———— $5.5 Trillion Triple-Witching Day Hits Wall Street; Gilead HIV Drug Shows Stunning Results; Canada to Impose Tariffs on Chinese EVs; U.S. to Ban Investments in Chinese Tech Firms; Nvidia Loses $200 Billion in Market Value; Citi and UBS Exit Municipal Bond Business; Hacker Auctions LendingTree Customer Data
1. $5.5 Trillion Triple-Witching Day Hits Wall Street
Today marks a major “triple-witching” event for U.S. markets, with stock index, equity, and ETF options totaling $5.5 trillion set to expire.
When options expire, investors must either exercise them, let them lapse, or roll them into longer-dated contracts.
Currently, implied volatility on S&P 500 options remains at its lowest since the pandemic began. Meanwhile, the index itself has hit record highs, driven by tech giants like Nvidia.
However, today also coincides with a rebalancing of the Dow Jones Industrial Average, leading ETFs to adjust their portfolios—factors that are expected to create major volatility.
Experts believe most of the expiring options are skewed bullish, and the final hour of trading is likely to be highly volatile.
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2. Gilead HIV Drug Shows Stunning Results
In a breakthrough trial, Gilead Sciences’ HIV prevention drug, lenacapavir, was shown to be 100% effective in preventing HIV infection among African women and adolescent girls—making it the most successful HIV trial to date.
Each year, about 1.3 million people worldwide contract HIV. While current treatments are effective, pharmaceutical companies continue to seek improved methods of prevention and care.
RBC Capital Markets analysts said the results hit Gilead’s best-case expectations. The injectable, required only twice a year, could generate an estimated $1.7 billion annually.
Gilead’s stock rose 8.3% following the release of the trial results.
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3. Canada to Impose Tariffs on Chinese EVs
Sources revealed that Canada plans to follow the U.S. and EU by introducing tariffs on Chinese electric vehicle imports.
In May, the Biden administration raised tariffs on Chinese EVs to 102.5%. Canadian Prime Minister Justin Trudeau has faced mounting pressure to implement similar trade measures.
Chinese automakers like BYD are among the primary targets. Last year, EV exports from China to Canada surged to $1.6 billion.
Western countries are increasingly concerned about China’s export dominance and growing control over global supply chains.
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4. U.S. to Ban Investments in Chinese Tech Firms
The U.S. Treasury Department announced today it will move forward with a new policy banning American investors and companies from investing in Chinese tech firms involved in semiconductors, quantum computing, and AI.
This policy has been in the works for over a year as part of President Biden’s broader strategy to restrict China’s development of sensitive technologies.
Treasury Secretary Janet Yellen stated the policy aims to slow China’s development of critical AI applications.
The restrictions will target sectors including semiconductors, microelectronics, quantum information technologies, and AI systems.
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5. Nvidia Loses $200 Billion in Market Value
Nvidia’s stock dropped more than 7% today, losing its spot as the world’s most valuable company. Traders attributed the plunge to profit-taking after an aggressive rally, not any fundamental weakness.
AJ Bell’s investment chief said such volatility is typical for Nvidia. Despite today’s $200 billion loss, the company’s market cap remains robust—comparable to that of Apple or Microsoft.
Amid today’s options expiry and portfolio rebalancing, Nvidia’s steep decline highlights the fragility of ultra-high valuations, even after a nearly 200% YTD gain.
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6. Citi and UBS Exit Municipal Bond Business
According to a municipal finance report, from 2005 to 2023, profits for major municipal bond underwriters like Citigroup and UBS declined by 30%–50%.
Analyzing over 200 state and municipal bond issues, the report found that growing participation by institutional investors and increased transparency have squeezed margins.
Over the long term, if major banks exit municipal underwriting, governments may face greater difficulties in funding infrastructure, schools, and bridges.
Experts say Wall Street’s retreat isn’t political—it’s simply about shrinking profits.
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7. Hacker Auctions LendingTree Customer Data
A hacker who breached QuoteWizard, a subsidiary of LendingTree, is now auctioning off user data. LendingTree’s core operations remain unaffected, and the company is still investigating the source and scale of the breach.
Reports suggest user data is already listed on illegal forums, with the highest bidder gaining access.
LendingTree CISO Arun Sankaran stated that the investigation is ongoing, and affected customers will be notified. The good news is that no financial data or information from LendingTree’s parent company was compromised.
LendingTree stock fell 3.3% today following the incident.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.