Market Wrap | S&P 500 Rises as Fed Rate Hike Fears Grow Tesla Stock Surges

On July 10, 2025, the S&P 500 Index rose by 0.27%, the Dow Jones Industrial Average increased by 0.43%, and the Nasdaq Composite Index gained 0.09%. JPMorgan CEO Jamie Dimon suggested that the likelihood of a Federal Reserve rate hike is higher than market expectations, estimating a probability of 40% to 50% compared to the market's 20%. Additionally, Fed Governor Christopher Waller advocated for continued balance sheet reduction and increasing the proportion of short-term assets.

Today, the public utilities sector, healthcare industry, energy sector, materials industry, industrial sector, real estate industry, financial sector, and consumer goods industry outperformed the S&P 500. Notably, the public utilities sector and non-essential consumer goods industry showed exceptional performance. Conversely, the technology sector and communication services sector moved in the opposite direction of the S&P 500.

Tesla's stock surged by 4.73% today, driven by the company's recent sales and delivery figures that exceeded market expectations. This positive performance suggests a potential turnaround for the electric vehicle giant, as investors respond favorably to the improved outlook.

Today, the U.S. stock market saw significant movements across several key companies. Above Food surged over 324%, showcasing substantial growth potential for investors. Meanwhile, DallasNews rose nearly 209%, driven by Hearst's acquisition at a 219% premium, creating significant shareholder value. On the downside, Concorde's stock plummeted over 79%, with a trading halt due to significant volatility, indicating instability. Mereo Biopharma also faced a decline of over 42%, as Needham's analyst lowered the price target from $7 to $5 amid ongoing studies.

Morgan Stanley CEO Jamie Dimon suggested a higher probability of Fed interest rate hikes than market expectations, estimating a likelihood of 40-50% compared to the market's 20%. Fed Governor Waller supports further balance sheet reduction, focusing on increasing short-term assets without significant overall shrinkage. Meanwhile, President Trump continues to pressure Fed Chair Powell for rate cuts, criticizing current policies as excessively costly. Additionally, Tesla's CEO Elon Musk announced Grok's imminent integration into Tesla vehicles.