Market Wrap | Fed's Powell Delays Rate Cuts Amid Strong Labor Market and Inflation

June 24, 2025: The S&P 500, Dow Jones, and Nasdaq indices rose by 1.11%, 1.19%, and 1.43% respectively, as Federal Reserve Chair Powell indicated that the Fed will postpone interest rate cuts due to strong labor markets and high inflation. Meanwhile, Fed's Kashkari highlighted the need for more clarity on tariff impacts despite recent positive inflation data.

In today's market, several sectors outperformed the S&P 500, with the technology, healthcare, communication services, and financial sectors leading the way. Notably, the technology sector demonstrated exceptional performance. Conversely, the consumer staples and energy sectors moved in the opposite direction of the S&P 500.

TSMC shares surged 4.65% as the company continues to benefit from the increasing demand for AI chips, positioning itself as a key player in the semiconductor industry. ASML Holding saw a 4.31% rise, driven by the growing adoption of its innovative EUV technology in semiconductor manufacturing. Broadcom's stock climbed 3.94% following HSBC's upgrade to a Buy rating, citing an upward revision in ASIC revenue estimates. Oracle's shares rose 3.98%, buoyed by renewed investor optimism around its cloud and AI momentum, supported by positive analyst commentary and industry recognition. HSBC Holdings gained 3.04%, reflecting its strong focus on capital return to investors through share buybacks and interim dividends. Abbott Laboratories' stock rose 3.62% after Citigroup increased its target price and issued a Buy rating. Alibaba Group's shares advanced 3.47%, boosted by advancements in AI infrastructure and strategic reorganization efforts.

Nektar Therapeutics shares surged over 156% following the announcement of successful Phase 2b trial results for its atopic dermatitis treatment. This significant milestone has sparked investor optimism, driving the stock price to new heights. OneMedNet experienced a substantial rise of over 100%, attributed to the company's successful fundraising efforts. The biotech firm raised $3.7 million to bolster its working capital and reduce liabilities, a move that has been well-received by the market. Upexi shares plummeted over 60% as investors filed to sell a large number of shares, causing a sharp decline in the stock price. This sudden sell-off has raised concerns among investors about the company's future prospects. Impact BioMedical shares dropped over 47%.

Federal Reserve officials, including Michael Barr and Neel Kashkari, have expressed concerns about the impact of tariffs on inflation, suggesting a cautious approach to interest rate adjustments. Barr anticipates tariffs will raise inflation, while Kashkari emphasizes the need to understand their effects before altering policies. Fed Chairman Jerome Powell remarked that a strong labor market and higher inflation levels justify delaying rate cuts. Meanwhile, U.S. Treasury Secretary is hopeful for progress on the debt ceiling issue within 48 hours, which could influence market stability. Additionally, Boeing and the FAA were criticized for safety oversight failures in a previous incident.