Market Wrap | US Stocks Mixed as Fed Cautious on Policy and Debt Ceiling Looms

On May 9, 2025, the U.S. stock market saw mixed performance with the S&P 500 index falling 0.07%, the Dow Jones Industrial Average declining 0.29%, and the Nasdaq Composite remaining unchanged. This comes as Fed's Hammack suggested that the FOMC should maintain a cautious stance on monetary policy, reflecting economic resilience. Meanwhile, U.S. Treasury Secretary expressed concerns about the debt ceiling measures potentially running out by August, which could impact fiscal stability and market sentiment.

In today's market, several key sectors underperformed the S&P 500, including the technology, healthcare, consumer staples, and communication services sectors. Conversely, the utilities, consumer discretionary, energy, materials, industrials, and real estate sectors bucked the trend and saw gains.

Tesla shares rose 4.72% as investors cheered the potential benefits of a U.K. trade deal that could lower tariffs for the electric vehicle maker. The optimism surrounding the trade agreement has bolstered investor confidence in Tesla's prospects in the European market.

Next Technology shares surged over 661%, driven by a significant upgrade in profit guidance following robust Q1 sales growth. Abits Group also saw a substantial rise of 260.94%, with analysts predicting an additional 80.06% increase over the next three months, suggesting a strong buying opportunity. Meanwhile, NuCana's stock dropped by 59.18% after the company announced the suspension of patient enrollment in a pancreatic cancer trial. Super League Enterprise's stock fell by 53.90% following the announcement of a public offering.

The US Commerce Secretary has initiated a national security investigation into imports of commercial aircraft, jet engines, and parts, which could impact major aerospace companies and their stock prices. Fed's Hammack commented on the resilience of the US economy and the uncertainty surrounding future direction, influencing investor sentiment in the stock market. United Airlines shares dropped 2.9% due to FAA considerations of a Newark pullback, affecting airline industry stocks. Disney reported a strong Q2 performance with a 20% year-on-year increase in adjusted EPS, potentially boosting investor confidence in media and entertainment stocks.