Stock Market Update

[BRIEFING.COM] The major averages trade in a steady range near session highs. 

Novo Nordisk A/S (NVO 44.40, -3.23, -6.78%) is plunging lower after announcing that its EVOKE and EVOKE+ Phase 3 trials of oral semaglutide did not demonstrate a statistically significant reduction in Alzheimer's disease progression versus placebo. The company said the two-year primary analysis failed to meet the prespecified primary endpoint (CDR-SB), and a planned one-year extension was discontinued.

NVO's failure in EVOKE underscores how difficult it is to convert promising biomarker signals into meaningful clinical outcomes in Alzheimer's disease. The readout will also prompt investors to reassess the broader thesis that GLP-1 drugs could become a multi-disease platform beyond diabetes and obesity.

However, the health care sector (+0.7%) is off to another solid start today. The sector's largest component, Eli Lilly (LLY 1063.83, +4.13, +0.39%), surpassed $1 trillion in market capitalization, becoming the first health company to do so.