Market Recap – Tuesday, May 20, 2025
Quiet Trading Day with Fiscal Policy and Trade Focus Amid Mixed Sector Performance
Stocks closed mostly lower today, with the Dow dropping by 0.27%, the S&P 500 down 0.39%, and the Nasdaq falling 0.38%. The Russell 2000, which tracks smaller companies, managed to end slightly higher by 0.05%. The S&P 500 broke a six-day streak of gains, taking a pause after its strong performance last week.
Sector Performance:
Big tech companies generally went down today, except for Tesla, which was helped by positive comments from CEO Elon Musk. Other industries, like healthcare, pharma, media, and smaller companies, did better. Treasury bond yields remained mostly the same, and gold and Bitcoin prices went up a bit, while oil prices stayed flat.
What’s Driving the Market?
There wasn’t much new news driving the market today. However, the focus remained on U.S. government policies, with President Trump pushing for Republicans to support a new spending and tax bill. Home Depot reported mixed results, with sales doing well despite challenges like bad weather. Trade concerns about tariffs also kept investors cautious.
What the Fed is Saying:
Federal Reserve officials continue to say they’ll wait and see how things develop before making any big decisions about interest rates. There’s no big change expected in the short-term, but upcoming reports could offer more clues.
Company News:
Home Depot’s earnings were a bit mixed, but the company reaffirmed its guidance and said it wouldn’t raise prices due to tariffs. Other companies like Warby Parker and Moderna saw positive movement after announcing partnerships or positive updates.
Big Gainers Today:
QBTS-US (D-Wave Quantum): Up by 25.9% after announcing its new quantum computing system is now available.
AGYS-US (Agilysys): Up by 22.1% after reporting strong earnings and raising its future outlook.
AS-US (Amer Sports): Up by 19.1% after good earnings and stronger sales growth expectations.
Big Decliners Today:
EXP-US (Eagle Materials): Down by 8.8% after missing earnings expectations and being affected by bad weather.
SDGR-US (Schrödinger): Down by 8.6% after the company’s CFO resigned.
VIK-US (Viking Holdings): Down by 5% due to concerns about lower pricing for future bookings.
Looking Ahead:
There’s not much major news this week, so the focus will remain on Thursday’s reports about the economy and any updates on trade talks. We’ll also hear more from the Federal Reserve soon, which could affect market expectations.
Here’s Our Take
The market had a quieter day with mixed results, as most major indices closed lower, while some sectors like healthcare and smaller companies performed better. Investors are closely monitoring U.S. government policies, especially with President Trump pushing for support of a new spending and tax bill, and ongoing concerns about tariffs. While big tech struggled, sectors like healthcare, pharma, and media saw positive movement. Looking ahead, the next significant events to watch will be Thursday’s economic reports and any updates from the Federal Reserve, which could influence market expectations.
P.S. Know someone who'd appreciate smarter stock insights and clearer investing strategies? Forward this email or share this link: subscribe.triplegains.com