RFK Jr. Tanks Pharma Stocks, Nvidia Earnings Loom

Pharmaceutical stocks fell heavily across the US and Europe on Friday as President-elect Donald Trump lined up vaccine critic Robert Kennedy Junior to head up the Department of Health and Human Services. Attention now shifts to Trump’s potential Treasury Secretary picks, including Kevin Warsh and Marc Rowan. Markets are focussed on Nvidia’s upcoming results, with expectations of an 80% revenue surge in Q3 to $32.9 billion The dollar climbed versus yen overnight after BOJ Governor Kazuo Ueda provided no clear timeline for rate hikes.

Equities

The FTSE 100 edged down 0.1% on Friday, marking its fourth consecutive weekly decline, as shares in major pharmaceutical companies weighed on the index. AstraZeneca fell 3.1% and GSK slipped 3.9%, in line with broader losses among vaccine makers following US President-elect Donald Trump’s announcement of Robert F. Kennedy Jr. as his pick to lead the Department of Health and Human Services. Concerns over his stance on vaccines affected sentiment across the sector. Meanwhile, the midcap FTSE 250 index also dipped 0.2%.

Not all sectors struggled. Land Securities rose 4.3% after projecting annual earnings above market expectations, providing some relief to an otherwise subdued market. TT Electronics surged 40% after rejecting two takeover offers from Volex Plc, which itself fell 11% following the failed bids.

On Wall Street, US indices closed sharply lower on Friday. The S&P 500 dropped 1.32%, while the Nasdaq slid 2.24%—their largest one-day losses in two weeks—amid concerns about a slower pace of interest rate cuts and investor reactions to Trump’s cabinet picks. The Dow Jones Industrial Average lost 0.7%. Applied Materials saw its stock tumble 9.2% after forecasting first-quarter revenue below Wall Street expectations, dragging down the Philadelphia Semiconductor Index by 3.4%.

Vaccine makers Moderna and Pfizer also declined sharply, with shares falling 7.3% and 4.7% respectively, contributing to a 1.88% drop in the healthcare sector. Consumer staples stocks were similarly pressured by Trump’s nomination of Kennedy, with Monster Beverage down 7%, Lamb Weston off 6%, and Keurig Dr Pepper shedding 5%.

Forex & Commodities

The US dollar rose 0.35% against the yen to 154.72 after Bank of Japan Governor Kazuo Ueda hinted at future interest rate increases but gave no firm timeline. This followed warnings from Japan’s Finance Minister Katsunobu Kato about potential intervention to stabilise the yen, which had pulled the currency back slightly last week. Against a basket of currencies, the dollar held steady at 106.660, near Friday’s one-year high of 107.07, bolstered by a sharp rise in 10-year Treasury yields since October.

Gold prices climbed nearly 1% to $2,584.80 per ounce, rebounding from last week’s sharp sell-off. A pause in the dollar’s rally provided relief to bullion, which is sensitive to movements in the greenback.

Oil prices inched higher after escalations in the Russia-Ukraine conflict raised geopolitical concerns. Brent crude futures rose 0.3% to $71.22 per barrel, while US West Texas Intermediate crude added 0.1%, reaching $67.08. Over the weekend, Russia launched a major airstrike on Ukraine, intensifying tensions. However, forecasts of a global oil surplus and weak demand in China have capped gains.