Market Wrap | US Stocks Slide as ECB Worries Over Stablecoins Grow

On July 29, 2025, the S&P 500 Index fell by 0.30%, the Dow Jones Industrial Average declined by 0.46%, and the Nasdaq Composite Index dropped by 0.38%. European Central Bank officials have expressed concerns over the rise of USD-pegged stablecoins, fearing that "dollarization" in the eurozone could undermine the ECB's control over monetary policy. Meanwhile, the Federal Reserve is expected to maintain current interest rates, with a 96.9% probability of holding steady, as market anticipation suggests potential rate cuts in September.

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

Philip Morris shares rose 3.16% today, driven by UBS raising its price target for the company. The Swiss bank cited impressive growth in smoke-free product margins as the reason behind the upgrade.

Durect shares surged over 240% after Bausch Health announced a definitive agreement to acquire the company, significantly boosting investor confidence. ScanTech AI's stock rose nearly 78% as the company's TIPS contract opens access to a $100 million government procurement market, potentially accelerating sales cycles and revenue growth. Pheton Holdings' stock plummeted over 94% due to significant financial challenges leading to a sharp revenue decline. Global Engine Group's shares dropped over 62% amid regulatory scrutiny over its accounting practices.

Nvidia is increasing its purchase of H20 chips from TSMC due to stronger-than-expected demand in the Chinese market, indicating potential growth in the chip industry. Boeing's CEO expressed confidence in achieving profitability in Q4, supported by the delivery of 150 commercial planes in the second quarter and surpassing revenue expectations with $227.5 billion. Novo Nordisk has announced the appointment of Maziar Mike Doustdar as CEO and plans to expand direct consumer sales of Wegovy, while reporting an 18% sales increase in the first half of 2025. The Federal Reserve is expected to keep interest rates unchanged in July, with a 96.9% probability, amid rising calls for rate cuts and market pressure on the dollar and US stocks.