Market Wrap | US Stocks Surge as Fed Signals Rate Cuts

On August 4, 2025, the U.S. stock market saw significant gains with the S&P 500 rising 1.47%, the Dow Jones Industrial Average increasing 1.34%, and the Nasdaq Composite surging 1.95%. This bullish sentiment comes as Federal Reserve projections indicate multiple interest rate cuts this year. Mary Daly, a Federal Reserve official, suggested that two cuts would be appropriate but expressed caution about repeating the July decision. Meanwhile, Goldman Sachs forecasts three consecutive 25 basis point cuts starting in September, with the potential for a 50 basis point cut if unemployment rates rise.

The market saw a mixed performance across various sectors. The Utilities, Technology, and Communication Services sectors outperformed the S&P 500, with the Technology sector leading the way. Conversely, the Energy sector moved in the opposite direction of the S&P 500.

Nvidia shares rose 3.62% today, driven by the relaxation of the US export ban on key H20 chips to China, which has significantly boosted the company's prospects. Palantir Technologies saw a 4.14% increase after announcing a new government contract, enhancing investor confidence in its future growth. Meta Platforms Inc. rose 3.51% following the launch of new AI tools aimed at improving advertising efficiency. Broadcom Inc. shares climbed 3.15% due to its strategic partnerships with major tech firms, which are expected to bolster its market presence and potential revenue growth. Alphabet Inc. Class A shares rose 3.12%, supported by Google's strong quarterly earnings report. Oracle Corporation shares rose 3.32%, driven by its strategic partnerships and cloud expansion plans. Alphabet Inc. Class C shares rose near 3.05%.

Verb Technology surged over 114%, pivoting to the TON ecosystem and enhancing its position in the crypto market. Psyence Biomedical rose nearly 93%, securing a major partnership for clinical trials in Europe, which expands its market presence and revenue. Ezgo Technologies dropped over 32%, while Hub Cyber Security fell over 31% due to regulatory scrutiny.

Federal Reserve official Daly maintains that two rate cuts this year are appropriate, expressing satisfaction with the July decision but reluctance to repeat it. Meanwhile, Goldman Sachs forecasts three consecutive 25 basis point rate cuts starting in September, potentially increasing to 50 basis points if the unemployment rate rises further. Apple's App Store saw a 13% increase in spending in July, reaching its highest level since November 2024. In corporate news, Tesla approved a significant stock award for Elon Musk, permitting him to purchase shares at a set price, reflecting ongoing developments within the company.