On Tuesday, May 20, 2025, U.S. stock markets ended slightly in the red, breaking a six-day winning streak. The S&P 500 slipped 0.4%, while the Dow Jones lost 0.3%, and the Nasdaq declined by 0.4%.
Despite this dip, the broader market remains strong, with the S&P 500 posting gains in 17 of the last 22 sessions.
Investor worries about the U.S. fiscal outlook resurfaced following a Moody’s downgrade and a controversial congressional spending proposal. Treasury yields continued to rise:
Analysts see these increases as signs of declining confidence in U.S. debt, especially in light of projected deficits under President Trump’s proposed tax cuts.
Federal Reserve officials also flagged policy uncertainties. Raphael Bostic, President of the Atlanta Fed, suggested the central bank may delay rate cuts due to trade and fiscal risks.
Among the Magnificent Seven tech giants, () stood out as the day’s only gainer. CEO Elon Musk reassured investors during a Bloomberg TV interview, stating he plans to stay at the helm of Tesla for at least five more years.
Musk also indicated he will reduce his political spending, shifting his focus back to Tesla operations. His statement helped stabilize sentiment around the stock, which has faced a turbulent year.
() was the breakout performer of the day. Known for brands like Arc'teryx and Wilson, the company saw revenue jump 23% to $1.47 billion in the last quarter.
It also raised its full-year guidance, now expecting 15–17% revenue growth versus the earlier 13–15% estimate. The revision assumes current tariff levels, 30% on Chinese goods and 10% elsewhere, remain unchanged.
() reported $39.9 billion in quarterly revenue, exceeding estimates. A sharper-than-expected drop in comparable sales and flat guidance, factoring in tariffs and supply chain changes, ultimately caused the stock to fall.
The retailer also confirmed its strategy of moving production away from China and working with suppliers to avoid raising consumer prices.
() slipped after CEO Jensen Huang warned that U.S. export controls could cut $15 billion from revenue. At the same time, he opened Nvidia's AI server platform to competitors.
() gained after Evercore ISI upgraded the stock and increased its price target.
(), a global leader in semiconductor-based connectivity solutions for AI and cloud infrastructure, announced a collaboration with NVIDIA to deliver scale-up connectivity solutions for the new NVIDIA NVLink Fusion ecosystem.
() stock price encountered a 4.53% decline, reaching $42.76 during Tuesday's session.
() added to Monday’s 8% rally, recovering a substantial part of last week’s losses. The healthcare giant remains in focus as investors rotate into defensive sectors amid macro uncertainty.
Elsewhere, central banks in China and Australia cut rates to soften the economic impact of U.S. tariffs. Meanwhile, hopes for a new Iran nuclear deal faded as Tehran showed no willingness to curb uranium enrichment, casting doubt on potential relief in global oil supply.
U.S. crude oil prices edged lower, while the EUR/USD pair traded slightly higher at 1.1280.
Markets are watching Wednesday’s $16 billion Treasury auction of 20-year bonds, a critical test of investor appetite amid debt ceiling drama and rising yields.
Additionally, key earnings from () and () may give further insight into consumer resilience and the broader retail environment.
After a strong stretch, Wall Street paused amid rising bond yields and fiscal concerns.
Tesla and Amer Sports offered rare bright spots, while Home Depot (HD) and Nvidia (NVDA) fell short of expectations. Investors remain cautious ahead of upcoming debt sales and retail earnings.
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