Market Recap – Friday, May 9, 2025
A Week of Trade Talks, Tariffs, and Mixed Earnings Reports
Stocks had a mixed finish today. The Dow went up a bit, but the S&P 500 and Nasdaq ended flat or slightly down. After two weeks of gains, the S&P 500 and Nasdaq dropped this week. Big tech stocks were a bit all over the place, but Tesla did well. Sectors like energy, telecoms, real estate, and utilities saw gains, while trucking, steel, and food stocks were weak.
Trade Talks and Tariffs:
Trade talks between the US and China are still a big focus. There are reports that tariffs could be reduced soon. President Trump mentioned that the US might lower tariffs on China below 60%. This news is helping boost the stock market, but some experts worry that many of the positive news has already been priced into the market.
What the Fed Is Saying
The Federal Reserve (Fed), which controls US interest rates, is still being cautious. Some of its officials said that tariffs might continue to affect inflation, and the economy might slow down. The Fed is waiting to see how things play out before making any decisions about changing interest rates.
Earnings and Stock Performance
Some companies reported good earnings today, like Lyft, which saw its stock go up 28%. Other companies like Trade Desk and Microchip Technology also reported strong earnings. On the flip side, companies like Iovance Biotherapeutics saw their stock prices drop after missing expectations.
Consumer Sentiment
Consumers are feeling more cautious. A survey showed that many people are worried about rising prices and the impact of tariffs. People are starting to cut back on spending, especially high-income consumers. This is something to watch in the coming months as it might affect how much businesses earn.
Here’s Our Take
The market remains volatile with ongoing trade tensions and concerns about inflation and economic growth. While tariffs could continue to weigh on the economy, some sectors, such as energy, telecoms, and tech hardware, appear to be benefiting from current conditions. The expected tariff de-escalation is providing a level of optimism, but much of the positive news may already be priced in. As always, investors should keep an eye on the economic data next week, including CPI and retail sales, which could provide further insights into inflation trends and consumer behavior. It’s a good time to remain cautious but stay diversified, with sectors like technology, real estate, and utilities continuing to offer growth potential despite broader macroeconomic uncertainties.
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