U.S. Market Wrap-Up: May 23, 2025

 

Market Overview

Today, the stock market attempted a rebound. However, it gave back gains late in the session. Overall, movements were unstable. Major indices closed flat or slightly down. The market continues to face uncertainty.

Major Indices

The Dow Jones Industrial Average closed at 41,859.09. Importantly, it shifted from flat to slightly negative territory. Furthermore, it gave back about 0.5% of its intraday gains. The S&P 500 index, meanwhile, reached 5,842.01. It fell 0.04%, showing slight weakness. Although it had rallied almost 1% intraday, it then declined. Ultimately, it failed to reclaim the 5,900 level.

The Nasdaq Composite closed at 18,925.73. Notably, it rose 0.28%, but its gains significantly narrowed. Indeed, it had breached the 19,000 mark three times intraday. However, profit-taking subsequently pushed it back down. The Russell 2000 index, similarly, stood at 2051.74. It gained 0.25%, yet also surrendered some advances.

Key Market Trends & News

 

Today’s market was influenced by several factors. First, the House tax cut bill passed by Republicans. This, in turn, includes state tax benefits. However, Senate passage remains uncertain. Nevertheless, this news initially had a positive market impact.

Meanwhile, the Trump administration announced visa cancellations. Specifically, this affects foreign students at Harvard. Consequently, the news dominated newspaper front pages. UBS, furthermore, cited rising bond yields. They warned of continued volatility from tariffs and budget issues. Likewise, Ray Dalio and Jamie Dimon voiced similar concerns. They, too, emphasized government debt problems.

Anthropic unveiled its new Claude 4 model. This, as a result, contributed to Amazon and Google stock gains. Google’s upside, however, was limited by antitrust investigation possibilities. Apple, conversely, continued to face smart glass concerns. Indeed, CNBC called Apple “the most worrying stock.” Moreover, Ming-Chi Kuo mentioned new OpenAI-partnered devices.

Solar energy stocks, in contrast, sharply declined. This followed concerns about halted renewable energy funding. The tax cut bill might cause this. Novo Nordisk announced Wegovy price cuts. However, Wall Street’s reaction was negative, pulling the stock down. Hinge Health, notably, surged on its IPO day. TD Bank’s strong earnings and efficiency plans, additionally, boosted its stock.

Interest Rates & Bond Market

U.S. Treasury yields showed volatility. The 10-year Treasury yield surpassed 4.60% intraday. But it closed lower at 4.54%. The 30-year Treasury yield also topped 5.1% intraday. However, it stabilized at 5.04%. Bond market stability helped the stock market recover.

Federal Reserve Governor Christopher Waller made positive remarks. He hinted at possible rate cuts if tariffs reach 10% by July. The probability of a September rate cut remains high at 49.2%. A December double cut is priced at 39.1%. However, elevated bond yields continue to fuel market anxiety.

A New York Fed official discussed liquidity pressure. This stems from the Fed’s balance sheet reduction. It could limit the scope for rate cuts.

Commodities Market

Gold prices fell to $3,290.9 per troy ounce. This represents a 0.68% decline. International oil prices dropped to $60.78. This was a further 1.28% decrease.

Major Tech Stocks Performance

Big tech companies showed mixed performance. Nvidia rose 1.23%. Oppenheimer issued a positive earnings outlook. Expectations for the GB300 also boosted the stock. Tesla climbed 1.92%. Analysts believe the $7,500 tax credit expiry will have less impact. This is due to its existing profitability.

Amazon gained 1.16%. Bill Ackman’s investment news influenced its rise. Google was up 1.69%. Anthropic’s Claude 4 announcement was positive. Microsoft also advanced, helping to support the index.

Apple fell 0.36%. It was the only big tech stock to decline. Concerns about smart glass competition emerged. Alphabet began developing its own smart glasses. This added competitive pressure on Apple.

Quantum computing stocks soared. IONQ jumped 36%. Its CEO stated it could be “the Nvidia of quantum computing.” Rigetti, QBTS, and QBT also saw significant gains. Snowflake surged over 13% on strong earnings. This led to a broader rally in software companies.

Market Sentiment & Flows

The VIX index dropped below 20 intraday. But it climbed back above 22 by market close. Volatility has somewhat decreased, but uncertainty persists. The Fear & Greed Index slightly rose from 66 to 67. Individual investor sentiment improved. Optimism increased, while pessimism decreased.

 

A total of 2,997 stocks advanced. Conversely, 3,219 stocks declined. While more stocks fell, the breadth was better than yesterday. Short sellers in Tesla and Nvidia incurred losses. This is seen as a positive market signal.

 

Upcoming Key Economic Indicators & Events

Tomorrow is Friday. Several key economic indicators are scheduled for release. U.S. building permits will be announced. New home sales data will also be available. Canada will release its April retail sales figures. Corporate earnings reports will continue. Booz Allen Hamilton and Miniso are expected to report.

Conclusion & Market Outlook

Today’s market was a turbulent one. It closed unsteadily despite attempts to rally. Bond yield stabilization is a positive sign. However, high yields and fiscal deficit concerns persist. Big tech and quantum computing stocks performed strongly. Conversely, pharmaceutical and solar stocks declined. The market remains uncertain. Investors should approach with caution.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making investment decisions.