Markets Edge Up as Uber Surges on Nvidia Robotaxi Deal and Oil Hovers Above $100

Qualcomm's board of directors approved a new $20 billion stock repurchase program with no expiration date, supplementing approximately $2.1 billion remaining under its prior buyback authorization from November 2024. The company simultaneously raised its quarterly cash dividend from $0.89 to $0.92 per share—a 3.4% increase—effective for payments after March 26, 2026, bringing the annualized payout to $3.68 per share.

The announcement came as Qualcomm's stock had declined roughly 22% year-to-date, reflecting broader pressure in the semiconductor sector. The capital return program is intended to reinforce shareholder value while the company continues diversifying revenue beyond smartphone chips into automotive, PC, and industrial markets. Qualcomm shares rose approximately 1.7% on the day.

The scale of the buyback underscores management's confidence in the company's long-term cash generation. Qualcomm generated $11.2 billion in free cash flow in fiscal 2025, providing substantial capacity to execute both the repurchase program and continued investment in next-generation chip architectures.

Brent crude maintained a price above $100 per barrel on March 17, sitting at approximately $102 as of mid-afternoon, up more than 40% since the outbreak of the Iran conflict on February 28. Prices spiked to nearly $120 in the days immediately following the start of hostilities before retreating to the current range, which analysts attribute to partial demand destruction and strategic petroleum reserve releases coordinated by several nations.

The prolonged disruption to the Strait of Hormuz—through which roughly 20% of global oil supply transits—has rippled through U.S. consumer prices. The national average gasoline price reached $3.79 per gallon, up approximately 30% from a month ago, while U.S. diesel prices topped $5 per gallon for the first time since 2022. Economists noted the surge is widening the economic divide, acting as a disproportionate tax on lower-income households that spend a larger share of income on fuel and goods transported by diesel trucks.

Despite the oil market headwinds, U.S. equities held up relatively well: the S&P 500 added 0.25% to close at 6,716.09, and the Nasdaq Composite gained 0.47% to finish at 22,479.53. The S&P 500's consumer discretionary sector led gains, rising approximately 1%, as travel and leisure names including Expedia, Booking Holdings, Delta, and American Airlines posted strong moves on robust demand outlooks.

HSBC analyst Rajesh Kumar downgraded Eli Lilly to 'Reduce' from 'Hold' and slashed the price target from $1,070 to $850, arguing that consensus total addressable market (TAM) estimates for obesity drugs—widely pegged at over $150 billion by the early 2030s—are too optimistic. HSBC's own model projects the obesity drug market reaching between $80 billion and $120 billion by 2032, based on more conservative patient uptake assumptions and anticipated pricing competition as multiple GLP-1 therapies enter the market.

The downgrade cited three specific concerns: an overstated global TAM, potential early disappointment in demand for Lilly's upcoming oral weight-loss pill Orforglipron expected to launch in the second quarter of 2026, and price cuts in 2026 that HSBC argued reflect competitive pressure rather than Lilly's pricing power. The note described the stock as priced to perfection given the gap between current market expectations and HSBC's more cautious projections.

Eli Lilly shares closed at $930.72, down 5.9%—the stock's sharpest single-day decline in several months. The move contrasted sharply with the broader Wall Street consensus: the average analyst price target for LLY remains around $1,216 per share, reflecting a wide divergence in views about the obesity drug market's ultimate size and Lilly's ability to capture it.