Tariff Uncertainty Weighs on U.S. Stocks and Business Leaders

Key takeaways

U.S. stocks react negatively to uncertainty surrounding tariffs.
Business leaders face confusion and concern regarding the effects of new tariffs on their operations.
The competition in the weight loss drug market is intensifying, with Novo Nordisk and Eli Lilly as key players.
Security concerns surge regarding the unauthorized use of AI technologies by foreign companies.
Discussions around military action against Iran are ongoing, with potential risks highlighted by U.S. military officials.

Summary

Market Reactions to Tariff Uncertainty

U.S. stocks faced a significant decline, with the Dow dropping 1.7% as concerns over new tariffs and trade policies returned. Major corporations such as American Express, Goldman Sachs, and JP Morgan saw declines, prompting worries among investors about possible impacts on their businesses. This uncertainty was exacerbated after President Trump's comments on tariffs and ongoing tensions in the Middle East.

Business Leaders Scramble for Clarity

Business leaders expressed confusion regarding the implications of the latest tariff news. Initial relief followed the Supreme Court's ruling on tariffs, but Trump’s reaffirmation of tariffs as part of his strategy left executives grappling with questions regarding consumer refunds and potential litigation. Companies, particularly small businesses, fear the financial implications as customer demand for refunds may rise.

Drug Market Dynamics: Novo Nordisk vs. Eli Lilly

In the weight loss drug sector, shares of Novo Nordisk fell by 16% after a study indicated its obesity treatment underperformed against Eli Lilly's Zepbound. Conversely, Eli Lilly's stock rose by 4.8% following regulatory approval for a new multi-dose delivery system for Zepbound, showcasing how competitive dynamics in drug efficacy and delivery can influence market performance.

National Security and AI: The Distillation Debate

Anthropic accused three Chinese AI companies of using its Claude model through a process called distillation, alleging that this poses national security risks as it could allow for the creation of AI models without the same safety measures in place. This development highlights broader concerns within the U.S. tech industry regarding the replication of advanced AI systems and the implications for competitive market integrity.

Potential Military Action Against Iran

The Pentagon raised alarms about the risks of a military campaign against Iran, reflecting ongoing discussions among U.S. officials, including that of Gen. Dan Cain. Trump assured that any military action would be easily won but discussions continue around the potential implications and strategies concerning Iran's response.

Show notes

P.M. Edition for Feb. 23. U.S. stocks were down today after the latest tariff moves over the weekend, while U.S. business leaders are scrambling to figure out what this means for them. We hear from reporter Chip Cutter about the questions they have and how they’re trying to address them. Plus, Anthropic has accused three Chinese AI companies of using its Claude model to improve their own systems. WSJ reporter Robert McMillan discusses why Anthropic says that’s a threat to national security… and its business. And the Pentagon is flagging risks of a major operation against Iran to President Trump. Alex Ossola hosts.

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