U.S. Market Wrap-Up: May 24, 2025

Market Overview

U.S. equities saw a broad decline on Friday. President Donald Trump’s tariff comments created significant pressure. Higher 10-year Treasury yields also contributed. Further, reduced September rate cut expectations fueled concerns. Overall, market sentiment turned highly cautious.

Major Indices

The Dow Jones Industrial Average dropped 0.61%. It closed at 41,603.07. This marked its fourth consecutive daily fall. The Dow declined 2.07% for the week.

The S&P 500 Index lost 0.67%. It ended the day at 5,802.82. This reflected broader market weakness.

The Nasdaq Composite Index fell 1%. It closed at 18,737.21. This technology-heavy index saw a 1.68% decline over five days.

The Russell 2000 Index slipped 0.28%. It finished at 2,039.85. Small-cap stocks also faced downward pressure.

Key Market Trends & News

Market unease was evident in the VIX. The volatility index surged 10.45% to 22.40. This indicated rising uncertainty and fear.

President Donald Trump’s tariff remarks significantly impacted sentiment. He threatened 50% tariffs on European goods. A 25% tariff on Apple was also mentioned. This warning later extended to Samsung. However, Treasury Secretary Scoccent offered some relief. He hinted at major trade negotiations soon. Thiseased some market fears.

Interest Rates & Bond Market

The 10-year Treasury yield remained elevated at 4.51%. This reflected ongoing bond market uncertainty. Earlier, it eased to 4.509% after Scoccent’s comments.

Fed rate cut expectations further diminished. The probability of a September rate cut fell to 48%. Just one or two rate cuts by December seemed less likely. This fueled fears of a prolonged high-interest rate environment.

Commodities Market

A “sell America” trend persisted. The Dollar Index declined 0.86% to 98.99. This dollar weakness propelled other asset classes.

Gold prices rose significantly, up 1.95%. It reached $3,359.20 per troy ounce. Similarly, crude oil prices climbed 0.83%. Oil settled at $61.71 per barrel. Investors sought traditional safe havens.

Major Tech Stocks Performance

Technology stocks were notably weak. Apple plunged over 3%. Trump’s direct tariff comments specifically targeted Apple. This temporarily pushed Apple below the $3 trillion valuation.

Tesla fell 0.50%, breaking the $340 level. This happened despite a positive outlook from Dan Ives. Ives projected a potential $2 trillion valuation. He cited autonomous driving and robotaxi excitement. However, broader market weakness weighed on Tesla. Elon Musk’s Grok controversy also played a role. Tesla’s short interest remained high at 59.2%.

Other tech giants also struggled. Amazon, Meta, Google, Microsoft, and Nvidia each fell over 1%. Visa and Mastercard dropped too. This followed news of European antitrust investigations.

Conversely, defensive stocks performed relatively well. Walmart, P&G, Coca-Cola, AT&T, and Verizon held strong. Utility stocks especially gained strength. This followed Trump’s energy policy executive order.

In semiconductors, most stocks fell. However, Nvidia limited its loss to 1.16%. Oracle’s $40 billion investment helped. This investment targets data center construction and GPU demand.

Automotive stocks saw widespread declines. Tesla, Ford, GM, Xpeng, Rivian, and Lucid all fell. Higher interest rates, trade disputes, and EV tax credit expiry impacted them.

Market Sentiment & Flows

The market showed significant risk-off sentiment. Early sharp declines recovered slightly by afternoon. However, pre-weekend selling resurfaced. This was driven by the upcoming Memorial Day holiday. U.S. markets will be closed Monday.

Cryptocurrency markets also saw weakness. Bitcoin, Ethereum, and Ripple each dropped 2-3%. This reflected broader market caution.

Upcoming Key Economic Indicators & Events

The next week holds several crucial events. These could significantly influence market direction.

Monday, May 27: U.S. stock markets are closed for Memorial Day. Federal Reserve Chair Jerome Powell is scheduled to speak. Market impact may be limited due to the holiday.

Tuesday, May 28: The Conference Board Consumer Confidence Index is released. Also, short-term Treasury auctions are scheduled.

Wednesday, May 29 (After Market Close): Key earnings reports are due. Nvidia and Salesforce will announce their results.

Thursday, May 30: The revised U.S. Q1 GDP report is released. RBC Royal Bank of Canada and Costco also report earnings.

Friday, May 31: Critical inflation data is expected. The Personal Consumption Expenditures (PCE) Price Index will be released. The final Michigan Inflation report is also due.

Conclusion & Market Outlook

Friday’s market was turbulent. Trump’s surprising tariff comments sparked concerns. Elevated interest rate worries also weighed on investors. Investor sentiment remained largely subdued.

Next week promises continued volatility. Major corporate earnings are anticipated. Critical economic data releases will also shape markets. Investors should approach the coming week cautiously.

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