Market Wrap | S&P 500 Drops 084% as Fed Discusses Leverage Ratio Revisions

June 17, 2025, the S&P 500 Index fell 0.84%, the Dow Jones Industrial Average dropped 0.70%, and the Nasdaq Composite Index declined 0.91%. The Federal Reserve plans to discuss proposed revisions to the supplementary leverage ratio standards, which could impact financial institutions' capital requirements. Additionally, the probability of a rate cut in July remains low at 14.5%, signaling continued caution in monetary policy amidst current economic conditions.

The S&P 500 index saw mixed performance across various sectors. The healthcare, communication services, materials, and consumer staples sectors underperformed the broader market. Conversely, the energy sector bucked the trend and posted gains.

T-Mobile US shares dropped 4.14% following SoftBank's decision to sell a significant portion of its stakes in the company. Novo Nordisk shares fell 3.48% as Eli Lilly's strategic announcement about its Zepbound weight-loss drug increased competitive concerns for Novo Nordisk. Tesla shares declined 3.88% due to margin challenges stemming from aggressive financing promotions that failed to revive demand. AstraZeneca shares dropped 3.51% as the company faces anticipated headwinds due to the Medicare Part D redesign in the US, potentially impacting revenue.

CERo Therapeutics surged 188.73% after the FDA granted Orphan Drug Designation for its AML drug CER-1236. Acurx Pharmaceuticals rose 167.24% as it advances its lead antibiotic candidate, ibezapolstat, into Phase 3 trials for C. difficile infection. Planet Green Holdings Corp dropped 66.59% following a downgrade to a Strong Sell candidate due to negative technical signals. Stardust Power fell 52.64% as investors sold shares due to panic and margin-related pressure in a low-liquidity environment.

The Federal Reserve is set to discuss proposed revisions to the supplementary leverage ratio standards in an upcoming open meeting. Additionally, the probability of a rate cut by the Fed in July is reported at 14.5%, with higher probabilities for rate cuts by the end of the year. Meanwhile, the use of the Fed's overnight reverse repurchase agreements reached $1689.39 billion recently, indicating active monetary management. In Europe, ECB board member Villeroy suggested incorporating euro appreciation into monetary policy decisions, highlighting the ECB's readiness to act swiftly if necessary to maintain inflation targets.