Based on the search results, I now have enough information to write a comprehensive market recap article focusing on today’s market performance, upcoming events, and major stock news.
Major Indexes Pull Back After Strong Previous Week
The major U.S. stock indexes retreated on Monday, May 19, 2025, as investors digested Moody’s downgrade of U.S. government debt and concerns about the country’s fiscal outlook. The downgrade, which stripped the United States of its last triple-A credit rating, cited “persistent, large fiscal deficits” and rising interest costs as key factors behind the decision.
The S&P 500 declined 0.33%, ending its five-session winning streak, while the tech-heavy Nasdaq Composite fell 0.56%. The Dow Jones Industrial Average showed more resilience, dropping just 0.25% after wavering between small gains and losses throughout the session.
Despite today’s pullback, the major indexes remain in positive territory for 2025 after posting substantial gains last week. The S&P 500 is up 1.3% year-to-date, while the Dow has added 0.3%. The Nasdaq remains slightly negative for the year, down 0.5%.
Treasury Yields Rise as Moody’s Downgrades US Debt
Late Friday, Moody’s downgraded the U.S. government’s long-term credit rating from Aaa to Aa1, bringing the agency in line with Fitch and S&P, which had previously stripped the U.S. of its top-tier rating. The downgrade comes as lawmakers weigh a budget that would extend significant tax cuts and boost spending, potentially worsening the country’s fiscal position.
The yield on the 10-year Treasury note rose to 4.51% on Monday, up from 4.44% at Friday’s close, reflecting selling pressure in government debt markets. Thirty-year yields briefly touched 5% before retreating slightly, a level not seen since late 2023.
Tech Stocks Lead Market Decline
Technology stocks, which had led the market’s recent rally, were among the biggest decliners on Monday. Tesla (TSLA) tumbled nearly 3% to $339.71, giving back some of its impressive 17% gain from last week. The decline came amid concerns about the company’s sales performance in China, where registrations reportedly plunged about 26% in April and the first half of May.
Other tech giants also lost ground, with Apple (AAPL) dropping about 2% and Nvidia (NVDA) declining as well. Among other notable tech movers, Palantir (PLTR) and Advanced Micro Devices (AMD) each fell approximately 2%. Microsoft (MSFT) was one of the few tech giants to buck the trend, inching slightly higher.
Dollar Weakens, Gold Rises as Safe Haven
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, declined 0.7% to 100.35. Meanwhile, gold futures rose 1.3% to $3,230 an ounce as investors sought safety amid the equity market downturn.
Bitcoin traded around $103,500, relatively unchanged from last week’s close but down from an overnight high near $107,000. West Texas Intermediate crude oil futures edged up 0.2% to $62.60 per barrel.
Key Earnings Reports This Week
Investors are looking ahead to a busy week of corporate earnings reports that could provide further direction for the market. Several major companies are scheduled to announce their quarterly results in the coming days.
Tuesday will see reports from Home Depot (HD), with analysts watching for insights into consumer spending on home improvement. Cybersecurity firm Palo Alto Networks (PANW) will also report, with investors eager to see if the company can maintain its strong growth trajectory.
Wednesday brings a particularly heavy slate of earnings, including retail giant Target (TGT), which is expected to see significant stock movement with an implied move of +/- 10.35%. Chinese tech company Baidu (BIDU), home improvement retailer Lowe’s (LOW), medical device maker Medtronic (MDT), and cloud data platform Snowflake (SNOW) are also set to report. Video conferencing provider Zoom (ZM) and Chinese electric vehicle manufacturer Xpeng (XPEV) round out Wednesday’s notable reports.
Thursday’s highlights include semiconductor company Analog Devices (ADI), financial software provider Intuit (INTU), and design software maker Autodesk (ADSK).
Looking Ahead: Market Catalysts
Market participants will be closely monitoring developments related to the Republican tax-and-spending bill, which cleared a key hurdle in the House Budget Committee late Sunday. The bill, which is projected to add trillions to the deficit, faces several more obstacles in the House and Senate.
Trade tensions also remain a focus, with President Trump recently criticizing Walmart for indicating it would raise prices in response to tariffs. The European Union has cut its growth forecasts due to ongoing trade war concerns, while drinks giant Diageo warned of a potential $150 million hit from tariffs.
With a light economic calendar this week, investors will be paying particular attention to manufacturing data and initial jobless claims for further insights into the health of the U.S. economy.
As the market digests the Moody’s downgrade and looks ahead to key earnings reports, volatility may persist in the near term. However, the recent strong performance of major indexes suggests underlying resilience in the face of fiscal and trade concerns.