Stock Market Update for May 15, 2025: S&P 500 Advances for a Fourth Consecutive Day; Nasdaq Streak Ends
Stocks continue their wild ride, with some indexes extending their winning streaks while others take a dip. The S&P 500 scored a fourth straight day of gains, thanks to a buoyant mood among investors as they sifted through a smorgasbord of earnings reports and key economic indicators. The Dow Jones Industrial Average also saw a 0.7% boost, snapping a three-day losing streak, while the Nasdaq Composite slipped 0.2%, ending a six-day winning streak.
The ongoing surge in stocks can be attributed to dissipating global trade tensions and upbeat U.S. economic data, despite lingering concerns about the potential impacts of tariffs on inflation, economic growth, and corporate profits. Recent reports on April retail sales, weekly jobless claims, and inflation were all in line with expectations.
Tech giants like Amazon, Meta Platforms, Apple, Tesla, and others have been at the forefront of this rally. However, on Thursday, most tech heavyweights took a tumble, with Amazon and Meta Platforms each sinking more than 2%, Amazon due to delayed AI model launch rumors, and Meta due to reporting delays. Apple, Tesla, Nvidia, and Alphabet also saw share price drops, while Microsoft and Broadcom managed to hang on to gains.
Shares of Dow component Walmart recovered from an early 5% plummet after reporting better-than-expected quarterly profits but missed revenue estimates. UnitedHealth Group, another Dow member, plunged 11% following a report that the U.S. Department of Justice is investigating the company for potential Medicare fraud. The health insurer's stock had already been on a downward spiral this week, after announcing the departure of its CEO and suspending its full-year guidance.
Cisco shares jumped nearly 5% to lead Dow gainers after the networking-equipment provider reported earnings that beat expectations. Deere & Company saw a 4% rise to hit a record high after reporting strong earnings. Shares of Alibaba slid 7.5% after the Chinese e-commerce giant's disappointing results.
The 10-year Treasury note yield hovered around 4.43%, having dipped from 4.53% the previous day, its highest level in nearly three months. The U.S. dollar index slipped 0.2% to 100.83. Gold futures climbed 1.7% to $3,245 an ounce, reversing recent losses as risk appetite soured. West Texas Intermediate futures slipped 2.3% to $61.70 per barrel, continuing a volatile run for the commodity. Bitcoin closed the day at $103,500, recovering from an earlier low of $101,400.
In the top S&P 500 movers of the day, Steris led the way with an 8.5% surge, thanks to crushing earnings reports and revenue growth across its health care, applied sterilization technology (AST), and life sciences segments. Walmart's share price dip notwithstanding, fellow retailer Dollar General gained 6.0%, thanks to analyst predictions that stores like Dollar General and Dollar Tree could raise prices amid growing competition. Shares of hospital operator HCA Healthcare advanced 4.9% after receiving a positive analyst nod for strong demand and effective cost management.
On the other hand, Fiserv shares dropped 16.2% following reports that growth for its Clover point-of-sale platform is unlikely to improve this quarter. UnitedHealth Group shares tanked 10.9% due to a Department of Justice investigation into possible Medicare fraud. First Solar shares slipped 3.5%, despite a congressional proposal suggesting relatively positive outlooks for solar providers.
In related news, Applied Materials reported quarterly revenue that missed analyst expectations as sales in China declined, leading to share price drops in extended trading. Meta is reportedly pushing back the launch of its "Behemoth" AI model amid concerns about its improvement compared to previous iterations. Wall Street regained its risk appetite this week, causing AI stocks like Nvidia, Palantir, and Advanced Micro Devices to surge in value. However, these same stocks have become popular among traders looking to profit from potential pullbacks, thanks to their high short positions.
Fiserv's CFO said that Clover growth this quarter would remain flat, repeating earlier headwinds that have caused the stock to plummet more than 27% since the company revealed first-quarter Clover volume growth of 8% year-on-year compared to 14% in the final quarter of 2024. UnitedHealth's stock has been on a downward trajectory for the past month, hitting its lowest level in over five years and shedding more than 50% of its value during this period.
- Amidst the highs and lows of stocks, the crypto market also showed signs of volatility, with bitcoin recording a closure at $103,500, recovering from an earlier low of $101,400.
- In the world of technology, Meta Platforms is reportedly pushing back the launch of its "Behemoth" AI model due to concerns about potential improvements compared to previous iterations.
- Within the realm of finance and business, Applied Materials reported missed quarterly revenue expectations due to sales decreases in China, causing shares to drop in extended trading.
- The trading landscape for crypto, specifically bitcoin, could potentially resemble that of stocks, with traders seeking to profit from potential pullbacks due to high short positions.
- The sports industry is also leveraging technology for growth, as AI stocks like Nvidia, Palantir, and Advanced Micro Devices surge in value due to Wall Street's increased risk appetite.
- While tech giants like Amazon and Meta Platforms faced dips on Thursday, others like Cisco jumped nearly 5% as the networking-equipment provider reported earnings that exceeded expectations, showcasing the diversity within the technology sector.
