Midday Market Roundup for Friday, May 23, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, May 23, 2025:

1. U.S. Stocks Mixed Amid Trump’s Tariff Threats on Apple and EU Goods

US equities were in a state of flux at midday, reacting to President Donald Trump's announcement of potential 25% or higher tariffs on Apple iPhones manufactured outside the US and proposed 50% tariffs on select EU imports. This news caused Apple shares to drop by 2.6% and the Nasdaq to dip by 1%. However, Intuit's 7.5% surge after outperforming earnings expectations and the rally of nuclear energy stocks like Oklo (+24%) on reports of upcoming pro-nuclear policy measures provided some relief. The S&P 500 and Dow Jones Industrial Average traded flat, reflecting cautious optimism about corporate earnings but persistent trade policy uncertainty (CNBC, Reuters, Financial Times).

2. Bond Yields Retreat Slightly After Tax Bill Spurs Fiscal Concerns

Long-term Treasury yields eased from 19-month highs after the House narrowly passed a $3.8 trillion tax cut bill, exacerbating concerns about the US fiscal deficit, now at $36.2 trillion. The 30-year yield fell to 5.03%, down from 5.16%, while the 10-year yield settled at 4.59%. This development, which saw investors showing tepid demand for Treasuries amid fears of prolonged debt accumulation, is a key concern. Some buyers emerged at elevated yield levels. Moody’s recent US credit rating downgrade continues to weigh on sentiment, with global investors shifting away from dollar-denominated debt (Reuters, S&P Global, Financial Times).

3. Tariffs Drive Price Spikes and Supply Chain Delays

The S&P Global Flash PMI revealed that US business activity rebounded modestly in May, but tariffs fueled the fastest rise in input costs since August 2022. This increase in costs led companies to stockpile inventories to hedge against future tariff hikes, while supply chain delays hit pandemic-era levels. The decline in service exports and tourism, along with the lengthening of manufacturing delivery times, are clear indicators of the impact of tariffs. Despite a composite PMI rise to 52.1, S&P Global forecasts Q2 GDP growth at a sluggish 1.0% annualized rate, citing stagflation risks from rising prices and slowing labor markets (S&P Global, Investopedia).

4. Global Markets Tentative as EU Faces Trump’s Trade Warnings

Asian markets increased as investors digested the US tax bill’s passage, but European stocks fell on Trump’s tariff threats targeting EU exports. The dollar weakened against the yen and euro, while gold prices held near two-week highs. Oil futures rose slightly, but demand concerns persisted. Meanwhile, Booz Allen Hamilton shares plunged 15% after announcing layoffs tied to reduced government spending, underscoring broader economic caution. Nuclear energy firms rallied on expectations of policy support, while solar sector shifts in Europe highlighted tensions over Chinese imports (Financial Times, CNBC, Reuters).

Disclosure:
The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

Sources

1.     CNBC:
https://www.cnbc.com/2025/05/23/stocks-making-the-biggest-moves-midday-aapl-rost-intu-bah.html

2.     Investopedia:
https://www.investopedia.com/top-stock-movers-now-enphase-energy-humana-coinbase-and-more-11740038

3.     TradingView (Reuters):
https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3RV0XW:0-markets-fall-as-trump-recommends-50-tariff-on-eu-targets-apple/

4.     S&P Global:
https://www.pmi.spglobal.com/Public/Home/PressRelease/730109510e164e5489ff0a326463f6ab

5.     IMF:
https://www.imf.org/en/Blogs/Articles/2025/04/22/the-global-economy-enters-a-new-era

6.     CNBC (Urban Outfitters, Advance Auto Parts, Snowflake):
https://www.cnbc.com/2025/05/22/stocks-making-the-biggest-moves-midday-urbn-aap-snow-run-and-more.html

7.     CNBC (UnitedHealth Group, Tesla, Alibaba):
https://www.cnbc.com/2025/05/19/stocks-making-the-biggest-moves-midday-unh-tsla-baba.html

8.     CNBC (Amazon, Alibaba, Merck, Five Below, Nike):
https://www.cnbc.com/2025/05/12/stocks-making-the-biggest-moves-midday-amzn-baba-pfe-five-nke.html

‍