Daily market update: AstraZeneca and Tesla, SpaceX and xAI merger report

It’s a potentially big day for financial markets amid chatter that Donald Trump will announce his pick for the new Federal Reserve chair.

Reports suggest Kevin Warsh is primed to take the role. Investors seem to be taking this as a positive sign in terms of Fed independence – with Warsh perceived as a more orthodox choice versus some of the other mooted names. He has previously served as a Fed governor and went up against Powell when he got the job of chair in 2017.

The decline in US futures prices and uptick in the dollar reflect the thinking that Warsh won’t be a marionette for the Trump administration. It implies the chances of aggressive rate cuts in 2026 regardless of the backdrop, something which Trump has not been shy in calling for, are slimmer.

Whether Warsh will transform from a hawk to a dove thanks to external pressure, assuming he gets the job, will only become clear over time.

Some calm was restored to the UK market after yesterday’s frenzied trading in commodities, although the mining sector was bearing the scars from the volatility in share price terms on Friday.

Copper, gold and silver have all beaten a hasty retreat from their all-time highs, in part thanks to the move higher in the dollar and after an extraordinary surge, both last year and in the first weeks of 2026.

Traders will be watching closely to see if this is a short-term correction or a more pronounced reversal of the big rally in these metals over recent times.

AstraZeneca

Many people have called weight-loss drugs the biggest opportunity in the healthcare sector for decades. While Eli Lilly and Novo Nordisk have already enjoyed first-mover advantage, it’s no surprise to see multiple other players coming up the rear.

Among them is AstraZeneca, which had already made in-roads into the space, albeit with early-stage developments rather than a product ready to go. It has now struck a new deal with China’s CSPC on a series of development programmes.

This builds on earlier news that AstraZeneca will invest $15 billion in China to boost medicines manufacturing and research and development.  

Weight-loss drug usage has dramatically jumped over the past year, and the direction of travel looks like continued rapid growth for years to come if prices come down, efficacy improves, and the way the medicines are administered becomes more convenient. It suggests there is room for more than one player in the market, hence why so many biotechs and big pharma companies are ploughing money into drug developments in this field.  

AstraZeneca is a giant in the world of medicines, and it makes sense for it to turn up the dial on weight-loss drug developments.

SpaceX / Tesla / xAI

There is speculation some of Elon Musk’s companies could come under one roof. The idea that SpaceX might merge with either Tesla, xAI or both, might not seem as absurd as it first sounds.

They all have technology at the heart of what they do, and AI is prevalent in their growth plans. SpaceX uses AI in rocket landings, satellite management and more. xAI uses the technology for a chatbot and Tesla uses it in its robots and various transportation operations.

Elon Musk is constantly dashing between his plethora of companies and having them as a single corporate entity could help him to focus more. However, there is also a feeling that this would be Musk empire-building. Everything under one roof creates the idea of a Musk Metropolis – a vision of the future, with one man and a white cat wanting to rule the world.