Market Wrap | Fed Officials Warn of Economic Slowdown as Tech Stocks Surge

May 14, 2025 (Wednesday), the S&P 500 Index rose 0.10%, the Dow Jones Industrial Average fell 0.21%, and the Nasdaq Composite Index gained 0.72%. U.S. Federal Reserve Vice Chair Philip Jefferson expressed concerns about potential economic growth slowdown and rising inflation due to tariffs and related uncertainties, emphasizing the need for monetary policy readiness to respond. Meanwhile, Chicago Fed President Austan Goolsbee highlighted the importance of the Federal Reserve maintaining stability amid market and policy fluctuations, noting stable economic data despite some inflationary lag.

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

Nvidia's stock surged by 4.16% today, driven by optimism surrounding new partnerships and trade deals. Alphabet's shares rose by 3.66% as the company reported a 12% year-over-year increase in Q1 revenue, with Google Cloud leading the way with a 28% growth. Tesla's stock climbed by 4.07%, boosted by easing U.S.-China trade tensions. Alphabet's Class C shares also rose by 3.68%, following the announcement of a breakthrough in AI technology that enhances search capabilities and user experience.

Incannex Healthcare surged over 720%, securing a patent for its innovative cannabinoid-based treatment, which enhances its competitive advantage and future revenue potential. Klotho Neurosciences rose nearly 123%, driven by positive results from its clinical trial for Alzheimer's treatment. Meanwhile, High-Trend dropped over 72%, facing security vulnerabilities due to undocumented AT commands on Android devices. Accelerate's stock price fell over 61%, following disappointing quarterly earnings results.

San Francisco Federal Reserve President Daly emphasized that the Federal Reserve's monetary policy is well-positioned to respond to economic developments, suggesting potential adjustments based on changing economic conditions. Amazon confirmed layoffs impacting small teams within its devices and services unit, including Kindle and Alexa, amid broader tech sector adjustments. Qatar Airways signed a significant agreement with GE Aviation for over 400 engines, marking its largest purchase of wide-body aircraft engines in the company's history. The U.S. State Department approved a $225 million sale of AIM-120C-8 advanced medium-range air-to-air missiles to Turkey, according to the Pentagon.