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Market Update for Week of November 14, 2025
The Week at a Glance:
Strong Earnings, Rising Volatility: Q3 earnings are outperforming expectations, but volatility is rising amid IT and Communications concerns, heavy AI capex pressures, sector rotation favoring healthcare, fading odds of a near-term Fed rate cut, and busy debt markets despite wider credit spreads
The Longest Government Shutdown Ends: Broader equities inched downwards on Thursday after the news as investors anticipate delays in the release of key economic data, potentially impacting December rate cut decisions
Biotech Markets Show Continued Strength: The NBI and NYSE Pharma indices rose 4.2% and 6.3%, respectively, supported by strong follow-on activity totaling $1.3B across 15 raises, along with two large M&A transactions
Merck Bolsters Its Respiratory Portfolio: Merck announced a $9.2B acquisition of Cidara Therapeutics, a Company developing a differentiated antiviral for influenza, making this its second major respiratory-focused deal this year following its $10.0B buyout of Verona Pharma in July
Longtime FDA Regulator Named as New CDER Director: Richard Pazdur, who spent 26 years at the FDA and served as the founding director of the Oncology Center of Excellence, was appointed the new CDER director