Real-Time Stock Market UpdatesBased on the information gathered, I’ll now write the stock market recap article as requested.
Major Indexes Retreat Following Tuesday’s Rally
U.S. stock markets pulled back on Wednesday, May 28, 2025, as investors took a cautious stance ahead of two major market catalysts: Nvidia’s highly anticipated earnings report and the release of the Federal Reserve’s latest meeting minutes. The retreat follows Tuesday’s significant rally that was fueled by easing trade tensions between the U.S. and European Union.
By the close of trading, the Dow Jones Industrial Average fell 0.58% (244.95 points) to 42,098.70, while the S&P 500 declined 0.56% (32.99 points) to 5,888.55. The tech-heavy Nasdaq Composite dropped 0.51% (98.23 points) to 19,100.94.
Despite today’s pullback, major indexes remain on track for robust monthly gains, with both the S&P 500 and Nasdaq poised for their best monthly performance since November 2023. The S&P 500 currently sits approximately 4% below its record closing high reached on February 19, 2025.
All Eyes on Nvidia’s Earnings Report
Market participants are holding their breath for Nvidia’s (NVDA) first-quarter earnings report, scheduled for release after today’s closing bell. The AI chipmaker is expected to report a 66.2% surge in revenue compared to the same period last year, according to data compiled by LSEG.
“Nvidia earnings have become one of the big macro market movers both because of the leverage to the AI trade and the AI theme and also because of the linkages to global trade,” noted Ross Mayfield, investment strategist at Baird.
Options traders have been bracing for industry-wide volatility, with defensive options contracts drawing heavy attention for the VanEck Semiconductor ETF (SMH), the largest semiconductor ETF in the market.
Fed Minutes and Monetary Policy Outlook
Investors are also closely analyzing the minutes from the Federal Reserve’s May 6-7 meeting, which were released this afternoon. The central bank held borrowing costs steady at that meeting, and market participants are seeking insights into how policymakers are approaching monetary policy amid heightened macroeconomic uncertainty.
New York Fed President John Williams recently commented that central banks must “respond relatively strongly” when inflation begins to deviate from their target, given the high uncertainty around the economic impact of U.S. tariffs and trade policy.
Bond yields have been in focus lately, with the benchmark 10-year Treasury note yield edging slightly higher to 4.44% on Wednesday. Global bond markets have faced scrutiny over concerns about fiscal sustainability in major economies including the United States and Japan.
Corporate News Driving Individual Stocks
Several companies made headlines on Wednesday with significant stock movements:
– Michael Kors-owner Capri Holdings (CPRI) fell 4.6% after reporting a wider-than-expected quarterly loss.
– Department-store chain Macy’s (M) rose 3.7% after beating first-quarter earnings expectations. The company reported better-than-expected comparable-store sales, suggesting its strategy of focusing on best-performing locations is starting to pay off despite weakening consumer sentiment and tariff volatility.
– Cybersecurity firm Okta (OKTA) plunged more than 16% after flagging risks related to the uncertain economic environment, despite maintaining its full-year outlook.
– Joby Aviation (JOBY) soared 28.78%, making it one of the day’s top gainers.
– Stellantis (STLA) announced the appointment of Antonio Filosa as CEO on Wednesday. The world’s fourth-biggest automaker is seeking to turn around its performance, boost its flagging share price, and recover lost U.S. market share.
– Fannie Mae (FNMA) and Freddie Mac (FMCC) shares climbed as President Donald Trump announced plans to take the mortgage finance firms public while maintaining government guarantees and oversight. “I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES,” Trump stated on Tuesday.
Trade Tensions and Market Outlook
Markets received a boost on Tuesday after President Trump announced a delay in implementing 50% tariffs on European Union goods. The tariffs, which had been a major source of market volatility, are now postponed until July 9 to allow for negotiations between the White House and the EU.
The S&P 500 had fallen as much as 18.9% from its February peak in the wake of Trump’s erratic tariff announcements that have whipsawed markets for much of his second term. However, easing concerns around global trade, upbeat earnings, and tame inflation data have recently boosted risk appetite.
Looking Ahead: Key Market Catalysts
As May draws to a close, investors will continue to monitor several key factors that could influence market direction:
1. Nvidia’s earnings impact: The market reaction to Nvidia’s results could set the tone for the broader technology sector and potentially the entire market.
2. Trade negotiations: Ongoing discussions between the U.S. and EU ahead of the July 9 tariff deadline will remain a focal point for investors concerned about global trade.
3. Fed policy signals: Any shifts in the Federal Reserve’s stance on interest rates could significantly impact market sentiment, especially as concerns about inflation and economic growth persist.
4. Corporate earnings: As the first-quarter earnings season winds down, attention will shift to early indicators for second-quarter performance and any guidance updates from major companies.
With the S&P 500 and Nasdaq on track for their strongest monthly gains since late 2023, market participants will be watching closely to see if this momentum can be maintained heading into the summer months amid ongoing economic and geopolitical uncertainties.