Categories: Money Life

U.S. Market Wrap-Up: May 15, 2025

Table of Contents

U.S. Market Wrap-Up: May 15, 2025

1. Market Overview

Today, U.S. stock markets showed a mixed performance. While the S&P 500 and Dow Jones indices recorded gains, the Nasdaq Composite saw a slight decline. The market did not lose its upward trend entirely but the momentum was not very strong, particularly for technology stocks. A notable shift towards defensive stocks and safety assets was observed due to signs of economic slowdown from recent data and ongoing uncertainties including tariff impacts and supply chain issues.

2. Major Indices

Dow Jones: 4,232.75 – Up 0.65%. Turned positive after yesterday’s decline.
S&P 500: 5,916.93 – Up 0.41%. Continued rising, nearing the 6,000 level. Rose 0.60% YTD (figure mentioned in text).
Nasdaq Composite: 19,112.3 or 19,112.32 – Down 0.18%. Slightly lower after initially turning positive, showing some weakness.
Russell 2000: 2,094.6 or 2,087.48 – Up 0.52% or 0.65%. Recovered some of yesterday’s losses.
VIX (Volatility Index): 17.81 or 17.83 – Down 4.35% or 4.2%. Continued to fall, returning to levels seen around March, providing room for the market to rise.
Dollar Index: 100.65 or 100.81 – Down 0.2%. Slightly lower compared to other currencies.
10-yr Treasury Yield: 4.43% or 4.433% – Down 9 or 9.5 bp. Bond prices rose reflecting safety asset demand.
2-yr Treasury Yield: 3.95% – Down 9 bp.
Gold: 3,241.3 or 2,324 – Up 1.70% or 1.66%. Up (safety).
Oil (Brent): 647 or 61.65 – Down 2.215% or 2.38%. Down.

3. Key Market Trends & News

Economic Data: Recent data painted a mixed picture, suggesting an economic slowdown but not a recession. PPI fell sharply (0% to -0.5%), with Core PPI also turning negative (0.4% to -0.4%/-0.3%). Retail Sales dropped significantly (1.7% to 0.1%), suggesting consumer spending slowdown. Jobless claims remained relatively high (229k initial, 1.881M continuing). Manufacturing indices (NY and Philly) remained negative and manufacturing production turned negative (0.4% to -0.4%).
Shift to Defensives: Due to economic uncertainty and the data releases, investors moved towards defensive sectors and safety assets including healthcare, consumer staples, utilities, some financials (like JP Morgan), bonds, and gold.
Federal Reserve Officials’ Remarks: Fed officials (Barr and Powell) acknowledged the economy is strong but highlighted potential supply chain issues caused by tariffs as a significant challenge. Powell discussed re-evaluating the Fed’s policy framework in the current environment, emphasizing the commitment to the 2% inflation target. Their remarks did not offer explicit optimism or signals of immediate rate cuts, aligning with market probabilities suggesting the Fed will likely wait for more data.
Commodity Trends: Oil prices fell due to expectations of increased supply potentially from an Iran nuclear deal. Gold prices rose as a safe haven asset.

Company Specific News:

UNH (UnitedHealth Group): Stock fell sharply (17-20%) on WSJ reports of a DoJ investigation into Medicare payment practices (fraud allegations), but rebounded significantly (7-10.93%) after the company denied the investigation.
Apple: Fell (-0.41%) after President Trump publicly pressured CEO Tim Cook to increase manufacturing in the US instead of India.
Nvidia: Declined slightly (-0.38%) despite news of significant investment from UAE including orders for 500,000 GPUs and a 5GW AI campus project involving US tech companies.
Cisco: Reported strong earnings (beat on EPS $0.96 vs $0.92, Revenue $14.1B vs $14.01B) and positive guidance, stock rose (+4.85%).
Meta: Fell (2%) reportedly due to a WSJ report about delays in its Bismose AI project.
Coupang: Declined slightly (-2.51%) after an earnings miss but was seen as resilient with analysts raising target prices.
China Tech (Alibaba, Baidu, JD.com): Fell significantly (7-7.57% for Alibaba/Baidu) following earnings misses. Increased government surveillance on data centers was also cited as a negative factor.
Coinbase: Dropped (7%) due to news of an SEC investigation into its user metrics reporting and a related cyberattack threat.
Pfizer/Moderna: Both fell (Moderna -1.54%) amid reports of investigations into the timing of their initial COVID-19 vaccine releases relative to the US election.
JP Morgan: Saw gains (0.7%-10%) partly on expectations of easing bank regulations (SLR ratio).
Foot Locker: Surged (+85.7%) following an announcement of a strategic collaboration with Dick’s Sporting Goods.
Walmart: Declined after its earnings call, where the CFO stated that tariff impacts would likely lead to significant price increases starting late this month into June, affecting various goods.
Tesla: Down (-1.4%) following a recent rally. Positive news points: Optims progress, potential Robo-taxi use, and strong Gigafactory Shanghai exports were mentioned. High short interest (57.40%) was noted.

4. Investment Activity (Based on 13F Filings):

Recent 13F filings revealed key investment trends:
Berkshire Hathaway: Held positions in Apple, Amex, Coca-Cola, Chevron, Moody’s. Reduced stake in Bank of America (~7%). Increased exposure to Constellation Brands (beer), Occidental (energy), Sirius XM, and Pool Corp (swimming pool supply – seen as inflation hedge).
David Einhorn (Greenlight): Increased positions in natural resources (Connor Natural Resources, Tenneco Resources), Capri Holdings (luxury), and HP. Reduced holdings in Gold ETF (GLD) and Peloton.
David Tepper (Appaloosa): Significantly cut exposure to Chinese tech (Alibaba, Pinduoduo, JD.com) and Amazon. Increased positions in Meta (~5.7%), Alphabet, and notably doubled stake in Uber (~4%). Added small positions in Corning and TSMC.
Bill & Melinda Gates Foundation: Primarily held existing large positions (Microsoft, Waste Management). Reduced stake in Berkshire Hathaway (~12%).
Third Point: Held a large position in PG&E (utility, inflation hedge). Increased Live Nation and Telephone and Data Systems. Reduced Amazon, similar to Appaloosa, potentially reducing exposure to stocks sensitive to policy/tariff impacts.

5. Market Breadth & Sentiment

Advancing stocks (3,647) outnumbered declining stocks (2,612), a reversal from the previous day.
The Fear & Greed Index remained at 69.
The cryptocurrency market was weak, with Bitcoin slightly down and other coins like Ripple and Solana seeing larger declines.