Eli Lilly Bets Billions on AI Drugs From China, Private Credit Panic Grows

This episode of The Rundown covers a turbulent market week driven by the ongoing war with Iran, alongside growing concerns in private credit, Eli Lilly's major AI drug partnership, select stock movements, and a consumer price update.

Market Selloff Amid War Escalation

Stocks fell sharply last week, with the S&P 500 down 2.1% and the Nasdaq dropping 3.2%, marking five straight weeks of declines—the first since 2022. Year-to-date, the S&P 500 is off 7% and the Nasdaq nearly 10%. The primary driver is the fifth week of conflict with Iran, including a closed Strait of Hormuz, pushing Brent crude above $115 per barrel—a record 55% monthly surge. A former White House advisor interviewed on the show argues markets underprice risks from energy supply disruptions.

Escalation continues: the Pentagon considers 10,000 more ground troops, and President Trump threatened on Truth Social to destroy Iran's oil infrastructure unless the strait reopens. Investors face few hedges—gold is down 10% since the war began, and bond yields rise on inflation fears from higher oil, keeping rates elevated longer. Energy stocks and cash remain the main refuges, with choppy trading expected in a short week (four days, closed Good Friday).