U.S. Markets Rally as Fed Vice Chair Appointed and Rate Cuts Uncertain

March 17, 2025, U.S. markets saw a positive start to the week with the S&P 500 rising 0.64%, the Dow Jones Industrial Average gaining 0.85%, and the Nasdaq Composite increasing 0.31%. The Federal Reserve's Vice Chair appointment and expected rate decisions are significant for U.S. markets. Trump appointed Michelle Bowman as Federal Reserve Vice Chair, emphasizing her expertise in inflation and banking regulation. Meanwhile, lazard anticipates the Fed won't cut rates in 2025 due to inflation risks, diverging from market expectations of multiple rate cuts this year.

Today, the market saw a broad-based rally with several sectors outperforming the S&P 500. Leading the charge were the healthcare, consumer staples, energy, materials, industrials, real estate, and financial sectors, all of which demonstrated strong performance. Additionally, the technology, communication services sectors also managed to outperform the broader market.

Today, several notable companies saw significant movements in their stock prices. netflix rose by 3.49%, driven by its strategic focus on technological improvements and advertising expansion, which could pave the way for substantial growth. Oracle's stock surged by 3.18%, fueled by its $5 billion UK investment plan. Novo Nordisk's shares rose by 3.89%, as analysts expect the company's earnings to grow by 18.9% this fiscal year. Alibaba Group's stock climbed by 4.59%, with government efforts to boost consumer demand potentially benefiting its e-commerce business.

AirNet Technology surged nearly 98%, driven by an increase in authorized share capital. Scienture Holdings rose approximately 66%. Bon Natural Life Limited's shares plummeted over 57% following a $12 million offering that may dilute existing shares, negatively impacting shareholder value. Newton Golf's shares dropped over 34% as the company faces declining sales and profitability issues.

Goldman Sachs has revised its merger and acquisition growth estimates down to 7% from a previously expected 25%, indicating a potential slowdown in corporate deals. Alphabet is in advanced discussions to acquire Wiz for $30 billion, reflecting significant investment activity in the tech sector. The OECD warns that higher-than-expected inflation could lead to more restrictive monetary policy, which may impact financial markets globally. Americans are experiencing a tougher economic climate, with increased fears of credit rejections reported by the NY Fed, suggesting potential shifts in consumer confidence and spending.

Ask Aime: What impact will Michelle Bowman's appointment as Federal Reserve Vice Chair have on the U.S. markets?