down modestly. Options market volume remained high, while the put-to-call ratio stood at 1.02, indicating a slight bias toward puts. Volatility was in a phase where IV exceeded HV, but IV rank and IV percentile remained low. Going forward, stock prices are expected to remain near their highs, while supply and demand conditions are likely to remain broadly neutral.
In the semiconductor sector, INTEL shares rose, while reports said SK hynix was considering foundry production for INTC. Several securities firms rated INTC “Buy” or higher, while the median price target was reported to be $110.
In the pharmaceutical sector, Eli Lilly announced plans to acquire privately held Merida Biosciences for up to $2.88 billion. Against the backdrop of the success of its obesity treatment drugs, the company indicated that it intends to expand into other therapeutic areas.
In the software and AI sector, Adobe announced plans to partner with Saudi government-backed Humain to provide AI tools free of charge to citizens of Saudi Arabia for 12 months. The total value is expected to exceed $4 billion.