Nvidia (NVDA) shares are falling in premarket trading on a “triple witching” day when stock options, stock index futures, and stock index options contracts expire at the same time. Biotech Gilead Sciences (GILD) continues to rise after a study showed its lenacapavir drug is effective in preventing HIV in women. Biotech Sarepta Therapeutics (SRPT) shares are surging after U.S. regulators more broadly approved a gene therapy for the treatment of muscle-wasting disease. Fast-casual restaurant chain Chipotle Mexican Grill (CMG) shares are in focus ahead of a 50-for-1 stock split next Wednesday. Used-car dealer CarMax (KMX) shares are rising despite quarterly earnings missing Wall Street expectations. U.S. stock futures are falling as Nvidia shares fell Thursday, halting record highs for the Nasdaq and S&P 500. Here’s what investors need to know today.
1. NVIDIA continues to fall amid triple witching
Nvidia (NVDA) shares fell 1.5% in premarket trading, continuing a sell-off that began Thursday when the artificial intelligence (AI) chipmaker was knocked from its position as the world’s most valuable company. Microsoft (MSFT), which reclaimed the title on Thursday, was little changed in premarket trading. Nvidia, whose stock has risen more than 160% this year amid the AI ​​boom, will be in particular focus on Friday as it faces a “triple witching.” Triple witching is a quarterly event in which stock options, stock index futures and stock index options contracts expire simultaneously on the same trading day, which can lead to increased market volatility. Triple witching occurs on the third Friday of March, June, September and December.
2. Gilead’s stock price continues to rise due to the effectiveness of its HIV drug
Gilead Sciences (GILD) extended its rally from Thursday, rising 3% in premarket trading after the biotech company said a Phase 3 clinical trial found its injectable lenacapavir to be 100% effective in preventing HIV infection in women. Gilead said the results were so positive that an independent data monitoring committee recommended the company end the blinded phase of the study and offer lenacapavir to all participants.
3. Sarepta and Erebidis surge with expanded FDA approval
Shares of biotech company Sarepta Therapeutics (SRPT) jumped 37% in premarket trading, extending gains from Thursday, after U.S. regulators gave approval for broader use of the company’s Duchenne muscular dystrophy drug. The U.S. Food and Drug Administration (FDA) has approved Erebdis, previously only approved for children ages 4 and 5, for use in all patients over the age of 4. The FDA says the disease is “a rare and serious genetic disorder that worsens over time and leads to muscle weakness and wasting in the body.”
4. Eyes on Chipotle ahead of its 50-for-1 stock split next week
Fast-casual restaurant chain Chipotle Mexican Grill (CMG) shares are up less than 1% after falling 6.2% on Thursday, its biggest one-day drop since last July. The drop comes ahead of a 50-for-1 stock split next Wednesday that will make the company’s shares more accessible to more investors. The company’s shares are up more than 40% since the beginning of the year and have more than doubled since the start of 2023.
5. CarMax posts profit despite below-expected results
Shares of used-car retailer CarMax (KMX) rose 1.2% in premarket trading, despite the company reporting quarterly earnings that missed Wall Street expectations. However, the company announced it would expand its asset-backed securitization program to boost financing revenues. The company reported first-quarter fiscal 2025 net sales of $7.11 billion, down 7.5% from $7.69 billion a year earlier and below the $7.23 billion expected by analysts surveyed by Visible Alpha. Earnings per share (EPS) were $0.97, below the $0.98 forecast. Retail used-vehicle sales were down 3.1% year over year, and wholesale sales were down 8.3%, which the company said was “impacted by lower seasonal price increases year over year.”
