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Anna's Markets Recap

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Saturday, 5:10 AM

May 24, 2025

Good morning news friend! Here is a quick recap of what happened in the markets this week. 📰🌟

What Moved Markets Last Week

April's inflation data, released during the week, initially looked okay. The Consumer Price Index (CPI) rose 0.2% month-over-month and 2.3% year-over-year, the smallest annual increase since February 2021. Core CPI was up 2.8% over 12 months. The Producer Price Index (PPI) for April fell 0.5% from March. These numbers initially helped the market.

The Federal Reserve kept its target interest rate at 4.25%-4.50%. The 10-year U.S. Treasury yield was volatile, starting the week near 4.46%, jumping to 4.58% mid-week on deficit worries, and then settling around 4.51% by Friday.

Growth signs were more worrying. The Conference Board Leading Economic Index (LEI) for the U.S. fell 1.0% in April, after a 0.8% drop in March, hinting at a slowing economy. Retail sales edged up just 0.1% in April, and industrial production was flat.

Consumer sentiment took a nosedive. The University of Michigan's preliminary May reading fell to 50.8, its lowest level ever. This bad news was mostly overshadowed by trade headlines at first but showed underlying consumer worries.

The U.S. federal deficit remained a big concern, especially after Moody's downgrade. President Trump's proposed "One Big Beautiful Bill," aimed at making many 2017 tax cuts permanent, is expected to add trillions to the national debt and made markets nervous all week.

Tech and Growth Stocks

The tech sector had a rough week. Early optimism gave way to anxiety over the federal deficit, rising bond yields, and new tariff threats. The Nasdaq Composite fell 2.5% for the week of May 19-23.

Apple (AAPL): Fell about 6.5% for the week, closing at $195.27. The stock dropped sharply on Friday (3%) after President Trump threatened "at least 25%" tariffs on iPhones not made in the U.S.

NVIDIA (NVDA): Declined roughly 3.2%, ending at $131.29. The stock was technically overbought. NVIDIA announced a collaboration with Navitas Semiconductor for AI data centers.

Microsoft (MSFT): Decreased about 1.9% to $450.25. Its Build 2025 conference featured AI announcements, though some demos reportedly failed. The company also disrupted a cybercrime tool.

Amazon (AMZN): Slipped approximately 2.5% to $200.99. Nike announced it would resume direct sales on Amazon's U.S. platform. Amazon was also reportedly testing AI-powered audio summaries for products.

Meta (META): Dropped about 2.1% to $627.23. An insider sold shares. Meta faced scrutiny over its AI data training plans in the EU but was permitted to proceed from May 27.

Alphabet (GOOGL/GOOG): GOOGL shares rose during the week, closing at $170.83. The positive impact of its I/O developer conference and AI announcements continued.

Tesla (TSLA): Fell about 0.8%, finishing at $339.30. The stock was considered overbought after a recent rally. Wedbush analysts raised their price target, expecting a June launch for fully autonomous Teslas in Austin.

Salesforce (CRM): Declined about 5.2% to $273.09. The GSA announced a partnership with Salesforce to offer Slack to federal agencies at a reduced price. Salesforce hosted its Agentforce World Tour.

Netflix (NFLX): Edged down about 0.6% to $1,185.39. JPMorgan downgraded the stock to "Neutral" due to its significant run-up.

Broadcom (AVGO): Fell between 0.8% and 1.6%. VMware, a Broadcom division, disclosed critical security vulnerabilities.

Banks and Financials

The financial sector was volatile, hit by interest rate worries, U.S. federal deficit concerns, and company news. Moody's U.S. credit downgrade early in the week focused attention on fiscal health.

Berkshire Hathaway (BRK.B): Declined about 1.7%, closing at $503.46. Talk continued about Warren Buffett stepping down as CEO after 2025.

JPMorgan Chase (JPM): Fell roughly 1.6% to $260.71. Its Investor Day on May 19 included unchanged net interest income guidance for 2025 and a focus on capital deployment. CEO Jamie Dimon said the bank now gives clients access to Bitcoin.

Visa (V): Dropped about 3.9% to $353.54, after hitting an all-time high on May 19. Visa Consulting & Analytics released its "10 Influencers in Payments 2025" overview.

Mastercard (MA): Fell approximately 3.9% to $563.58, also after an all-time high on May 19. The Mastercard Economics Institute published its "Travel Trends 2025" report.

Bank of America (BAC): Slipped about 3.5% to $43.20. On May 23, the bank announced it would redeem CHF 375 million of its Senior Notes due June 2026.

Consumer Goods and Healthcare

Consumer Staples and Healthcare sectors, usually seen as defensive, faced a tricky week. Concerns about consumer spending, potential tariff impacts, and healthcare policy shifts were key.

Eli Lilly (LLY): Dropped about 5.5% to $713.71. Sales of its key drugs Mounjaro and Zepbound are closely watched. Several insiders bought shares on May 19.

AbbVie (ABBV): Fell roughly 1.3% to $183.26. Strong sales from Skyrizi and Rinvoq helped offset declining Humira sales. News focused on class action lawsuits about its acquisition of Cerevel Therapeutics.

UnitedHealth Group (UNH): Plunged about 6.4% to $295.57. The stock initially rallied on Monday due to insider buying but fell sharply mid-week after a report alleged improper payments (denied by UNH) and news of more aggressive Medicare Advantage audits.

Johnson & Johnson (JNJ): Gained about 0.3%, closing around $152.93-$153.06. The company announced upcoming data presentations for its cancer treatments. The FDA's advisory committee voted favorably on Darzalex Faspro for a type of myeloma.

Procter & Gamble (PG): Rose about 0.65% to $165.83-$165.86. The company had previously cut its forecast due to consumer pullback and tariffs. Piper Sandler raised PG's price target on May 23.

Costco (COST): Declined roughly 2.5% to $1,008.50. E-commerce sales remained strong in April. Telsey Advisory Group reiterated an "Outperform" rating on May 21.

Walmart (WMT): Fell about 1.8% to $96.34. Its Q1 earnings showed revenue growth and a jump in eCommerce sales. Telsey Advisory Group reiterated an "Outperform" rating on May 21.

Energy and Industrials

Energy and industrial sectors are tied to global growth, commodity prices, and industrial activity. Crude oil prices were volatile due to recession fears and trade tensions. The U.S. housing market showed mixed signals, with April existing home sales and building permits declining.

Exxon Mobil (XOM): Fell about 3.2% to $103.03. The stock's movement was largely tied to crude oil price swings. WTI crude dipped mid-week before recovering on Friday.

Home Depot (HD): Dropped approximately 4.4% to $362.71, declining for five straight days. On May 22, Home Depot declared a Q1 cash dividend. The stock's performance reflects housing market worries and consumer spending on home improvement.

Commodities

Gold prices rallied, climbing from about $3,229.67 per ounce on May 19 to $3,357.34 by May 23. On Friday alone, gold futures jumped 1.9% to $3,360 per ounce. This was due to gold's appeal as a safe haven amid trade jitters, market volatility, and inflation worries.

Crude oil prices were up and down. West Texas Intermediate (WTI) futures fell mid-week but recovered on Friday, rising 0.9% to $61.75 per barrel.

Did you know we also write in-depth deep dives? They are long, packed with insights, and have received rave reviews. If you’re up for a detailed, action-packed read, check them out:

• AI Chip Cold War

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Baked with love,

Anna Eisenberg ❤️