Today’s Market ActionMajor Indexes Stabilize Following Wednesday’s Plunge
The U.S. stock market showed signs of stabilization on Thursday, May 22, 2025, as investors cautiously returned after Wednesday’s significant sell-off. The Dow Jones Industrial Average ended the day with modest gains of 0.2% after recovering from early losses, while the S&P 500 added 0.1%. The tech-heavy Nasdaq Composite performed better, climbing 0.5% as technology stocks led the rebound.
Wednesday’s market rout saw the Dow slide more than 800 points amid concerns about the ballooning federal deficit and rising Treasury yields. Today’s modest recovery came as yields backed off their recent highs, with the benchmark 10-year Treasury note yield settling at 4.59%, slightly lower than yesterday’s peak of 4.63%.
Budget Bill Passage Drives Market Sentiment
Market volatility this week has been largely driven by developments in Washington, D.C., as President Donald Trump’s “One Big Beautiful Bill” narrowly passed in the House of Representatives early Thursday. The bill now heads to the Senate, where it faces additional scrutiny.
Investors remain concerned about the legislation’s potential impact on the federal deficit. The Congressional Budget Office estimates the bill could add approximately $3.8 trillion to the U.S. debt over the next decade, increasing it from the current $36.2 trillion.
“It really speaks to the impact from the rate of change of yields versus just that drift higher,” said Kevin Gordon, Charles Schwab senior investment strategist. “It’s driven by inflation concerns that are tied to the budget deficit that are then tied to the potential path of the dollar.”
Tech Stocks Lead Recovery
Technology giants, which had been at the forefront of the market’s recent rally, showed resilience on Thursday. Alphabet (GOOGL) led the S&P 500 with a gain of over 3%. Tesla (TSLA) climbed 2%, while Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), and Meta Platforms (META) also advanced. Apple (AAPL) was the laggard among mega-caps, finishing slightly lower.
The so-called “Magnificent Seven” stocks have faced challenges in 2025, with most showing negative performance year-to-date. Through April, Alphabet was down 16.1%, Amazon fell 15.9%, Apple declined 15.1%, and Nvidia dropped 18.9%. Tesla has been the worst performer, down 30.1% through April.
Cryptocurrency Surge Continues
Bitcoin continued its remarkable rally, reaching an all-time high near $112,000 on Thursday. This surge boosted crypto-related stocks, with MicroStrategy (MSTR) and Coinbase Global (COIN) each gaining more than 2%.
Corporate News
In corporate developments, Nike (NKE) shares rose approximately 1.5% following news that the sports apparel giant would resume selling on Amazon. Reports also indicated the company plans to raise prices in response to tariffs.
UnitedHealth (UNH) continued its volatile trading pattern, dropping about 1% after initially falling more than 3% at the market open. The health insurance giant has been under pressure following the departure of its CEO, the suspension of guidance, and reports of a Department of Justice investigation.
Upcoming Market Events
Investors will be closely watching several key economic releases in the coming days. Friday will bring new home sales data, which could provide insights into the health of the housing market.
Next week’s economic calendar includes important data releases such as GDP growth figures, consumer confidence readings, and manufacturing PMI data, all of which could impact market direction as investors continue to assess the economic landscape and potential Federal Reserve policy moves.
As markets head into the Memorial Day weekend, trading volumes may thin out, potentially leading to increased volatility. Investors will continue monitoring developments in Washington regarding the budget bill and assessing its implications for inflation, interest rates, and overall economic growth.