Stocks decline due to worries about trade war, US credit rating, and rising deficits

From Nasdaq: 2025-05-21 15:06:00

Stock indexes are down today, with the S&P 500, Dow Jones, and Nasdaq all in the red. Trade war concerns and a US credit rating downgrade are driving the decline. T-note yields are up on worries about rising deficits, while geopolitical tensions add pressure on stocks.

The likelihood of a rate cut at the next FOMC meeting is at 6%. Q1 earnings season shows 77% of S&P 500 companies beating estimates. Overseas markets are mixed, with European bond yields rising. The ECB warns of potential shifts in global capital flows.

UK inflation rises, ECB rate cut expected. US stock movers include Palo Alto Networks, VF Corp, and UnitedHealth Group. Target Corp reports weaker sales and cuts its EPS forecast. Moderna withdraws vaccine application. Credit reporting companies and Take-Two Interactive see declines.

Alphabet and Keysight Technologies lead gainers, while Dycom Industries and XP Inc also rise. Earnings reports for Lowe’s, Medtronic, Snowflake, and others are due. Market updates and potential events to watch for this week include trade news, G-7 meetings, jobless claims, and home sales data.



Read more at Nasdaq: Stocks Fall as Fiscal Worries Boost Bond Yields