Track Markets Live NowMajor Indexes Retreat Following Strong Performance
As of midday Thursday, May 15, 2025, major U.S. stock indexes are trading lower, taking a breather after several days of gains. The Dow Jones Industrial Average is down 0.3%, while the S&P 500 has declined 0.3% and the tech-heavy Nasdaq Composite has fallen 0.7%.
This pullback follows a significant rally in recent sessions, with the S&P 500 having just turned positive for 2025 earlier this week after encouraging inflation data. The Nasdaq Composite had been on an impressive six-day winning streak, largely driven by strong performances from technology giants.
Market Sentiment and Economic Context
Today’s market retreat comes amid a backdrop of mixed economic signals. Treasury yields have fallen, with the 10-year yield dropping to 4.5%, suggesting investors are seeking safer assets.
Traders appear to be taking profits after the recent rally, with some caution emerging as they digest new economic data and corporate earnings reports. Global trade tensions have eased recently, which had been a positive catalyst for the market’s upward movement over the past week.
Major Earnings Releases Driving Stock Movements
Several major companies reported earnings before the market opened today, creating significant movement in individual stocks:
– Walmart (WMT) released its Q1 2026 earnings, with analysts expecting earnings per share of $0.57, representing a 5% decrease compared to the same quarter last year. The retail giant has consistently beaten expectations in previous quarters.
– Deere & Company (DE) reported quarterly results, with analysts projecting earnings per share of $5.68, a substantial 33.41% decrease from the same period last year. The farm equipment manufacturer has exceeded expectations in recent quarters.
– Alibaba Group Holding (BABA) shares have dropped over 7% after the company missed revenue estimates in its fiscal fourth quarter results.
– Applied Materials (AMAT) is set to report after the market close, with analysts expecting earnings per share of $2.31 on revenue of $7.12 billion.
– NetEase (NTES) and NICE Ltd (NICE) also reported earnings today, with analysts expecting year-over-year growth for both companies.
Technology Sector Performance
The technology sector, which had been leading the market’s recent gains, is showing weakness today. The pullback in tech stocks is particularly notable after the sector’s strong performance in recent sessions. Companies like Nvidia (NVDA), Tesla (TSLA), and AMD (AMD) had surged in previous sessions but are now facing selling pressure.
Coinbase Global (COIN) is in focus after reporting that hackers bribed employees outside the U.S. to steal client data. This news comes as the cryptocurrency exchange prepares to join the S&P 500 starting May 19.
Upcoming Economic Data and Events
Investors are closely monitoring several key economic releases scheduled for today and tomorrow:
– Today’s economic calendar includes Housing Starts and Permits data and Import and Export Prices, both released at 8:30 AM ET.
– The preliminary University of Michigan Consumer Sentiment report for May is due at 10:00 AM ET, which could provide insights into consumer confidence and inflation expectations.
– Tomorrow will bring data on Non-Oil Exports and various international trade figures that could impact market sentiment.
– Several Federal Reserve officials are scheduled to speak in the coming days, including Thomas Barkin and Mary Daly later today, which could provide clues about the central bank’s thinking on monetary policy.
Market Outlook
Despite today’s pullback, the overall market sentiment remains cautiously optimistic. The recent rally has been supported by encouraging economic data and easing global trade tensions. However, investors continue to monitor inflation trends and the potential impact of tariffs on economic growth and corporate profits.
Analysts suggest that market participants should watch key technical levels and upcoming economic data points for indications of the market’s next direction. With earnings season continuing and important economic releases on the horizon, volatility may persist in the near term.
As we move through the trading day, investors will be looking for signs of whether this pullback represents a temporary pause in the recent uptrend or the beginning of a more significant correction. Trading volume and afternoon price action could provide important clues about market sentiment heading into the final trading day of the week.