Thursday, June 4
Drug trial deaths sink biotech; chipmaker gets trillion-dollar nod
A cancer drug's safety scare and a chip company's star turn from Nvidia's CEO made for a day of sharp contrasts in the market.
Top Stories
A cancer drug that works is still too dangerous to celebrate
ADC Therapeutics' shares collapsed more than 50% after the company revealed its lymphoma drug cleared the bar for effectiveness in a late-stage trial but also showed more deaths among patients who received it than among those who did not.
Passing a clinical trial on efficacy while failing on patient survival is the worst kind of mixed result in drug development, because regulators will almost certainly demand answers before they let this drug anywhere near a broad patient population.
Nvidia's CEO just handed Marvell the most valuable endorsement in tech
At Computex, Nvidia's Jensen Huang publicly called Marvell Technology the "next trillion-dollar company," sending shares up sharply on a day when most chipmakers were under pressure following weak guidance from a rival.
The endorsement matters beyond flattery because Marvell's hardware connects Nvidia's own chips to the broader network, meaning Huang is essentially telling the world that his company's continued dominance depends on Marvell succeeding too.
Lululemon's brand problem is bigger than one bad quarter
Lululemon slashed its full-year outlook, now expecting sales to be flat or even lower in 2026, a dramatic retreat from the growth story the company has told for years, with executives pointing to fading appeal among American shoppers and intensifying competition.
A new CEO and a recently resolved boardroom fight suggest the company knows it has a structural problem with its identity, not just a temporary sales dip, and fixing that is a much harder task than cutting a forecast.
Also Today
- Blackstone capped investor withdrawals from its private credit fund
- CrowdStrike beat earnings but growth wasn't fast enough for Wall Street
- Comcast's eight-billion-dollar bet on a U.K. theme park
Takeaway
The day's clearest theme was the gap between a company doing something impressive and the market actually rewarding it: Marvell got a high-profile endorsement and still had to fight headwinds, CrowdStrike beat its numbers and still fell, and ADC Therapeutics proved its drug works while its stock lost half its value.
The most concrete thing to watch Friday is whether Marvell gets confirmed for S&P 500 inclusion, which would force index funds to buy the stock automatically and could lock in the week's gains regardless of broader chip-sector sentiment.