Market Wrap | US Stocks Slide as Fed Rate Cut Hints Emerge Palantir and Mustang Bio Soar

On July 7, 2025, the U.S. stock market experienced a downturn with the S&P 500 Index falling 0.79%, the Dow Jones Industrial Average declining 0.94%, and the Nasdaq Composite Index dropping 0.92%. This market weakness coincided with reports from Goldman Sachs suggesting that the Federal Reserve may lower policy rates in September. Additionally, a Fed research report indicated a 9% chance of the benchmark rate hitting zero in the mid-term due to current high uncertainty. These developments suggest ongoing caution and potential easing in monetary policy, impacting market sentiment negatively.

The S&P 500 index saw mixed performance across various sectors. The healthcare, discretionary, energy, communication services, materials, and financial sectors underperformed the broader market. Conversely, the utilities sector bucked the trend and posted gains.

Palantir's stock surged by 3.54% today, driven by the company's irreplaceable AI-driven SaaS solutions. These advanced offerings have significantly boosted Palantir's stock value and market influence, making it a standout performer in the tech sector.

Mustang Bio surged over 180%, driven by the FDA granting Orphan Drug Designation for their CAR T-cell therapy MB-101. This designation offers significant benefits, including tax credits and market exclusivity, boosting investor confidence in the company's innovative treatment. LogProstyle rose nearly 108%, as the company's strategic share repurchase program signals strong belief in its undervalued equity. This move is seen as a positive indicator of the company's financial health and future prospects. Skyline Builders plummeted over 87%, as increased construction costs negatively impacted the company's profit margins. This significant drop reflects the challenges faced by the construction industry in managing rising expenses. Top KingWin dropped over 80%, following the termination of the Securities Purchase Agreement. This development has negatively impacted investor confidence, as it involves the unwinding of a significant share offering.

Goldman Sachs has suggested that the Federal Reserve may lower its policy rates in September, coinciding with a study by New York Fed researchers indicating a 9% probability of rates hitting the zero lower bound within the next seven years due to increased uncertainty. Meanwhile, Apple has appealed a €500 million fine imposed by the EU for violating the Digital Markets Act. In another development, Elon Musk has launched a new political party, drawing criticism from U.S. Treasury Secretary Scott Besant. Besant advised Musk to focus on business activities rather than political pursuits, highlighting the potential distractions such involvement might pose to Musk's companies, including Tesla and SpaceX.