Stocks Slide as U.S. Strikes Kharg Island Before Iran Deadline
Stocks are down more than -0.4% in premarket trading as President Trump's deadline for Iran to reopen the Strait of Hormuz drew near. Trump set an 8 p.m. ET cutoff, warning that failure to comply could trigger U.S. strikes on key Iranian infrastructure. Reports then emerged that the U.S. had already attacked military targets on Kharg Island, Iran's main oil export hub, with electricity disruptions reported after projectiles struck transmission lines.
Health Insurers Cut Prior Authorization Requirements
Health insurer stocks jumped sharply in premarket trading with UnitedHealth Group (UNH) up +7%, Humana (HUM) up +11%, and CVS Health (CVS) up +6% after the Trump administration finalized a +2.48% increase in Medicare Advantage payment rates for 2027, adding more than $13B to insurer payments. The move reverses a January proposal for a near-flat +0.09% increase that had hammered the sector, since Medicare Advantage rates directly determine how much insurers can charge for premiums and benefits. Members of the industry's main trade group also separately reported removing 11% of prior authorization requirements, with Medicare Advantage plans cutting more than 15%.
Broadcom Locks In Google TPU Deal Through 2031
Broadcom (AVGO) is up +3% in premarket trading after signing a long-term agreement with Alphabet's (GOOGL) Google to develop and supply future generations of its tensor processing unit AI chips, with a networking supply agreement covering GOOGL's next-gen AI racks through 2031. AVGO also expanded its arrangement with Anthropic, giving the AI startup access to roughly 3.5 gigawatts of TPU-based compute starting in 2027, up from one gigawatt currently being delivered. Separately, Anthropic revealed its annualized revenue run rate has surpassed $30B, up from $9B at year-end 2025.
AbbVie and Roche Join TrumpRx Platform
AbbVie (ABBV) and Roche's (RHHBY) Genentech unit have joined the government-run TrumpRx platform as the 10th and 11th drugmakers on the direct-to-consumer site, with ABBV's Humira available at an 86% discount and Genentech's Xofluza dropping to $50 from roughly $168. The platform now lists 61 products, up from about 40 at launch in February, with Amgen (AMGN) also expanding its offerings to include Enbrel and Otezla.
SpaceX Details IPO, Plans Record Retail Allocation
SpaceX detailed its IPO plans during a Monday night meeting with bankers, with CFO Bret Johnsen emphasizing that retail investors will receive a larger allocation than any IPO in history. The company plans to kick off its roadshow the week of June 8, with participation open to investors across the U.S., UK, EU, Australia, Canada, Japan, and Korea. Lead bookrunners include Morgan Stanley (MS), Goldman Sachs (GS), JPMorgan Chase (JPM), Bank of America (BAC), and Citigroup (C), with founder Elon Musk previously targeting up to 30% retail allocation and a valuation above $2T.
