MORNING NEWS

The Federal Reserve’s first statement under Chairman Kevin Warsh clocked in at only 132 words. Wall Street was troubled by the final six of them. “The Committee will deliver price stability.” The central bank held its benchmark rate steady, as expected, in Kevin Warsh’s first meeting as Fed chairman. But officials’ quarterly economic projections showed that nine of 19 officials penciled in at least one rate increase by the end of the year, up from none in March.

Sandoz today inaugurates a new biosimilar development centre in Ljubljana, Slovenia, to strengthen and expand its in‑house biosimilar capabilities. The fully digitally integrated USD 99 million facility covers about 10,000 m² and employs more than 200 scientists. It supports end-to-end drug substance and drug product development, backed by advanced analytics and data science.

Siegfried, a leading global Contract Development and Manufacturing Organization (CDMO) for the pharmaceutical industry headquartered in Zofingen, Switzerland, today inaugurates its new large-scale production facility for API manufacturing in Minden, Germany. The facility adds 100 m³ of reactor capacity and strengthens Siegfried's position as one of the leading global CDMOs for small molecule drug substances.

Shares in SpaceX soared 19% Friday as Elon Musk’s rocket maker pulled off the largest initial public offering ever and one of the smoothest in recent history. The company, valued at $1.77 trillion when it sold $75 billion worth of shares a day earlier, ended its first day of trading with a market value of around $2.2 trillion, putting it ahead of Broadcom and Tesla to make it the sixth-most valuable public company in the U.S. The offering handed longstanding SpaceX investors and employees billions in collective gains and turned Musk into the world’s first trillionaire.

ORCL reported higher profit as surging revenue from it cloud infrastructure business more than offset a decline in its software during the fourth quarter. The cloud-computing and software company on Wednesday reported a 47% increase in its cloud revenue, to $9.9 billion, which includes a 93% increase in cloud-infrastructure revenue. Growth in the company’s Oracle Cloud Infrastructure business reflects continuing strong demand for artificial-intelligence computing workloads, co-Chief Executive Officer Clay Magouyrk said on an analyst call. “AI infrastructure makes the existing cloud infrastructure market look small. Everything we see shows this market size is trillions of dollars per year,” Magouyrk said.

OpenAI, which kick-started the artificial-intelligence boom with the 2022 release of ChatGPT, is officially preparing to stage an initial public offering that will test investor appetite for AI companies. The company led by Sam Altman confidentially filed IPO paperwork with the Securities and Exchange Commission, the startup said in a written statement. The filing sets up the company to potentially go public as soon as this fall, though OpenAI said it hasn’t yet decided on timing.

Campbell’s said weak demand for snacks continued to pressure sales in the latest quarter, but the company is seeing some signs of progress in efforts to connect with consumers. Chief Executive Mick Beekhuizen said snacks consumption was soft in the quarter due to efforts to stabilize fresh bakery operations, including work to improve availability and customer fill rates. Beekhuizen also cited weak demand for salty snacks like chips and pretzels. “I recognize that our performance remains well below expectations,” Beekhuizen said during a call with analysts.

Google has agreed to rent data-center capacity from SpaceX, expanding the rocket company’s artificial-intelligence business ahead of its initial public offering. Google will pay SpaceX $920 million a month from October 2026 to June 2029 in a deal that includes the computing capacity of at least 110,000 Nvidia NVDA chips, according to a SpaceX securities filing on Friday. The deal will ramp up over the summer, and Google has the right to cancel the agreement in October if SpaceX doesn’t provide the promised chips, SpaceX said. Either party can cancel the agreement starting next year with 90 days’ notice. This is the second major deal SpaceX has made in recent months to rent out computing capacity to a competitor.

Lululemon cut its outlook for the year, citing fresh challenges, including a spike in negative commentary around the brand and a lackluster response to new products. The headwinds derailed what the athleisure company said were some budding signs of positive traction in the fiscal first quarter as it worked to improve results in North America, its largest market.

Broadcom declined late Wednesday as guidance failed to impress, overshadowing the semiconductor company’s better-than-expected results. For the fiscal second quarter, Broadcom notched record quarterly earnings and revenue, amid supercharged growth in its artificial intelligence chip business. Still, Broadcom shares were down 6.1% in after-hours trading after ending Wednesday’s regular session down 0.5% to $479.23. Broadcom reported adjusted earnings of $2.44 a share for the quarter ended May 3, compared with $1.58 a share a year ago and above Wall Street’s expectation of $2.40 a share. Revenue grew 48% to $22.19 billion, edging by the analyst consensus call for $22.13 billion, according to FactSet.