Market Snapshot for Wednesday 5/21/2025
- S&P 500 – 5,844.61 (-1.61%)
- Dow Jones Industrial Average – 41,860.44 (-1.91%)
- NASDAQ – 18,872.64 (-1.41%)
Market Performance
The stock market ended lower again on Wednesday as U.S. debt fears escalate and treasury yields headed higher.
Here’s a more detailed breakdown of what may be scaring traders:
- U.S. Debt and Deficits:
Investors are increasingly worried about the size of the U.S. debt and the potential for further increases, particularly in the wake of President Trump’s proposed tax bill. The US national debt is substantial, currently exceeding $36 trillion.
- Rising Treasury Yields:
Higher interest rates on government bonds make them more attractive to investors and can push down the prices of other assets like stocks. Treasury yields surged, especially in the long-term end of the curve. The 10-year yield rose to 4.595%, exceeding the psychological threshold of 4.5%, while the 30-year yield reached 5.089%, its highest level since October 2023.
- Disappointing Earnings Reports:
Target and other retailers reported disappointing earnings today, adding to investor uncertainty about the economic outlook and the health of consumer spending.
- The Trade War:
While there has been a temporary pause in trade tensions, recent developments suggest a potential escalation, which also contributes to investor anxiety.
- The S&P 500’s 6-day winning streak had ended:
The S&P 500’s recent rally came to an end, which can be seen as a natural correction after a period of gains.
Economic Takeaways
Interest rates have jumped to their highest level since February.
- The average rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.92% from 6.86%
- Mortgage rates are now very close to where they were at the same time last year.
- Applications for mortgages to buy a home and to refinance both fell 5% for the week.
“Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,” said Mike Fratantoni, senior vice president and chief economist at the MBA.
President Trump Gets a $400M Gift from Qatar
The Pentagon has accepted a $400 million luxury Boeing 747 jet from Qatar to be used as Air Force One, the president’s plane.
“The Secretary of Defense has accepted a Boeing 747 from Qatar in accordance with all federal rules and regulations,” Sean Parnell, the chief Pentagon spokesman said in a May 21 statement. “The Department of Defense will work to ensure proper security measures and functional-mission requirements are considered for an aircraft used to transport the President of the United States.”
The president will transfer it to his library after his term ends. It will require extensive renovation to become executive aircraft.
Sen. Jack Reed, the ranking member of the Armed Services Committee, called on the Pentagon inspector general to investigate what he called a “brazen attempt to evade constitutional limitations on the acceptance of personal gifts from foreign governments without congressional approval.”
The Big Beautiful Bill May Get Voted on Tonight
House Speaker Mike Johnson unveiled changes to President Trump’s “big beautiful bill” Wednesday.
This included a generous deduction for state and local taxes (SALT) with more changes to the package possible as fiscal conservatives hold out for additional concessions.
The higher SALT deduction of $40,000 annually is an increase from the current $10,000 cap and from Johnson’s initial offer of $30,000.
Johnson confirmed Wednesday that a SALT deal had been struck with a change that is set to be formalized in a “manager’s amendment” in the House’s Rules Committee.
Speaker Johnson has told reporters his goal remains “to hold to the schedule,” suggesting a vote remains possible as early as tonight.
Oil (WTI Crude)
- WTI Crude: As of today, May 21, 2025, WTI Crude is trading at $62.85 per barrel, which is a 0.58% increase.
- Brent Crude: Brent Crude is currently priced at $65.52 per barrel, representing a 0.17% increase.
Bitcoin (BTC)
- Bitcoin rose to a new all-time high on Wednesday, breaking its January record.
- The price of the leading cryptocurrency was last higher by 2% at $108,955.10, according to Coin Metrics. Earlier, it rose as high as $109,857.
Gold
- As of May 21, 2025, the spot price of gold is around $3,319 per ounce. This represents a decrease compared to the record high in April, but it’s still significantly higher than at the beginning of the year.
Top Gainers
Several stocks experienced significant gains. Some of the top gainers included:
- WeRide, Inc. (WRD) soared 21.42%
- Dycom Industries, Inc. (DY) moved higher by 15.76%
- CoreWeave Inc. (CRWV) exploded 19%
- XPeng, Inc. (XPEV) surged 13%
- Arcellx, Inc. (ACLX) rose 8.26%
- GDS Holdings Limited (GDS) moved up 7.51%
- Hesai Group (HSAI) jumped 7.46%
- Orla Mining, Ltd. (ORLA) spiked 7.02%
- Weibo Corporation (WB) moved up 4.28%
- CleanSpark, Inc. (CLSK) surged 4.23%
Top Losers
The top US stock losers today, based on percentage change included:
- Wix.com Ltd. (WIX) moved lower 16.18%
- V.F. Corp. (VFC) moved lower 15.80%
- Fair Isaac Corp. (FICO) sank 15.74%
- Garrett Motion, Inc. (GTX) fell 13.03%
- Modine Manufacturing (MOD) moved down 11.66%
- The AES Corp. (AES) moved lower 9.88%
- Oscar Health, Inc. (OSCR) sank 9.78%
- Newmark Group, Inc. (NMRK) dragged 9.75%
Notables
- AT&T (T) has bought Lumen’s consumer fiber business for $5.75B.
- Reports revealed that Nike (NKE) would be raising its prices and returning to selling on Amazon.
- Nvidia-backed CoreWeave (CRWV) saw a 19% gain on Wednesday after a $2B debt offering.
- UnitedHealth (UNH) fell after an HSBC downgrade.
- Steve Madden sued Adidas Adidas over its alleged effort to stop the company from selling fashion sneakers with two non-parallel bands.
- WSJ revealed that Walmart is cutting 1,500 jobs to lower expenses.
What to Watch Tomorrow
On Thursday investors will receive fresh economic data, including weekly jobless claims, US existing home sales, and the Institute for Supply Management’s Purchasing Managers’ Index (PMI).
Pump Radar
Stock Alerts