Latest Market Movements TodayBased on the information gathered, I’ll now write the market recap article with the requested formatting:
Major Indexes End Week on Cautious Note as Treasury Yields Spike
U.S. stock markets closed mixed on Friday, May 23, 2025, as investors grappled with concerns over President Trump’s proposed tax cuts and their potential impact on the nation’s fiscal 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 tech-heavy Nasdaq Composite showed slightly deeper losses, dropping 0.60% to 18,813.00.
The market’s cautious sentiment was largely driven by the spike in yields on long-dated U.S. government securities following the Republican-controlled House’s narrow passage of the state and local taxes (SALT) bill. The 30-Year U.S. Treasury yield touched 5.161%, its highest level since October 2023, while the benchmark 10-Year Treasury yield reached 4.59%.
Tariff Concerns Weigh on Major Retailers and Tech Giants
President Trump’s tariff threats cast a shadow over several major stocks today. Apple (AAPL) shares fell 2.72% after Trump threatened a 25% tariff on iPhones not manufactured in the United States.
Footwear maker Deckers Outdoor (DECK) was among the day’s biggest losers, plunging nearly 20% after the company withheld its full-year guidance, citing uncertainty over tariffs. The maker of Hoka and Ugg footwear provided weaker-than-expected outlook for the current quarter.
Tech Sector Shows Mixed Performance
The technology sector displayed mixed results today. Workday (WDAY) shares tumbled 12.19% after the human resources software maker maintained its full-year subscription revenue guidance at 14% growth without the upside investors typically expect. The company also reported disappointing billings amid what it described as an “uncertain environment.”
Meanwhile, Nvidia (NVDA) shares dipped slightly by 0.57% to $132.07 as investors positioned themselves ahead of the company’s highly anticipated Q1 2025 earnings report next week. Analysts project Nvidia will report adjusted earnings per share of $0.88 and revenue of $43.3 billion, marking a 66% year-over-year revenue increase despite challenges related to blocked sales in China.
Notable Stock Movers
Several stocks made significant moves today:
– Top Gainers: Merus N.V. (MRUS) led the gainers with a remarkable 35.16% surge. Other notable risers included Uranium Energy Corp (UEC) up 25.19%, Oklo Inc. (OKLO) climbing 25.03%, and NuScale Power Corporation (SMR) advancing 16.67%.
– Top Losers: Besides Deckers Outdoor, other significant decliners included MINISO Group Holding Limited (MNSO) down 18.61%, Booz Allen Hamilton Holding Corporation (BAH) falling 16.72%, and Pony AI Inc. (PONY) dropping 16.42%.
Intuit (INTU) was the best-performing stock in the S&P 500 after the maker of TurboTax and QuickBooks software beat profit and sales estimates during the key income tax filing period.
Economic Data and Upcoming Events
On the economic front, initial jobless claims decreased by 2,000 to 227,000 for the week ended May 17, coming in below the consensus estimate of 230,000. Continuing claims increased by 36,000 to 1.903 million.
The National Association of REALTORS reported that existing home sales in April came in at 4 million units, below the consensus estimate of 4.18 million but slightly above March’s 4.02 million units.
Looking ahead, investors will be closely watching Nvidia’s earnings report next week, which could provide significant insights into the AI sector’s resilience amid global challenges. Additionally, building permits and new home sales data are expected to be released, offering further clues about the health of the housing market.
Market Outlook
As we head into the Memorial Day holiday weekend (markets will be closed on Monday), investors remain cautious about several key factors:
1. The potential impact of Trump’s tax cuts on the U.S. fiscal deficit, which currently stands at a massive $36.2 trillion
2. Rising Treasury yields and their effect on borrowing costs
3. Ongoing concerns about tariffs and their potential impact on global trade
4. Recent credit rating actions, including Moody’s downgrade of the U.S. sovereign credit rating to Aa1 from Aaa
The major averages are heading for weekly losses, with the S&P 500 down nearly 2% through Thursday’s close. The Dow is on pace for a decline of about 1.9%, while the Nasdaq is tracking for a 1.5% slide week to date.
As global economic uncertainties persist, market participants will continue to monitor developments in fiscal policy, international trade relations, and corporate earnings for direction in the coming weeks.