The Swiss Market Index closed down 1.55% at 14,047, extending a second consecutive day of losses as Novartis delivered the largest single-day decline in the company's history.
Novartis shares fell 10.9% after its product candidate Del-desiran, intended to treat myotonic dystrophy, missed the primary endpoint of a Phase III trial. Vontobel called it a significant setback for the pipeline. The latest disappointment followed Monday's 3.2% drop after earlier trial data for Pelacarsen, another drug candidate, proved underwhelming.
Within the SMI, seven stocks rose against thirteen that fell. Nestlé (+2.1%) and Roche (-0.9%) moved in opposite directions, while ABB (+2.6%), Swisscom (+2.4%), Partners Group (+0.8%), and UBS (+1.4%) were among the gainers. UBS shares surged above 45 francs, marking their highest level in nearly 19 years.
Several companies published new targets or received analyst upgrades. Sandoz unveiled growth goals through 2030, pledging to expand its biosimilars business. Oerlikon (+2.1%) set a medium-term target of more than 2 billion francs in revenue and aadjusted EBITDA margin above 20% by 2030 — figures the UBS considered slightly above consensus but realistic. Ascom (+5.1%) secured a seven-year Norwegian contract worth approximately 80 million francs, which ZKB called a major success. SoftwareOne (+3.4%) rose on a notable price-target increase from Kepler Cheuvreux, which saw a turnaround in progress. Galderma (+2.8%) and Gurit (+3.5%) also benefited from positive analyst commentary.
Burkhalter (-8.4%) gave back most of Monday's gains, and DocMorris (-6.7%) dropped below 10 francs. Semiconductor suppliers VAT, Inficon, and Comet weakened early before recovering.
US markets opened weak after the extended weekend. The Dow Jones fell 1.2% to 52,773, the S&P 500 lost 0.4% to 7,686, and the Nasdaq 100 slipped 0.2% to 29,488. Rising oil prices — Brent crude traded above $98 a barrel, nearing the psychological $100 mark — added to concerns about further rate hikes. The European Central Bank is widely expected to adjust rates again on Thursday.
Oil companies Chevron, ExxonMobil, and ConocoPhillips rose as prices climbed, with disruptions to Saudi production near the Yemen border after Houthi attacks providing further support. In chips, Intel, ARM, and Broadcom gained 2% or more, while Qualcomm jumped 5% on a partnership with Amazon to supply custom data-center chips. Bloom Energy surged 8.4% ahead of its inclusion in the S&P 500; Boston Scientific fell 3% after a cyberattack.
Dyne Therapeutics plummeted 22%, caught in Novartis's negative spillover as the two firms share comparable drug candidates. Anastasia Amoroso of Partners Group told Bloomberg TV that markets were likely in a "digestive phase" as central banks worldwide adjust monetary policy, adding that equities could surrender part of their recent gains or pause for consolidation.
