Closing Bell: Tech Slide Deepens and Geopolitical Tensions Fuel Volatility

Key Points

• Markets slid on geopolitical and tech concerns: Escalating tensions between the U.S. and Iran weighed on sentiment, while weak guidance from AMD and continued selling in software pressured the tech sector.
• Eli Lilly earnings highlight momentum in weight loss: LLY beat expectations with Q4 revenue of $19.3B versus $17.96B consensus, driven by 46% volume growth from Zepbound and Mounjaro.
• Super Micro rallies on AI demand: SMCI jumped 13.78% after an earnings beat and strong outlook, aided by $1.5B in delayed shipments.

Markets ended the day lower as geopolitical tensions between the United States and Iran continued to escalate, while weakness in the technology sector persisted following disappointing guidance from AMD and ongoing selling pressure in software stocks. The S&P 500 (SPX) finished down 0.51%, the Nasdaq-100 (NDX) dropped 1.77%, and the Russell 2000 (RUT) also remained under pressure, closing lower by 0.90%. Energy, Materials, and Real Estate were the leading sectors, while Information Technology and Communication Services lagged.

Eli Lilly Continues to Gain Share in the Weight-Loss Market

Eli Lilly (LLY) reported earnings that exceeded market expectations as its presence in the weight-loss industry continued to expand at a healthy pace. The company posted Q4 revenue of $19.3 billion, well above the consensus estimate of $17.96 billion. The upside was driven by 46% volume growth, led by strong demand for its Zepbound and Mounjaro product lines. Eli Lilly also issued revenue and profitability guidance that came in well ahead of Wall Street forecasts. Shares closed up 10.33% on the session.

Super Micro Sees Strong Demand for AI Products

Super Micro Computer (SMCI) surged 13.78% after reporting earnings that topped consensus expectations and providing an upbeat outlook. The revenue beat was supported in part by $1.5 billion in previously delayed shipments. While the company continues to face headwinds from input cost pressures, tariffs, and component shortages that have weighed on profitability, management expressed confidence that expense-control initiatives and an expanding order backlog will more than offset these near-term challenges.

Market Events for Tomorrow

• 07:30 AM ET: Challenger Job Cuts 
• 08:30 AM ET: Unemployment Claims           
• 10:00 AM ET: JOLTS Job Openings
• 10:30 AM ET: Natural Gas Storage
• 10:50 PM ET: FOMC Member Bostic Speaks

Notable Earnings for Tomorrow

• A.M: AGCO, MT, BMY, GOOS, CAH, CARR, CI, CMS, COP, CMI, ENR, EL, HSY, ICE, IQV, KKR, BTU, PTON, RL, ROK, SHEL, SIRI, SNA, SPB, TPR, TRI, TW, WEC, XEL, XPO
• P.M: AFRM, AMZN, TEAM, GOLD, COTY, COUR, DLR, EQR, FLS, FTNT, HUBG, ILMN, MTD, MCHP, MOH, NWS, POST, RDDT, RBLX, MSTR, WMG, WERN

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