Market Wrap | Federal Reserve Holds Rates Amid Market Volatility and Tech Surge

On July 31, 2025, the Federal Reserve's decision to keep interest rates unchanged at 4.25%-4.50% aligned with market expectations, despite internal dissent and political pressure for rate cuts. This decision comes as U.S. treasury traders closely monitor upcoming inflation data to assess future monetary policy moves. September's rate cut expectations have significantly decreased from 80% to 40%. Meanwhile, U.S. stock markets experienced a mixed performance, with the S&P 500 index falling 0.37%, the Dow Jones Industrial Average declining 0.74%, and the Nasdaq Composite index dropping 0.03%.

The market saw a mixed performance across various sectors. The technology, healthcare, energy, materials, real estate, financial, and consumer goods sectors underperformed the S&P 500. Conversely, the utilities and communication services sectors bucked the trend and posted gains.

Microsoft shares rose 3.95% as the tech giant reported quarterly earnings that surpassed analysts' expectations, driven by robust growth in its Intelligent Cloud segment. Meanwhile, Meta's stock surged 11.25% after the company exceeded Wall Street's earnings estimates, fueled by AI-driven efficiency gains in its thriving ad business.

Soligenix shares surged over 134% after the company announced positive results from its Phase 2a proof-of-concept study of SGX945. Meanwhile, Pop Culture Group saw its stock rise nearly 130% following the launch of the Huaya Times project, which diversifies the company into real estate with innovative leasing models targeting young professionals. On the other hand, Erayak Power's stock dropped over 53% due to the announcement of a registered direct offering, which is expected to significantly dilute existing shareholders. Pulmonx's stock also fell over 41% as the company may need to secure additional financing within the next one to two years, which could potentially be unfavorable.

The Federal Reserve decided to maintain the federal funds rate range between 4.25% and 4.50%, marking the fifth consecutive meeting with no rate change, despite pressure from President Trump for a rate cut. Meanwhile, Microsoft's shares surged, making it the second tech giant with a market capitalization exceeding $4 trillion, driven by strong financial results, including a 26% increase in intelligent cloud business revenue. Apple also reported strong earnings with a third fiscal quarter net profit of $23.43 billion, aided by a 13% growth in iPhone revenue. Additionally, Ray Dalio sold his remaining shares in Bridgewater Associates and exited the board, marking a significant shift in the company's leadership dynamics.