Market Wrap | Federal Reserve's Liquidity Move and Jefferies' S&P 500 Downgrade Spark Market Volatility

On April 15, 2025, the Federal Reserve accepted $88.78 billion from 23 counterparties in fixed-rate reverse repo operations, reflecting liquidity management amidst economic uncertainties. Meanwhile, Jefferies lowered its S&P 500 year-end target from 6000 to 5300 points, citing dimming corporate earnings prospects. These developments contributed to the decline in major US stock indices, with the S&P 500 falling 0.17%, the Dow Jones Industrial Average dropping 0.38%, and the Nasdaq Composite decreasing 0.05%.

Based on the day's market performance, the healthcare, materials, industrial, and consumer staples sectors underperformed the S&P 500. Conversely, the utilities, technology, communication services, real estate, and financial sectors saw gains despite the overall market trend.

Palantir Technologies Inc. shares rose 6.24% after the company secured a major government contract, boosting investor confidence in its long-term growth prospects. Netflix Inc. shares climbed 4.83% as the streaming giant's subscriber growth exceeded expectations, driven by popular new releases and strategic partnerships. Bank of America Corp. shares increased 3.60% following the announcement of increased dividends, which bolstered investor confidence.

Ostin Technology's stock surged by nearly 300%, driven by a robust quarterly earnings report that bolstered investor confidence. Mural Oncology also saw a significant rise, with its stock climbing by over 130% following encouraging results from a drug trial. Meanwhile, Spruce's stock plummeted by nearly 60% as the company faces regulatory scrutiny over potential accounting irregularities. MetaVia's stock price also took a hit, dropping by over 55%.

President Trump has signed an order to investigate national security risks from U.S. reliance on imported critical minerals, which could impact various sectors reliant on these materials. The U.S. major stock indices rebounded quickly after an initial decline, with Nasdaq 100 extending gains to 1%, signaling investor confidence despite ongoing macroeconomic challenges. NVIDIA expects approximately $5.5 billion in expenses related to H20 products for Q1 FY 2026, reflecting significant investment in future product lines. Meanwhile, oil markets saw unexpected inventory increases, with US API crude inventories rising by 2.402 million barrels last week, contrary to expectations, potentially affecting energy stocks.