Market Beats | Harvard Pushes Back Against Trump Tax Threat; Eli Lilly Shares Surge as Oral Weight-Loss Pill Matches Ozempic in Efficacy; UnitedHealth Slashes Profit Forecast Amid Soaring Medical Costs; Trump Slams Fed for Delayed Rate Cuts; Global Payments Acquires Worldpay for $24.3 Billion; ECB Cuts Interest Rates to 2.25%

—— Harvard Pushes Back Against Trump’s Tax Threat; Eli Lilly Shares Surge as Oral Weight-Loss Pill Matches Ozempic in Efficacy; UnitedHealth Slashes Profit Forecast Amid Soaring Medical Costs; Trump Slams Fed for Delayed Rate Cuts; Global Payments Acquires Worldpay for $24.3 Billion; ECB Cuts Interest Rates to 2.25%

1. Harvard Pushes Back Against Trump’s Tax Threat

Harvard University is pushing back after President Donald Trump said the school should lose its tax-exempt status, and multiple media outlets reported that the IRS is considering such a move — intensifying a growing confrontation between the federal government and the nation’s wealthiest university.

“There is no legal basis to rescind Harvard’s tax-exempt status,” university spokesman Jason Newton said in a statement late Wednesday, warning that such action would “undermine Harvard’s medical research efforts and diminish its ability to provide financial aid to students.”

With a $53 billion endowment, Harvard has become the highest-profile university resisting Trump’s efforts to reshape higher education through funding pressure. The administration has already rescinded $400 million in federal grants to Columbia University and frozen dozens of research contracts at Princeton, Cornell, and Northwestern.

While Harvard’s defiance has been met with praise from Democrats and many alumni — including former President Barack Obama — the financial retaliation has been swift and severe.

A federal task force on antisemitism announced Monday night that it will freeze $2.2 billion in multiyear research funding. Federal agencies have also said they are reviewing approximately $9 billion in grants and contracts awarded to the Cambridge-based institution.

Analysts say the clash may become a landmark battle over the limits of political influence on academic institutions and the future structure of federal funding for US universities.

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2. Eli Lilly Shares Surge as Oral Weight-Loss Pill Matches Ozempic in Efficacy

Shares of Eli Lilly & Co. surged as much as 14% in premarket trading Wednesday after new data showed its experimental weight-loss pill, orforglipron, performed comparably to Novo Nordisk A/S’s blockbuster injectable drug Ozempic — signaling the potential arrival of a convenient, needle-free alternative.

The trial is one of several underway at Lilly to evaluate orforglipron for treating diabetes, obesity, and related conditions such as sleep apnea. Analysts and investors had expected the pill to show efficacy on par with Ozempic, and the results met or exceeded those expectations.

In the study, patients taking orforglipron lost an average of 16 pounds, or 7.9% of their body weight. That compares favorably to the approximately 6% weight loss seen in diabetic patients on the highest dose of Ozempic. Importantly, Lilly noted that participants had not yet hit a weight-loss plateau when the trial ended, suggesting potential for continued improvement.

In terms of blood sugar control, orforglipron lowered glucose levels by an average of 1.3%, compared to Ozempic’s 2.1%.

Novo Nordisk’s US-listed shares fell 3.9% following Lilly’s announcement, while shares of Hims & Hers Health Inc., which sells compounded versions of weight-loss injections, dropped 7.6%.

Analysts say orforglipron could reshape the weight-loss drug market by providing an effective oral GLP-1 alternative, significantly improving patient convenience and adherence in a fast-growing sector currently dominated by injectable treatments.

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3. UnitedHealth Slashes Profit Forecast Amid Soaring Medical Costs

UnitedHealth Group Inc. shares plunged as much as 19% in premarket trading Thursday after the health-care giant cut its full-year earnings guidance due to a sharp and unexpected rise in medical expenses — a rare move for a company known for cautious forecasting.

In a statement, UnitedHealth said medical costs climbed “far above” expectations as the first quarter ended, forcing the company to lower its projected adjusted earnings to $26–$26.50 per share for 2025. That’s down significantly from its previous guidance of $29.50–$30 a share.

The earnings revision is highly unusual for UnitedHealth, which typically raises its forecast as the year progresses. The company had reaffirmed its guidance just three months ago.

The surprise news rattled investors and sent shares of rival health insurers such as Humana Inc. lower as well.

UnitedHealth, the largest provider of Medicare Advantage plans, said care utilization in that segment has exceeded its forecasts. Additionally, its Optum Health business has been affected by “unanticipated changes” in care delivery that are disrupting reimbursement patterns.

Both business lines are under pressure from recent US government reforms to Medicare payments, which aim to limit certain billing tactics used by insurers to boost revenue.

Analysts warned the earnings cut signals deeper risks related to medical cost inflation and shifting regulatory pressures, potentially challenging the long-term profitability assumptions of the managed care sector.

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4. Trump Slams Fed for Delayed Rate Cuts

President Donald Trump lashed out at Federal Reserve Chair Jerome Powell on Thursday, saying the Fed chief’s “termination can’t come fast enough,” as he criticized the central bank for failing to lower interest rates so far this year.

Writing on the Truth Social platform, Trump derisively referred to Powell as “Too Late,” suggesting the Fed should have already cut rates and should do so immediately.

It remains unclear whether Trump was referencing the scheduled end of Powell’s term as Fed chair in May 2026, or whether he was implying that Powell should be removed from office early. The White House did not immediately respond to requests for clarification.

Powell’s term as Fed chair runs through May 2026, while his term as a member of the Fed’s Board of Governors extends to February 2028.

Trump’s comments came just a day after Powell, speaking in Chicago, reiterated that the central bank would remain cautious on rate cuts, saying officials needed greater clarity on inflation and the broader economy before acting.

The renewed criticism rekindles tensions between Trump and Powell that date back to Trump’s first term, during which he frequently criticized Powell for raising rates too quickly — despite having nominated him to lead the Fed in 2018.

Analysts say Trump’s remarks may signal an increasingly politicized approach to monetary policy as he continues his 2024 presidential campaign and pushes for more aggressive easing to stimulate the economy.

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5. Global Payments Acquires Worldpay for $24.3 Billion

Global Payments Inc. has struck a series of deals to acquire rival Worldpay for $24.3 billion, solidifying its position as one of the largest merchant acquirers in the US.

The company acquired the remaining 45% stake in Worldpay from Fidelity National Information Services Inc. (FIS) and simultaneously purchased the 55% stake held by private equity firm GTCR LLC, according to separate announcements Thursday. The total deal value includes $1.55 billion in anticipated tax assets.

In a separate but concurrent move, Global Payments agreed to sell its issuer-solutions business to FIS in a transaction with an enterprise value of $13.5 billion.

“The acquisition of Worldpay and divestiture of issuer solutions further sharpen our strategic focus and simplify Global Payments as a pure play merchant solutions business,” said CEO Cameron Bready in a statement.

The transactions mark a major consolidation in the payments industry, creating a powerful player at a time when the sector is undergoing rapid transformation and streamlining.

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6. ECB Cuts Interest Rates to 2.25%

The European Central Bank cut its benchmark interest rate by 25 basis points to 2.25% on Thursday, its lowest level in more than two years, as it prepares for the economic fallout from the escalating global trade war sparked by US President Donald Trump.

The move, widely expected by markets, comes after Trump announced sweeping tariffs on most of the US’s major trading partners on April 2, triggering volatility in global markets and raising concerns among policymakers in the eurozone.

“The outlook for growth has deteriorated owing to rising trade tensions,” the ECB said in its policy statement. “The adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions.”

Notably, the ECB dropped language from last month’s statement that monetary policy was becoming “less restrictive,” a change interpreted by some analysts as a signal that there may be limited room for further easing.

Pooja Kumra, a rates strategist at TD Securities, said the tone appeared “hawkish” but emphasized the ECB’s warning on the downside risks to growth posed by tariffs. “Feels that’s a balancing act between hawks and doves,” she said.

Trump, ahead of the ECB decision, again attacked Federal Reserve Chair Jerome Powell, contrasting the ECB’s rate cuts with the Fed’s decision to hold rates steady at its last meeting in March. Trump called Powell “always TOO LATE AND WRONG” and said his “termination cannot come fast enough!”

Thursday’s cut marks the ECB’s seventh reduction since it began easing in June last year.

Traders maintained expectations of at least two more quarter-point cuts by year-end, based on swaps market pricing after the decision. The euro was little changed after the announcement, trading around $1.135.

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7. Trump Tariffs Prompt Private Equity to Hit Pause on Deals

U.S. stocks faced a downturn on Friday afternoon, closing in negative territory as the automotive and Chinese sectors led the fall. This decline was primarily driven by an announcement from the White House confirming President Donald Trump’s intention to proceed with significant tariffs on imports from Mexico, Canada, and China starting Saturday.

Specifically, Trump’s administration plans to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports. This news negatively impacted investor sentiment, particularly affecting a UBS Group AG basket of stocks deemed at risk from these tariffs, which plunged by 3.7%. Additionally, despite an initial gain, the S&P 500 Index ended the day down by 0.5%.

The financial markets reacted swiftly, with the Bloomberg Dollar Spot Index reaching a session high, indicating a flight to safety among investors. Meanwhile, the Cboe Volatility Index (VIX), often referred to as the “fear gauge,” increased to just over 16, reflecting growing uncertainty and risk aversion among traders.

The ongoing threat of tariffs has been a significant concern for U.S. equity markets since Trump’s election victory in November. Analysts and strategists have cautioned that such high levies could spark inflationary pressures, potentially leading to broader economic disruptions and negatively impacting stock valuations.

Given this backdrop, sectors such as automotive, technology, and manufacturing, which have substantial exposure to international trade, are particularly vulnerable to the effects of prolonged trade wars and the imposition of tariffs.

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