Stock Market Ends Minimally Adjusted on May 9, 2025; Traders Anticipate Trade Negotiations Results from US and China

Stock Market Ends Minimally Adjusted on May 9, 2025; Traders Anticipate Trade Negotiations Results from US and China

Friday's Market Recap: Trade Highs and Lows

Stocks showed a mixed bag on Friday, with tariff talks taking center stage once again. The Dow Jones, S&P 500, and Nasdaq Composite saw a slight dip, clawing back after two consecutive days of gains. Yet, the tech-heavy Nasdaq managed to eke out a fractional rise.

The day's trading took place against the backdrop of anticipated trade talks between top US and Chinese officials in Switzerland, scheduled for this weekend. President Trump predicted the discussions could be "substantive" with the possibility of lowering tariffs on Chinese goods if discussions go well.

Earlier in the week, stocks had soared following President Donald Trump's announcement of a trade agreement with the UK and expressing optimism about future deals with China. However, the major indexes posted losses for the week, ending a three-week winning streak.

Meanwhile, a gathering of Federal Reserve officials provided valuable insights into the state of the economy. The Fed's policy committee, citing concerns from President Trump, chose to leave rates unchanged on Wednesday. Fed Chair Jerome Powell cited the rising risks of higher inflation and unemployment due to trade tensions but emphasized the need for further data before adjusting monetary policy.

In the corporate world, cybersecurity provider Cloudflare soared after reporting revenue that topped estimates, thanks to a monumental contract worth over $100 million. Affirm Holdings plummeted after issuing a disappointing revenue outlook for the current quarter. Stock buyback plans were a hot topic for Lyft and Insulet, resulting in significant share price swings for both companies.

The digital currency, Bitcoin, continued to climb higher, surging over $100,000 for the first time since February. After brief dips, the cryptocurrency rebounded to $103,000 by late afternoon trading.

Overseas, oil prices rose, with West Texas Intermediate futures topping $61.05 per barrel, amid a four-year low set last week. The yield on the benchmark 10-year Treasury note saw a slight uptick, while the U.S. Dollar Index dropped 0.2%.

Let's break down some of the key movers from the S&P 500:

Decliners

• Akamai Technologies (AKAM) shares took a nearly 11% hit after lowering its price target on the cybersecurity and cloud computing company. The stock ended the day just above $76.
• Expedia Group’s (EXPE) shares dived over 7% after delivering disappointing first-quarter results and lowering its full-year outlook due to weak U.S. travel demand.
• TKO Group Holdings (TKO), parent of World Wrestling Entertainment and Ultimate Fighting Championship, fell 5.5% after earnings missed expectations, yet the company raised its full-year revenue forecast.

Advancers

• Share prices of insulin pump maker Insulet (PODD) skyrocketed by 21% following strong first-quarter results and a lifted full-year revenue outlook.
• Microchip Technology (MCHP) jumped 12.6%, with several analysts raising price targets on the chipmaker's better-than-expected outlook.
• Tesla (TSLA) shares climbed 4.7%, extending a winning streak for the third straight week amid optimism surrounding new U.S. trade deals.

Sources:

[1] Tariff reductions between the U.S. and China[2] First-ever joint US-China trade statement in years[3] U.S.-China Trade War Facts & Timeline[4] Market Analysis: US-China Trade Deal Boosts Global Stocks

1. Despite tariff talks remaining a focal point, the tech-heavy Nasdaq still managed to see a minimal increase, hinting at the ongoing interest in the stock-market.
2. Bitcoin, a digital currency, surged past $100,000 for the first time since February, demonstrating the allure it continues to hold for crypto traders.
3. Crypto exchange platforms witnessed increased activity as traders took advantage of the technical analysis associated with Bitcoin's recent climb.
4. Alongside Bitcoin, other cryptocurrencies such as tokens showed growth, reinforcing the investment potential in the crypto arena.
5. ICOs (Initial Coin Offerings) may benefit from this renewed interest in crypto, offering startup companies an opportunity to raise capital in the finance sector.
6. Simultaneously, cybersecurity providers like Cloudflare, who recently reported strong earnings, remain crucial in safeguarding finance-related transactions on both the stock-market and crypto exchanges.

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