Today’s Midday Market Update: Stocks Retreat After Recent Rally
Major Indexes Pull Back as Market Takes a Breather
As of midday Thursday, May 15, 2025, major U.S. stock indexes are trading lower, taking a pause after several days of gains. The Dow Jones Industrial Average is down 0.3% at 42,051.06 points, while the S&P 500 has declined 0.3% to 5,892.58 points. The tech-heavy Nasdaq Composite is experiencing a steeper drop, falling 0.7% to 19,146.81 points.
This pullback comes after a strong performance earlier in the week, with the S&P 500 having closed higher for three consecutive sessions and the Nasdaq Composite extending its winning streak to six days before today’s decline. The recent rally had pushed the S&P 500 into positive territory for 2025, bolstered by encouraging inflation data and progress on trade negotiations.
Key Earnings Reports Drive Individual Stock Movements
Several major companies reported earnings today, significantly impacting their stock prices:
Walmart (WMT) reported better-than-expected quarterly earnings of 61 cents per share, surpassing analysts’ estimates of 58 cents. However, revenue came in slightly below expectations at $165.61 billion versus the forecasted $165.84 billion. Despite the earnings beat, Walmart shares are trading slightly lower in midday trading.
Alibaba Group (BABA) shares have dropped nearly 7% after the Chinese e-commerce giant missed revenue expectations for its fiscal fourth quarter. The disappointing results have weighed on investor sentiment toward Chinese tech stocks.
UnitedHealth Group (UNH) shares have fallen more than 6% following reports that the company is being investigated by the Department of Justice for possible Medicare fraud, according to The Wall Street Journal.
Applied Materials (AMAT), a key semiconductor equipment manufacturer, is set to report its Q2 2025 earnings after market close today, with investors closely watching for insights into the semiconductor industry’s outlook.
Tech Sector Faces Pressure Despite Recent Strength
Technology stocks, which had been leading the market higher in recent sessions, are facing pressure today. NVIDIA (NVDA), which had gained 4.2% yesterday on news of sending 18,000 of its top AI chips to Saudi Arabia, is giving back some of those gains.
Advanced Micro Devices (AMD), which announced a $6 billion share buyback program yesterday and rose 4.7%, is also experiencing profit-taking today as investors reassess the semiconductor sector’s valuation.
Oil Prices Tumble on Middle East Developments
Crude oil prices are falling sharply today, with Brent crude dropping to $64 per barrel. The decline comes after President Donald Trump indicated that the United States is getting closer to a deal on Iran’s nuclear program, which could potentially increase global oil supply.
Economic Data Released Today
This morning saw the release of several important economic indicators:
– Advance Retail Sales figures were published at 8:30 AM ET
– The Empire State Manufacturing Survey and Philadelphia Fed Manufacturing Survey were both released at 8:30 AM ET
– Producer Price Index (PPI) data came out at 8:30 AM ET
– Industrial Production and Capacity Utilization figures were released at 9:15 AM ET
These reports are providing investors with fresh insights into the health of the U.S. economy as concerns about inflation and growth persist.
Upcoming Market Events to Watch
Looking ahead, investors are closely monitoring several key events that could impact market direction:
The Federal Reserve’s next meeting is scheduled for June 18, 2025. While markets don’t currently expect a rate cut at this meeting, the Fed will provide updated economic projections that could offer insights into the future path of interest rates.
Market expectations for rate cuts have shifted, with a July or September cut now considered more likely than a June reduction. Overall, markets are anticipating between one and four interest rate cuts in 2025, with the most probable scenario being two or three cuts that would leave short-term rates in the 3.5% to 4% range by year-end.
As we move through the second quarter of 2025, market participants remain focused on how trade policies, inflation trends, and corporate earnings will shape the investment landscape for the remainder of the year.
