Today’s Midday Market Update: Wall Street Slips as S&P 500 Aims to Snap Winning Streak

Major Indexes Pull Back After Recent Rally

As of midday Tuesday, May 20, 2025, major U.S. stock indexes are trading lower, putting the S&P 500’s impressive six-day winning streak in jeopardy. The S&P 500 is down 0.18% at 5,952.68, while the Nasdaq Composite has declined 0.33% to 19,151.53, and the Dow Jones Industrial Average has slipped 0.12% to 42,742.79.

This pullback comes despite a rapid and sharp rebound for stocks over the past five weeks that has brought the S&P 500 to within just 3% of its record high. The modest declines today follow a relatively calm trading session on Monday that saw marginal gains across major indexes.

Home Depot Leads Earnings News

Home Depot (HD) is in focus today after the home improvement retailer reported its fiscal first-quarter results before the market opened. The company’s earnings per share came in at $3.59, representing a 1.10% decrease compared to the same quarter last year. However, revenue topped analysts’ expectations, helping the stock move higher in early trading.

During the earnings call, Home Depot executives addressed concerns about President Donald Trump’s tariffs, stating they plan to keep prices unchanged despite the new trade policies. This stance contrasts with comments from Walmart executives last week that suggested prices would eventually need to rise in response to the levies, citing margin pressures.

Other notable companies reporting earnings today include Elbit Systems (ESLT), Amer Sports (AS), and Hovnanian Enterprises (HOV), with Toll Brothers (TOL) set to release its quarterly report after the market closes.

Tech Stocks Retreat After Recent Surge

The technology sector, which has led the market’s recent rally, is experiencing a modest pullback today. Mega-cap tech stocks are mostly lower, though the declines are relatively small. Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), and Meta Platforms (META) are each down less than 0.5%.

Nvidia, which has been a market leader, is down 1.32% today after jumping 3% on Friday as it attempted to move decisively above its 50-day moving average for the first time since February 20. The chipmaker has faced challenges in 2025, with its stock down approximately 18.9% year-to-date.

Tesla (TSLA) is bucking the trend, rising more than 1% in midday trading. The electric vehicle manufacturer’s shares have gained ground in each of the past four weeks, though they remain about 40% below their all-time high set in December 2024.

Upcoming Market Events

Fed Speakers in Focus

Traders are keeping an eye out for commentary about the Federal Reserve’s interest rate policy, as several central bank officials are scheduled to speak today, including St. Louis Fed President Alberto Musalem. These comments could provide insights into the Fed’s thinking on future rate decisions amid ongoing economic uncertainty.

Tariff Developments

Market participants continue to monitor developments related to U.S. trade policies. Last week’s agreement between the U.S. and China to reduce reciprocal tariffs from 125% to 10% during a 90-day negotiation period has provided some relief to investors, though a separate 20% tariff imposed by President Trump on China as part of efforts to stem the flow of fentanyl remains in place.

Market Movers and Notable Stocks

Beyond the major tech names, several stocks are making significant moves today:

– UnitedHealth (UNH) has gained more than 2%, continuing to rebound from a sell-off last week spurred by the departure of its CEO and reports that the health insurer faces a DOJ investigation.

– Among the top gainers on the Nasdaq are Peloton Interactive (PTON) up 4.69%, Moderna (MRNA) rising 3.62%, and Dollar Tree (DLTR) advancing 2.82%.

– On the Dow Jones, Merck & Co (MRK) is leading with a 1.76% gain, followed by Nike (NKE) up 1.63% and Boeing (BA) rising 1.38%.

Bond Market and Other Assets

The yield on the 10-year Treasury note, which affects borrowing costs on various consumer and business loans, is at 4.47% in recent trading, down slightly from yesterday’s close of 4.48%. The yield had shot up to 4.56% early Monday, its highest intraday level in more than a month, as investors digested Moody’s downgrade of U.S. sovereign debt.

In other markets, Bitcoin is trading at $105,300, little changed from Monday afternoon but not far from its record high of about $109,000 set in January. Gold futures are up 0.3% at $3,240 an ounce, while West Texas Intermediate crude oil futures have slipped 0.5% to $62.40 per barrel.

Market Outlook

Despite today’s pullback, some market analysts remain optimistic about the recent rally. Carson Group chief market strategist Ryan Detrick noted that the S&P 500’s nearly 20% gain over the previous 27 trading days should be taken seriously, stating, “That’s not a bear market rally. That’s not a short-covering rally.”

However, concerns persist about the impact of tariffs on the economy and worries about a potential U.S. recession. Investors even shrugged off the downgrade of the U.S. government’s credit by Moody’s Ratings, suggesting a degree of resilience in market sentiment despite these headwinds.

As trading continues this afternoon, market participants will be watching for any shifts in momentum that could determine whether the major indexes can recover from their midday losses or extend their declines into the close.