Latest Market Movements TodayMajor Indexes Show Signs of Recovery After 800-Point Dow Drop
The stock market is showing early signs of recovery today, Thursday, May 22, 2025, after experiencing one of its most significant sell-offs in over a month on Wednesday. Futures indicated a cautious start to the trading day, with S&P 500 and Nasdaq 100 futures adding 0.14% and 0.18% respectively, while Dow Jones Industrial Average futures remained flat in pre-market trading.
Wednesday’s dramatic sell-off saw the Dow Jones Industrial Average plummet more than 800 points, while the S&P 500 and Nasdaq both fell approximately 1.5%. The decline was primarily driven by concerns over the ballooning U.S. deficit and a sharp spike in Treasury yields.
Bond Yields and Deficit Concerns Continue to Pressure Markets
The 10-year Treasury yield has climbed to 4.59%, while the 30-year Treasury bond yield jumped to 5.09% – the highest level since October 2023.
The massive budget bill has hit roadblocks in the House of Representatives, with blue-state Republicans signaling they would not support the legislation without larger deductions for state and local taxes (SALT). This opposition threatens to derail the tax legislation that President Trump and House Speaker Mike Johnson hope to pass before Memorial Day weekend.
Major Companies Making Market Moves Today
Several major corporations are influencing market movements today. AT&T (T) made headlines after agreeing to acquire substantially all of Lumen Technologies’ (LUMN) Mass Markets fiber internet connectivity business, sending Lumen’s shares surging 15% in after-hours trading.
Tech giants are showing mixed performance today. Alphabet (GOOGL) is up 3.5%, while Amazon (AMZN) is down more than 1%. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), and Tesla (TSLA) are all trading slightly lower.
In the retail sector, Target (TGT) dropped 4% after lowering its full-year revenue projections amid declining sales. Lowe’s (LOW) shares fell 1% despite reporting better-than-expected first-quarter profits and affirming its full-year outlook.
Global Market Context and Economic Indicators
Asian markets followed Wall Street’s downward trend, with indices in Australia, Japan, and South Korea opening lower. The Korean won jumped to a six-month high before weakening 0.4% in early Asian trade after reports that the U.S. believes a relatively weak won is contributing to South Korea’s trade surplus.
In Europe, economic data released today shows the Eurozone’s private sector unexpectedly contracted in May, with the Composite Purchasing Managers’ Index falling to 49.5 from 50.4 in April, dipping below the 50 threshold that separates expansion from contraction.
Upcoming Market Events to Watch
Investors will be closely monitoring today’s weekly jobless claims data for clues about the labor market’s health. Additionally, OPEC+ members are discussing another potential production increase at their upcoming June 1 meeting, which could be the third consecutive month of adding extra barrels to the market.
Why is the market showing signs of recovery today? After Wednesday’s significant sell-off, investors appear to be cautiously returning to equities, though concerns about deficit spending and rising bond yields continue to temper enthusiasm.
As trading continues throughout the day, market participants will be watching for any developments regarding the budget negotiations in Washington and monitoring corporate earnings reports for further insights into the economic outlook.