Market Recap: Stocks Mixed as Treasury Yields Weigh on Sentiment – May 23, 2025
Major Indexes Close Mixed Amid Fiscal Concerns
U.S. stock markets closed mixed on Friday, May 23, 2025, as investors continued to grapple with concerns over rising Treasury yields and the potential impact of President Trump’s tax legislation on the federal deficit. The S&P 500 declined 0.35% to 5,821.34, while the Dow Jones Industrial Average fell 0.29% to 41,737.05. The Nasdaq Composite dropped 0.60% to 18,813.00, marking its third consecutive day of losses.
This week’s market performance has been notably weak, with the S&P 500 down nearly 2% since Monday, putting it on track for its worst weekly performance since early April when President Trump’s tariff announcements rattled global markets.
Treasury Yields Remain Elevated on Debt Concerns
The primary driver behind market volatility continues to be elevated Treasury yields, with the 30-year yield recently touching 5.161%, its highest level since October 2023. The benchmark 10-year Treasury yield breached 4.6% earlier in the week.
The proposed legislation, which passed by a razor-thin 215-214 vote and now heads to the Senate, is expected to add approximately $3.8 trillion to the federal government’s already substantial $36.2 trillion debt over the next decade.
Top Stock Movers
Several stocks made significant moves on Friday:
– Merus N.V. (MRUS) led gainers with a remarkable 34.15% surge
– Oklo Inc. (OKLO) jumped 23.66%, continuing the strong performance of clean energy stocks
– Uranium Energy Corp. (UEC) rose 23.55% amid growing interest in nuclear energy
– Deckers Outdoor Corporation (DECK) was the day’s biggest loser, plummeting 19.59%
– MINISO Group Holding Limited (MNSO) fell 18.84%
– NVIDIA Corporation (NVDA) slipped 0.71% to $131.89 as investors positioned themselves ahead of next week’s crucial earnings report
Upcoming Market Events
All eyes are now turning to Nvidia’s Q1 2025 earnings report scheduled for Wednesday, which will be the last of the “Magnificent Seven” megacap tech companies to report this quarter. Analysts project Nvidia will report adjusted earnings per share of $0.88 and revenue of $43.3 billion, representing a 66% year-over-year increase.
Other important economic data releases coming next week include:
– Richmond Fed Manufacturing Index (Tuesday)
– New home sales data (Friday)
– FOMC Minutes release (Wednesday evening)
Market Outlook
Traders remain cautious heading into the Memorial Day holiday weekend, with U.S. markets closed on Monday. The recent market pullback has left the S&P 500 approximately 3% below its February record high.
“The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme,” noted Chuck Carlson, CEO of Horizon Investment Services, highlighting the importance of next week’s Nvidia earnings for overall market direction.
As fiscal concerns continue to weigh on sentiment, investors will be closely monitoring developments in the Senate regarding President Trump’s tax legislation, as well as any signals from Federal Reserve officials about potential interest rate cuts later this year. Current market expectations include at least two 25-basis-point rate cuts by year-end, though this outlook remains highly dependent on inflation data and fiscal developments.
