Complete Market OverviewMajor Indexes Pull Back After Recent Gains
As of midday Wednesday, May 21, 2025, U.S. stock markets are trading lower, with all three major indexes in negative territory. The S&P 500 is down 0.5%, breaking a six-day winning streak, while the Nasdaq Composite has declined 0.2%. The Dow Jones Industrial Average is experiencing the steepest drop, falling 1% or approximately 400 points.
Today’s market retreat comes after Tuesday’s session when the S&P 500 closed lower for the first time in seven days. Despite recent volatility, the major indexes have shown resilience in 2025, with both the S&P 500 and Dow Jones back in positive territory for the year as global trade tensions have eased in recent weeks.
Target Shares Plunge on Disappointing Earnings
Target (TGT) shares have dropped over 5% in midday trading after the retailer missed first-quarter revenue expectations and cut its full-year sales outlook. The company reported earnings per share of $1.30 against analyst expectations of $1.61, while revenue came in at $23.85 billion versus the $24.27 billion forecast.
In a concerning development for investors, Target’s comparable sales declined by 3.8% compared to the year-ago period. CEO Brian Cornell cited “ongoing pressure in discretionary business, declining consumer confidence, tariff uncertainty, and backlash to the company’s DEI program updates” as factors contributing to the disappointing results.
Target’s struggles stand in contrast to competitor Walmart, which recently reaffirmed its full-year outlook. Target shares have now fallen approximately 32% since the start of the year.
Tech Sector Shows Relative Strength
While the broader market is down, technology stocks are showing relative strength. Alphabet (GOOGL) shares are up over 5% in midday trading, providing some support to the Nasdaq.
Investors Watching Congressional Tax Bill Developments
Market participants are closely monitoring deliberations in Congress regarding a sweeping bill that would extend significant tax cuts and boost spending. The legislation has become a focal point for investors assessing potential impacts on corporate earnings and economic growth.
Upcoming Market Events
Several key events are on the horizon that could impact market direction:
1. FOMC Minutes Release: The Federal Reserve will release minutes from its May 6-7 meeting on May 28, providing insights into the central bank’s thinking on interest rates and inflation.
2. Fed Speeches: Multiple Federal Reserve officials are scheduled to speak this week, including Chair Jerome Powell, who will deliver remarks at Princeton University on May 25.
3. Economic Data: Investors will be watching for the release of consumer credit data and the weekly jobless claims report tomorrow.
Oil Prices Rising
Adding to market concerns, oil prices are trending higher today, potentially putting additional pressure on inflation metrics that the Federal Reserve closely monitors.
Market Outlook
Despite today’s pullback, market sentiment has improved in recent weeks as global trade tensions have eased. However, concerns about corporate earnings, inflation, and the impact of potential tax legislation continue to create uncertainty.
The VIX, often referred to as Wall Street’s “fear gauge,” is up slightly at 18.20, indicating moderate market anxiety.
As we move through the remainder of the week, investors will be watching for additional earnings reports, economic data releases, and further developments on the tax bill to gauge the market’s next direction.