Market Wrap | US Stocks Surge Despite Fed's Rate Hike Hesitation

On June 26, 2025, the U.S. stock market saw significant gains with the S&P 500 rising 0.80%, the Dow Jones Industrial Average increasing 0.94%, and the Nasdaq Composite surging 0.97%. This bullish sentiment comes amidst Federal Reserve officials, including Chairman Powell, expressing reluctance to cut interest rates in July, citing the need to monitor inflation trends influenced by tariffs. Additionally, Treasury Secretary Besent extended the "debt issuance suspension period" to avoid surpassing the federal debt limit, indicating potential fiscal uncertainty.

Today, several sectors outperformed the S&P 500, including Utilities, Consumer Discretionary, Energy, Communication Services, Materials, and Industrials. Notably, the Energy sector showed exceptional performance. Conversely, Consumer Staples and Real Estate sectors moved in the opposite direction of the S&P 500.

Cyngn's stock surged over 171%, driven by its strategic partnership with Nvidia, which has significantly boosted investor confidence in the company's autonomous vehicle technology. Ascent Solar Technologies also saw a substantial rise, with its stock climbing nearly 144%. Ostin Technology experienced a sharp decline, with its stock dropping over 93%. Globavend Holdings' stock price plummeted over 74% following the announcement of a public offering priced below market expectations.

The Federal Reserve is likely to maintain interest rates unchanged in July, with a probability of 79.3%, while the chances of a rate cut are lower. Several Federal Reserve officials have expressed a preference to wait a few more months before deciding on a rate cut, as they monitor the impact of tariffs on inflation. Meanwhile, Microsoft is experiencing success with its investment in OpenAI, leading analysts to raise its target stock price due to growth in its AI sector. Additionally, Tesla is undergoing management changes, as two executives, including one responsible for North American and European sales, have departed the company amid a competitive market.