Market Wrap | Federal Reserve Caution Drives Market Volatility as Tech and Healthcare Shine

On July 23, 2025, U.S. Treasury yields fell as investors remained cautious ahead of the Federal Reserve's upcoming interest rate decision, with expectations that rates will stay unchanged. Meanwhile, the Federal Reserve's reverse repurchase agreements usage decreased slightly to $1896.32 billion, indicating stable liquidity conditions in the financial market. In the stock market, the S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 1.14%, and the Nasdaq Composite Index gained 0.61%.

In today's market, the healthcare, energy, and industrial sectors outperformed the S&P 500. Specifically, the healthcare sector, energy sector, and industrial sector demonstrated strong performance. Conversely, the utilities sector moved in the opposite direction of the S&P 500.

Palantir Technologies Inc. shares rose 3.73% as the company's accelerating revenue growth is driven by its strong momentum in the U.S. commercial and government sectors. Toyota Motor Corporation shares surged 13.64% following a reduction in tariffs on Japanese vehicles, boosting the automaker's stock. Novo Nordisk A/S shares climbed 4.87% as the company's strong brand and R&D create opportunities for long-term investors. AstraZeneca PLC shares rose 3.58% after the pharmaceutical giant announced a $50 billion investment in the U.S. by 2030, strengthening its manufacturing and research capabilities.

Abivax shares surged over 586%, driven by the positive Phase 3 trial results for obefazimod, which significantly boosted investor confidence. Aureus Greenway also saw a substantial rise, with shares up nearly 208% after securing $26 million through private placement, enhancing operational capabilities and growth opportunities. Skyline Builders, however, experienced a significant drop, with shares falling over 54% as moving average crossings indicate a likely prolonged decline. INVO Fertility shares also declined, dropping nearly 25% as the company faces financial hurdles with deepening net losses and negative cash flow.

The Federal Reserve's overnight reverse repurchase agreement usage decreased to $1896.32 billion, indicating liquidity dynamics in the market. Investor caution is evident ahead of the imminent Federal Reserve meeting, with notable decreases in U.S. Treasury yields, including a drop in the 10-year yield to 4.342%, influenced by expectations that interest rates will remain unchanged. OpenAI CEO highlighted significant risks posed by AI in financial sectors due to its ability to bypass most authentication methods, potentially leading to increased fraud. Amidst these developments, Microsoft's server software faced large-scale cyber espionage, underscoring ongoing cybersecurity challenges that could impact market sentiment and corporate security strategies.