S&P 500 Rises Amid Inflation Concerns and Fed Actions Tesla and Tenon Medical Stocks Surge

March 25, 2025, the S&P 500 Index rose by 0.16%, the Dow Jones Industrial Average increased by 0.01%, and the Nasdaq Composite Index gained 0.46%. The most relevant news for the U.S. stock market includes the forecast of U.S. inflation and recent Federal Reserve actions. S&P forecasts U.S. inflation to remain near 3.0% in 2025 due to tariffs impacting supply chains and consumer prices, potentially affecting the economic growth outlook. Additionally, the Federal Reserve's overnight reverse repurchase agreements reached $214.786 billion, indicating significant liquidity management actions.

Based on the current market performance, several sectors outperformed the S&P 500, including the technology, non-essential consumer goods, energy, communication services, and financial sectors. Notably, the non-essential consumer goods and communication services sectors demonstrated exceptional performance. Conversely, the utilities, healthcare, essential consumer goods, materials, and real estate sectors moved in the opposite direction of the S&P 500.

Tesla shares rose 3.50% today, driven by the company's announcement that it plans to roll out its Full Self-Driving (FSD) technology in China. This move indicates significant progress in one of the key electric vehicle markets, reflecting investor optimism about Tesla's expansion and technological advancements.

Tenon Medical's stock surged over 280%, driven by FDA approvals that have significantly boosted investor confidence. Desktop Metal saw a near 100% rise, following a favorable court ruling that allows the company to proceed with its merger with Nano Dimension. Mural Oncology shares plummeted over 60% after the company halted the development of nemvaleukin alfa for ovarian cancer. IMAC Holdings experienced a significant drop of over 50%, indicating financial instability as its stock price hit a 52-week low.

The European Central Bank's Villeroy indicated that a market view of a 2% rate by summer is a possible scenario, which could impact global interest rates and financial markets. Moody's reported a further deterioration in the fiscal strength of the United States since assigning a negative outlook to its sovereign rating, raising concerns about the country's financial stability. The Federal Reserve's Kugler noted signs of economic softness in early-year data, although the labor market remains stable with a low unemployment rate, which may influence monetary policy decisions. Meanwhile, Shell announced plans to enhance shareholder distributions through share buybacks and reduced capital spending, reflecting a strategic shift that could affect its stock performance.