Market Snapshot for Tuesday 5/20/2025
- S&P 500 – 5,940.46 (-0.39%)
- Dow Jones Industrial Average – 42,677.24 (-0.27%)
- NASDAQ – 19,142.72 (-0.38%)
Market Performance
The stock market ended lower today, snapping a 6-day winning streak for the S&P 500. A combination of factors including rising Treasury yields and a pullback from recent gains led to the decline. Some analysts are suggesting a “risk-off” sentiment might emerge, with investors becoming more cautious and less willing to take on new investments.
While the Moody’s downgrade of the U.S. credit rating this past Friday didn’t directly impact the market on Monday, it did contribute to concerns about the U.S. debt and fiscal health. Comments from JPMorgan CEO Jamie Dimon on tariffs also escalated economic worries.
Economic Takeaways
Tariffs could have ‘significant’ impact on economy says St. Louis Federal Reserve president Alberto Musalem.
Musalem said that even after President Trump’s 90-day trade truce with China, tariffs at their current levels could have a “significant” impact on the economy in the short term. He noted that he believes central bank monetary policy is “currently well-positioned” to respond to the impact of changes in trade policy, immigration, tax policy, and deregulation. “The range of possible economic outcomes for the next few quarters is wide,” Musalem added. “Economic policy uncertainty is unusually high.”
“On balance, tariffs are likely to dampen economic activity and lead to some further softening of the labor market,” he said. “Tariffs are also likely to have direct one-off effects on the prices of imported final goods, indirect effects on the prices of domestically produced goods and services, and possibly second-round effects on inflation.”
Jamie Dimon, CEO of JPMorgan Chase, made his own warnings about an “extraordinary amount of complacency” in the market, particularly concerning the possibility of higher inflation and even stagflation.
The JPMorgan Chief shared concerns that the market hasn’t fully priced in the potential risks from tariffs and other factors. Dimon also anticipates a potential credit crunch and believes central banks might be underestimating the severity of the situation
“We have huge deficits; we have what I consider almost complacent central banks,” Dimon said. “You all think they can manage all this. I don’t think they can,” he said.
“My own view is people feel pretty good because you haven’t seen effective tariffs,” Dimon said. “The market came down 10%, [it’s] back up 10%. That’s an extraordinary amount of complacency.”
Where is the Market Heading?
Some analysts on Wall Street are cautioning that the next move in markets might not be definitively higher.
“I do think there is some complacency [in markets],” Charles Schwab chief investment strategist Liz Ann Sonders told Yahoo Finance.
“We may be at that point where the setup, from a sentiment perspective, suggests that the market could have some downside if we get a negative catalyst,” Sonders said. “And that’s really the best way to think about this market. It’s hard to judge it based on what policy announcements are going to be and when they’re going to come. That’s a fool’s errand.”
“Equity markets have reacted with unwarranted optimism, overlooking the persistent economic drag posed by elevated tariffs,” EY chief economist Gregory Daco wrote in his own note to clients.
Daco lowered his odds of a US recession in the next 12 months to 35% from a prior projection of 45% prior to the delay of tariffs on China. According to Daco however, US economic growth is approaching “stall speed” by the fourth quarter, with GDP rising just 0.6% compared to the year prior in the final three months of 2025.
“While the near-term outlook is more constructive, risks remain tilted to the downside,” Daco said.
Oil (WTI Crude)
- Brent crude rose above $66 a barrel while West Texas Intermediate surged as much as 3.5% before paring gains. A CNN report found that new US intelligence suggests Israel is preparing for a potential strike on Iranian nuclear facilities.
“This is the clearest sign yet of how high the stakes are in the US Iran nuclear talks and the lengths Israel may go to if Iran insists on maintaining its commercial nuclear capabilities,” said Robert Rennie, head of commodity and carbon research for Westpac Banking Corp. “Crude will maintain a risk premium as long as the current talks appear to be going nowhere.”
Bitcoin (BTC)
- Bitcoin (BTC) is trading at approximately $106,729 USD, reflecting a daily increase of about 0.79%.
- The digital currency is inching closer to its all-time high price of $108,786. At nearly $107,000, Bitcoin is now less than 2% away from that price.
- The coin has rebounded significantly since falling to under $75,000 in early April.
Other Cryptos
- Ethereum has surged by 58% over the last 30 days, Dogecoin is up 45% and Solana has risen by nearly 23%.
Gold
- As of May 20, 2025, the live gold spot price for 1 ounce is $3,215.04.
Top Gainers
Several stocks experienced significant gains. Some of the top gainers included:
- Regencell Biosciences (RGC) soared 27.91%
- D-Wave Quantum, Inc. (QBTS) moved higher by 25.93%
- Akero Therapeutics, Inc. (AKRO) surged 24.72%
- Agilysis, Inc. (AGYS) rose 22.10%
- Amer Sports, Inc. (AS) jumped 19.05%
- Warby Parker, Inc. (WRBY) cruised 15.63% higher
- Peloton Interactive, Inc. (PTON) moved higher 6.84%
- Moderna, Inc. (MRNA) moved up 6.06%
Top Losers
The top US stock losers today, based on percentage change included:
- Eagle Materials, Inc. (EXP) moved lower 8.79%
- Fair Isaac Corporation (FICO) moved lower 8.11%
- ZTO Express (Cayman) (ZTO) sank 8.04%
- Vipshop Holdings Limited (VIPS) fell 7.18%
- Dutch Bros, Inc. (BROS) moved down 6.19%
- Trip.com Group Limited (TCOM) moved lower 5.54%
- Oklo, Inc. (OKLO) sank 5.44%
Notables
- Warby Parker soared around 18% on Tuesday after Google said it is teaming up with the eyeglasses and contact lens retailer to develop AI-powered smart glasses.
- At the Qatar Economic Forumon Monday, Tesla CEO Elon Musk took on criticism about his role in the US government’s controversial Department of Government Efficiency (DOGE) and his role as chief of Tesla.
Major U.S. Companies Reporting Tomorrow
Target (TGT), TJX (TJX), and Lowe’s (LOW) will report their earnings tomorrow.
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