SVET Markets Weekly Update (May 19–23, 2025)
On Week 21, the world’s trade conflict dominated the news with the S&P going down 2%, the Dow — 2.2%, and the Nasdaq declined 1.6%. At the same time BTC reached a new ATH energizing crypto-traders.
On Monday, stocks recovered from early downs, as the S&P rose, aided by declining Treasury yields. The Dow gained, while the Nasdaq edged up slightly. Markets reacted to Moody’s downgrade of the America’s credit rating to Aa1, citing rising deficits, which pushed the 10-year yield near 4.5% and the 30-year above 5%. Treasury Secretary Scott Bessent dismissed concerns and called for trade talks during the tariff pause. Energy, tech, and consumer sectors underperformed, while healthcare and utilities limited losses. Apple and Tesla fell, but UnitedHealth surged 8.2%. Crypto market remained volatile, with BTC and ETH holding steady.
On Tuesday, stocks fell, ending the S&P 500’s six-day rally with drop, while the Nasdaq and the Dow also slipped. The decline followed earlier gains fueled by trade optimism and Trump’s tax and tariff proposals, but uncertainty over trade talks and political pushback on taxes dampened sentiment. Tech stocks dragged the market lower, with Alphabet, Nvidia, Meta, and declining, though Tesla rose after Musk affirmed his CEO role. Mixed Home Depot earnings, warnings from JPMorgan, and Fed concerns over tariffs added pressure. Crypto markets were mixed.
On Wednesday, the Dow, S&P and the Nasdaq fall as rising Treasury yields reflected investor concerns over a federal budget plan that may widen the deficit. The bill faced opposition from some Republicans pushing for higher state and local tax deductions, potentially hindering Trump’s tax agenda. Markets await jobless claims data for labor market clues. In corporate updates, Lumen Technologies jumped after AT&T agreed to buy its fiber business, while Snowflake and Urban Outfitters rose on strong earnings. Cryptocurrencies also gained.
On Thursday, Equities ended nearly flat as investors balanced Trump’s tax-and-spending bill — featuring cuts and higher defense spending — against worries over the growing deficit. The S&P 500 and Dow dipped slightly, while the Nasdaq rose. The bill, which could add trillions to the national debt, faces Senate review, with the CBO estimating a $4 trillion cost. Treasury yields climbed, with the 30-year hitting 5.14%, a 2023 high. Solar stocks dragged energy down, while communication services gained. PMI rose to 52.1, showing economic resilience despite mixed housing and labor data. BTC retreated after a record high, pulling crypto markets lower.
On Friday, stocks went down as Trump’s tariff threats against Apple and the EU reignited trade fears. Apple shares dipped below a $3 Trillion valuation, after Trump proposed a 25% tariff on iPhones not made in America. He also suggested a 50% tariff on EU imports from June 1, worsening trade tensions. Tech stocks like Micron, Qualcomm, and Nvidia fell over 1%, leading the decline. The drop came just as optimism grew over paused tariffs and progress in UK and China trade talks. The crypto market also followed stocks lower, with BTC correcting from its ATH.
On Week 22, markets face potential volatility as Trump’s renewed tariff threats on the EU and Apple loom. Investors await Fed commentary, FOMC minutes, and key U.S. data including PCE inflation and Q1 GDP. Globally, focus turns to central bank decisions in South Korea and New Zealand, European inflation reports, and Q1 GDP figures from major economies. Japan and Germany will also release key economic indicators.