Mag 7 evaporates 2 trillion | Rewire News Morning Briefing

Title: Mag 7 Evaporates $2 Trillion｜Rewire News Morning Report

Author: Rhythm BlockBeats

Source:

Reprinted: Mars Finance

The frontlines between Iran and Ukraine are crossing; in the same week that Russia equipped Iran with Starlink drones, Ukraine destroyed 40% of Russia’s oil export capacity. The capital markets have finally understood: this is not two isolated conflicts, but a merging global risk network.

1｜The Convergence of Two Wars: Ukraine Attacks Russian Oil Ports, Russia Supplies Iran with Starlink

Ukraine launched consecutive drone strikes on Russia’s three major oil export ports this week. On March 23, Primorsky; on the 25th, Ust-Luga; and on the 26th, the Kirishi refinery. Reuters calculated that approximately 2 million barrels per day of export capacity have gone offline, accounting for 40% of Russia’s total export capacity, marking “the most severe oil supply disruption in modern Russian history.”

In the same week, Fortune reported that Russia is providing Iran with upgraded Shahed drones, which include an AI computing platform, jet engines, Starlink communication capabilities, and anti-jamming devices. Western intelligence indicates that Russia is also providing Iran with real-time satellite positioning of U.S. military assets. On the other side, Ukraine has signed a security agreement with Saudi Arabia to share anti-drone technology, and Zelensky secretly visited the UAE and Qatar.

Pittsburgh University political science professor Spaniel said, “We are not yet at a true world war,” but the combatants, weapon supply chains, and intelligence networks of the two conflicts have already intersected. Washington is also considering reallocating some of its military aid from Ukraine to the Middle East. (Continuation of yesterday’s report)

(Source: Fortune / Reuters / Moscow Times / FPRI / Time)

2｜Mag 7 Evaporates Over $2 Trillion, Market Prices in Rate Hike for the First Time This Year

The Magnificent 7 has cumulatively lost over $2 trillion in market value from its peak. Microsoft has fallen 32% since its high last October, marking the worst start to a year in the company’s history. Meta is down 25%, Alphabet down 15%, and Nvidia and Amazon have turned negative for the year. The S&P 500 has declined for five consecutive weeks, marking its longest losing streak since 2022.

The futures market has experienced a key expectation reversal. Traders have pushed the probability of a rate hike this year to 52%, breaking the 50% threshold for the first time. The Atlanta Fed’s tracker shows a 19.8% chance of a 25 basis point increase. The Federal Reserve held rates steady at the March meeting, but Powell expressed “concern” about inflation progress. Global forecasting agencies have raised CPI expectations to 4.2%, well above the Fed’s 2.7% forecast. EY-Parthenon increased the probability of a U.S. recession to 40%.

Institutional funds are shifting from technology growth stocks to energy, defense, and domestic manufacturing. Over the past three years, Mag 7 stocks have risen 107%, 67%, and 25%, respectively, but now all seven are down for the year. The issue isn’t just oil prices; it’s that $650 billion in AI capital expenditure has become a burden during the rate hike cycle.

(Source: Fortune / CNBC / Yahoo Finance / EY-Parthenon / Atlanta Fed)

3｜Anthropic Warns Government: Mythos Model Makes Large-Scale Cyber Attacks “More Likely”

Anthropic is privately warning U.S. officials that its upcoming “Mythos” model makes large-scale cyberattacks “more likely to occur” in 2026. Previously, the company accidentally leaked information about the model due to a CMS system failure, then confirmed that Mythos is “the most powerful model to date,” representing “a leap in capability.”

Axios reported that the model “far exceeds any other AI in cyber capabilities,” allowing agents to “penetrate enterprise, government, and municipal systems with astonishing precision.” A Dark Reading survey shows that 48% of cybersecurity professionals rank agent AI as the top attack vector for 2026, surpassing deepfakes and all other threats. Cybersecurity stocks fell sharply, with Evercore commenting on the situation.

Quantum Bit also reported that Claude discovered a 20-year-old system vulnerability within 90 minutes. These two incidents point to the same inflection point: AI’s offensive capabilities are growing faster than defensive ones. Leading labs are no longer just selling products; they are redefining who can breach whom.

(Source: Axios / Fortune / CNBC / Evercore / Quantum Bit)

4｜Eli Lilly Bets $2.75 Billion on AI-Driven Drug Development, Rewriting Traditional R&D Timelines

Eli Lilly signed a $2.75 billion AI drug development agreement with Hong Kong-based Insilico Medicine, prepaying $115 million for exclusive global development and commercialization rights. Insilico has developed 28 drugs using generative AI, nearly half of which have entered clinical trials. The collaboration, starting in 2023, aims to compress the cycle from target discovery to new drug application from years to months.

This is the largest single AI drug development deal by a major pharmaceutical company. Previously, AI drug deals mostly involved research collaborations and milestone payments; Eli Lilly directly acquired commercialization rights, effectively valuing AI drug pipelines with traditional pharma valuation logic. STAT News pointed out that Insilico’s core strength lies in using AI for both target discovery and molecular design, parallelizing the most time-consuming steps. When AI becomes not just an auxiliary tool but the core of the pipeline, the valuation logic of the pharmaceutical industry may be fundamentally rewritten.

(Source: CNBC / Bloomberg / STAT News)

Also worth noting ↓

The CLARITY Act has reached a compromise on stablecoin yields, facing headwinds for DeFi tokens. Senators Tillis and Alsobrooks reached a principled agreement: passive holdings’ yields are banned, but activity rewards are retained. Protocols like Uniswap, Aave, and dYdX may face restrictions. A bank committee review is scheduled for late April. Legislation redefines stablecoins from speculative tools to payment tools, and DeFi yield models are facing structural adjustments. (Source: CoinDesk / Congress.gov)

Elon Musk warns that U.S. chip manufacturing capacity will soon surpass power supply, while China does not face this issue. During a discussion with BlackRock CEO Fink at Davos, Musk said the fundamental limiting factor for AI deployment is electricity, as chip capacity is growing exponentially but power supply cannot keep up. The bottleneck is shifting from chips to energy, and the supply chain to the power grid in the AI arms race. (Source: Fortune)

Southeast Asia’s stablecoin payments are becoming “invisible,” with a surge in crypto card services. Users no longer directly perceive crypto assets, as stablecoins are embedded into daily payment transactions. This aligns with the direction of the CLARITY Act, which positions stablecoins as payment tools, signaling a shift from speculation to infrastructure in both legislation and product development. (Source: CoinDesk)

Cambridge University’s new memristor chip reduces AI switching current by a million times. New materials address the energy consumption and precision bottlenecks of traditional memristors, potentially transforming AI inference energy efficiency. Still in the experimental stage, but this echoes Musk’s point that “power is the limiting factor.” (Source: Tom’s Hardware)

Trump’s AI agenda has become a standalone issue in the midterm elections for the first time. A new political group has been formed specifically to promote AI policies in the 2026 midterms. AI governance is transitioning from executive orders to electoral politics. (Source: The New York Times)