Market Wrap | US Stocks Slide Amid Fed Tariff Concerns and Sector Volatility

On May 6, 2025, the U.S. stock market experienced a downturn with the S&P 500 Index falling 0.77%, the Dow Jones Industrial Average declining 0.95%, and the Nasdaq Composite Index dropping 0.87%. This market volatility comes as the Federal Reserve continues to evaluate the impacts of tariffs on the economy, suggesting a cautious approach to immediate policy changes. The Fed's significant use of the overnight reverse repurchase agreement indicates efforts to manage liquidity amidst market fluctuations. With tariffs potentially affecting economic growth and inflation, a future policy response may be necessary if the economic situation deteriorates.

The market saw a mixed performance across various sectors. The technology, healthcare, discretionary consumer goods, and industrial sectors underperformed the S&P 500 index. Conversely, the utilities sector bucked the trend and posted gains.

Today, several notable companies experienced significant stock price movements. Palantir Technologies Inc. saw its stock drop by 12.05% amid regulatory scrutiny over data privacy concerns. Eli Lilly and Company's stock fell by 5.64% due to regulatory concerns surrounding drug pricing. AbbVie Inc. also faced a decline of 4.55% as it grapples with safety concerns over its new drug. Novo Nordisk A/S's stock dropped by 4.09%, reflecting the natural risk involved when a stock tests a support level.

NetClass Technology surged over 162% as the company launched a new AI-driven educational platform, significantly enhancing the digital learning experience. FOXO Technologies rose nearly 153% with plans to expand its Myrtle Recovery Centers, aiming to capitalize on rising demand. Nucana dropped over 63% after announcing disappointing clinical trial results for its lead drug, NUC-7738. Bioaffinity Technologies fell over 44% following a $3.25 million offering, leading to share dilution.

The Reserve Bank of New Zealand (RBNZ) is actively reviewing capital ratios and settings, which could have implications for international banking standards. AMD has projected its fourth-quarter adjusted gross margin at approximately 54%, excluding charges, potentially influencing market expectations and investor sentiments. The Federal Reserve has accepted $100 million in bids at its overnight repo operation, reflecting the ongoing liquidity management in the financial system. The US Treasury is planning to auction $60 billion in four-month bills, signaling government funding strategies and potential impacts on bond markets.