Market Wrap | S&P 500 Rises Amid Fed Rate Cut Bets and Sector Shifts

On July 2, 2025, the S&P 500 index rose by 0.47%, the Dow Jones Industrial Average fell by 0.02%, and the Nasdaq Composite index increased by 0.94%. Federal Reserve's Barkin stated there is no urgency to adjust policy, while traders are betting on at least two Fed rate cuts by the end of 2025. This suggests potential market optimism for monetary easing, aligning with today's mixed market performance. Additionally, the unexpected rise in May's job openings highlights a robust labor market, contributing to current bond market volatility.

Based on the current market performance, several sectors outperformed the S&P 500, including the technology, non-essential consumer goods, energy, and materials sectors. Notably, the technology, energy, and materials sectors demonstrated exceptional performance. Conversely, the utilities, healthcare, communication services, and financial sectors moved in the opposite direction of the S&P 500.

Today, TSMC shares rose by 3.97%, driven by its dominant position in the foundry market and the anticipated benefits from the AI boom. Oracle's stock surged by 5.03%, bolstered by its robust cloud infrastructure and AI growth. Meanwhile, Tesla's shares climbed by 4.97%, fueled by strategic initiatives and strong financial indicators that instill optimism for future growth.

Sonnet BioTherapeutics saw a remarkable surge, with its stock rising over 242%. This significant increase was driven by analysts projecting nearly 53% revenue growth, suggesting that the company may be undervalued at current levels. Mogo Inc. experienced a substantial rise of 112.40%, fueled by the company's plan to allocate $50 million to Bitcoin, which has driven a significant stock surge. Centene's stock dropped by 40.37% after the company withdrew its 2025 financial outlook due to rising costs and weaker enrollments. Mustang Bio's stock price declined by 39.51%, reflecting a significant decrease in share value.

Datadog will replace Juniper Networks in the S&P 500 index, indicating potential shifts in market dynamics and investor focus. Federal Reserve's Barkin stated there is no urgency to adjust policy, suggesting stability in interest rates and potential implications for economic growth and inflation. Microsoft plans layoffs of up to 9,000 employees, reflecting strategic adjustments amid economic pressures and impacting investor sentiment. Tesla's second-quarter vehicle deliveries fell short of market expectations, which may influence stock performance and investor confidence in future growth prospects.