Market Overview
U.S. equities showed a rebound on May 29, 2025. Markets experienced significant volatility throughout the day. Despite mid-day declines, major indices ultimately closed higher. This recovery signals resilience in the market.
Major Indices
- Dow Jones Industrial Average: The Dow rose 0.28% to close at 42,215.73. It recovered from earlier dips.
- S&P 500: This index advanced 0.40% to 5,122.20. It also saw a strong late-day comeback.
- Nasdaq Composite: The Nasdaq increased 0.38%, finishing at 19,173.23. Technology stocks contributed to this gain.
- Russell 2000: Small-cap stocks gained 0.28%, reaching 2,073.62. This indicates broader market participation.
- VIX Index: The volatility index dropped to 18.89, down 2.18%. Fear subsided after briefly exceeding 20.
Key Market Trends & News
The market navigated several impactful events. Investor sentiment was shaped by corporate earnings and legal decisions. Economic data also provided crucial insights.
NVIDIA Earnings & Semiconductor Momentum
NVIDIA reported strong earnings for the first quarter of fiscal 2026. Revenue was $44.1 billion, a 69% year-over-year increase. Data Center revenue surged 73% to $39.1 billion. This robust performance fueled gains in tech and semiconductor stocks. Despite an intraday peak, NVIDIA closed up 3.25% at $140. Its strong outlook remains a key driver.
- News Link: Nvidia Beats on Q1 Earnings and Revenue
Trump Tariff Ruling & Market Uncertainty
A U.S. court initially blocked most of President Trump’s tariffs. This decision briefly boosted market confidence. However, an appeals court quickly paused this ruling. The White House announced an appeal, reinstating market uncertainty. Goldman Sachs also suggested tariffs would likely prevail. The situation moves to the Supreme Court.
Economic Data Signals Slowdown
Several economic indicators pointed to a decelerating U.S. economy.
- Q1 2025 GDP (Second Estimate): Real GDP decreased at a 0.2% annual rate. This was an upgrade from the advance estimate (-0.3%). However, it still marked the first quarterly contraction in three years. Increased imports and decreased government spending were factors.
- Inflation: Quarterly inflation rose from 2.3% to 3.7%. This indicates persistent price pressures.
- Jobless Claims: Initial jobless claims reached 240,000, higher than expected. Continuing claims also increased to 1,919,000. These figures suggest a softening labor market.
- Pending Home Sales: Sales fell by 6.3% month-over-month. Year-over-year, they dropped by 2.5%. This highlights weakness in the housing sector.
These data points bolster expectations for potential Fed rate cuts.
Powell-Trump Meeting
President Trump met with Federal Reserve Chair Jerome Powell. They discussed the economy. Trump urged faster interest rate cuts. Powell reiterated that policy decisions depend on data. He emphasized the Fed’s objective and non-political analysis.
Interest Rates & Bond Market
The 7-year Treasury auction was successful. It attracted significant demand, with bids totaling $118.5 billion. Yields were favorable at 4.19%. This improved bond market sentiment.
- 10-Year Treasury Yield: The yield fell 4 basis points to 4.43%.
- 2-Year Treasury Yield: The yield dropped 4 basis points to 3.94%.
Bond yields generally declined. This reflects growing expectations for Fed rate cuts. A weaker economy suggests the Fed will ease policy.
Commodities Market
Oil prices rose on May 29, 2025. This led to gains in energy stocks. The overall impact on the broader market was contained.
Major Tech Stocks Performance
Technology stocks showed mixed performance.
- NVIDIA: Closed up 3.25%, but slipped below $140. It remains a market leader.
- Tesla: Increased 0.43%, breaking a prior decline. Tesla’s Robo-taxi launch in Austin is slated for June 12. Ten to twenty vehicles will operate initially. This news negatively impacted ride-sharing companies. Uber fell 4.63%, and Lyft dropped 4.47%. Elon Musk officially left the OpenAI board.
- Other Tech: Amazon and Microsoft posted gains. Apple and Google, however, saw declines. Meta also climbed slightly.
- Market Capitalization: Microsoft (3.4 trillion USD) remains first. NVIDIA (3.39 trillion USD) is second. Apple (3 trillion USD) dropped below its 200-dollar mark. Amazon and Google maintained their position in the 2 trillion USD club. Tesla held eighth place at 1.1 trillion USD. Broadcom and TSMC followed.
AI and Augmented Reality (AR) Stocks
AI-related stocks performed strongly. AI surged 20%. Vuzix jumped 12%. Dell Technologies climbed 6%. Coherent also rose 2.24%. Meta is reportedly collaborating with Anduril. They aim to develop military augmented reality headsets. This expands Meta’s defense sector involvement.
Market Sentiment & Flows
Market breadth was slightly positive. Approximately 3,690 stocks advanced. Conversely, 2,558 stocks declined. This suggests a relatively balanced day for investors. The VIX index declining indicates reduced investor fear.
Upcoming Key Economic Indicators & Events
Tomorrow’s schedule includes personal income and consumption data. Inflation figures will also be released. Next week, several key labor market indicators are due. These will further clarify the U.S. economic trajectory.
Conclusion & Market Outlook
The market demonstrated a slight rebound. NVIDIA’s strong earnings provided a positive catalyst. However, tariff uncertainty and economic slowdown signals tempered gains. The Federal Reserve’s stance on interest rates remains data-dependent. Probability of a September rate cut increased to 52.8%. Further cuts are expected by December. Investors await more economic data.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.