Stock indexes down as bond yields rise, market concerns due to Fed rate cut approach.

From Nasdaq: 2025-05-20 12:16:00

Stock indexes are down today as bond yields rise, with the S&P 500, Dow Jones, and Nasdaq all in the red. The 10-year T-note yield is up 6 bp at 4.51%. The Fed is taking a cautious approach to rate cuts, leading to market concerns. Moody’s downgrade of the US credit rating is also impacting stocks negatively.

Markets are awaiting tariff news and trade deal updates this week. G-7 meetings and economic data releases are on the agenda. The chance of a rate cut at the next FOMC meeting is at 9%. Q1 earnings have been strong, with 77% of S&P 500 companies beating estimates. Overseas markets are mostly up today.

Interest rates are fluctuating, with T-notes down on European bond weakness. German Apr PPI fell -0.9% y/y. ECB may cut rates in June. Rate cut expectations are at 94%. European government bond yields are on the rise.

Stock movers include cruise lines and chip stocks leading the declines. AES Corp and Viking Holdings Ltd are among the biggest losers. Amer Sports is up after strong Q1 results. Nutanix and Ryman Hospitality Properties are down. Pegasystems Inc and Air Lease are up on positive news.

Deckers Outdoor Corp, Pfizer, and Dollar Tree see gains. Earnings reports for May 20 include Amer Sports, Eagle Materials, Home Depot, and more. Market movements reflect ongoing economic and trade concerns.



Read more at Nasdaq: Stocks Slip on Higher Bond Yields