Market Wrap | US Stocks Rise as Fed Keeps Rates Steady Amid Economic Growth

On July 9, 2025, the U.S. stock market saw gains across major indices, with the S&P 500 rising 0.61%, the Dow Jones Industrial Average up 0.49%, and the Nasdaq Composite increasing 0.94%. This positive market sentiment comes as the Federal Reserve's meeting minutes indicate a consensus to keep the federal funds rate target range at 4.25%-4.5%, citing continued economic growth, a robust labor market, and slightly elevated inflation. Despite reduced economic uncertainty, risks persist. Meanwhile, long-term U.S. Treasury yields continue to climb, driven by concerns over fiscal deficits stemming from a new tax and spending law, which could influence future interest rates.

Based on the day's market performance, the utilities and industrial sectors outperformed the S&P 500. Conversely, the consumer staples, energy, and real estate sectors moved in the opposite direction of the S&P 500.

Alibaba Group shares dropped 3.85% today. Morgan Stanley expects the company's consolidated EBITA to fall 16% year-over-year in the fiscal first quarter.

SU Group shares surged over 170%, driven by securing its largest-ever contract worth US$11.3 million for a major hospital expansion project in Hong Kong, significantly boosting its growth potential. Evoke Pharma rose nearly 163%, following the receipt of a Notice of Allowance for a new patent, enhancing market exclusivity for its lead product, GIMOTI. Meanwhile, Park Ha Biological shares dropped over 63%, as analysts highlighted challenges in maintaining consistent growth and profitability, leading to a decline in investor confidence. RxSight shares fell over 37%, due to a significantly lowered revenue forecast caused by slower adoption of its technology.

The Federal Reserve's June meeting minutes indicated a consensus to maintain the federal funds rate target range at 4.25% to 4.5%, citing ongoing economic expansion and low unemployment, despite persistent inflation and high economic uncertainty. Nvidia reached a historic milestone with a market capitalization of $4 trillion, driven by its leadership in AI and increased demand for AI chips. The U.S. government resumed supplying weapons to Ukraine, including artillery ammunition and precision-guided rockets, after a brief suspension. Meanwhile, market concerns over fiscal deficit expansion led to a rise in long-term U.S. Treasury yields, influenced by the newly signed "Big and Beautiful" tax and spending law.