U.S. markets see semiconductor rebound and Eli Lilly obesity drug trial updates

U.S. markets showed mixed performance as the third quarter concluded. The S&P 500 rose approximately 2.6% and the Nasdaq gained 3% for the quarter, driven largely by interest in artificial intelligence. Despite overall market weakness caused by rising long-term Treasury yields, the semiconductor sector saw a rebound. The Direxion Daily Semiconductor Bull 3X Shares (SOXL) rose 3.30% to $146.99, buoyed by expectations surrounding AI infrastructure investment and memory chip demand from companies like NVIDIA and Micron.

In healthcare, Eli Lilly released Phase 2b clinical trial results for its obesity drug candidate, EloraTZP, at the European Association for the Study of Diabetes annual meeting. The combination therapy, involving eloralinantide and tirzepatide, achieved an average weight loss of 23.3% after 48 weeks, outperforming the 14.8% weight loss seen in the tirzepatide-only group.

However, the combination therapy was associated with higher gastrointestinal side effects, leading to treatment discontinuation rates between 10.8% and 27.0%, compared to just 2.9% for the single-agent group. Eli Lilly plans to initiate Phase 3 trials for EloraTZP by the fourth quarter of 2026, utilizing an optimized dose escalation schedule.