Market Wrap | US Stocks Rally on Fed Rate Cut Hints and Sector Surge

On June 23, 2025, the U.S. stock market saw a broad rally with the S&P 500 Index rising 0.96%, the Dow Jones Industrial Average gaining 0.89%, and the Nasdaq Composite Index climbing 0.94%. This bullish sentiment was bolstered by comments from Federal Reserve Vice Chair Michelle Bowman, who expressed support for a potential rate cut in July. Bowman emphasized the need to reassess leverage requirements that could unexpectedly impact the $29 trillion U.S. Treasury market. Additionally, Fed Governor Goolsbee noted that existing tariffs have not significantly driven inflation, suggesting room for potential rate cuts if tariff impacts remain minimal.

Based on the current market performance, several sectors outperformed the S&P 500, including utilities, technology, communication services, materials, industrials, real estate, financials, and consumer staples. Notably, the non-essential consumer goods and real estate sectors showed exceptional performance. Conversely, the energy sector moved in the opposite direction of the S&P 500.

GE Aerospace shares rose 3.53% as the company reported strong demand for next-generation engines and expanded its digital service offerings, driving higher recurring revenue. ASML Holding shares rose 3.07% after the company announced transactions under its current share buyback program, signaling confidence in its financial health. Tesla shares surged 8.23% following the launch of its highly anticipated robotaxi service in Austin, Texas. Accenture shares rose 3.37% as the company expanded its operating margin by 40 basis points and achieved 12% EPS growth.

Impact BioMedical shares surged over 344%, driven by a strategic merger with Dr. Ashleys Limited, which is expected to enhance market reach and accelerate pharmaceutical development. Cidara Therapeutics saw its stock rise nearly 114% after its investigational drug CD388 showed positive results in preventing influenza in a Phase 2b trial. Maase shares dropped over 95%, while Compass Pathways stock fell nearly 49% due to disappointing phase 3 trial results for its depression therapy.

Tesla's stock surged by 8.23% following the launch of its Robotaxi service in Texas, contributing to a significant trading volume of $648.05 billion. This development indicates a positive market response to Tesla's advancements in autonomous vehicle technology. Meanwhile, the U.S. bond market saw declines in yields across various maturities, with 10-year Treasury yields falling by 2.76 basis points, signifying increased investor interest in safer assets. Additionally, Federal Reserve Vice Chair Bowman expressed support for a potential interest rate cut in July, suggesting a shift in monetary policy amidst moderated inflation. These factors collectively influence market sentiment and investor strategies in the U.S. stock market.