S&P 500 Index ($ SPX) (SPY) closed -1.61%on Wednesday, Dow Jones Industries Index ($ Dowi) (Dia) -1.91%shut down, and NASDAQ 100 Index ($ IUXX) (QQQ) -1.34%. June e -Mini S&P Futures (ESM25) is below -66%, and June e -Mini Nasdaq Futures (NQM25) is below -43%.
The stock index collapsed on Wednesday with S&P 500 and NASDAQ 100 to 1-week climb. Stocks and dollars retreated on Wednesday due to the attraction of American property for foreign investors with the ongoing trade war on Wednesday, Moody Downgrade of the US credit rating last Friday, and the negative US budget deficit approach in the Republican harmony bill. The loss in shares intensified on Wednesday afternoon when the treasury’s $ 16 billion 20-year-old weakened demand for a bind auction increased the yield of bonds, with a 10-year T-Note Yield jumping to +10 BP 4.59%.
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T-neat yields increased in concern about the rising US deficit. The House Republican arrived at an agreement on Wednesday morning, increasing the salt cut from the current $ 10,000 per year by $ 40,000 per year. If spending does not pay for tax deduction, the Treasury will be forced to finance the increasing deficit by increasing the sale of American debt securities, which may push the bond yield even more.
The expansion of geopolitical risks for stock after CNN is another negative factor, when CNN reported that the new American intelligence states that Israeli is preparing for a possible strike on Iranian nuclear facilities.
The price of Bitcoin (^BTCUSD) today increased by more than 1% to a new record high level, as the Stabelcoin law advanced in the US Senate, as a group of Democrats left its opposition on Monday. StableCoin- A favorable regulatory bill is being debated with a bilateral group in the Senate, which is hoping to pass it soon as this week.
The US MBA Mortgage Application ended on 16 May and fell a week -5.1%, with the purchase mortgage sub -index down -5.2% and the re -index down -5.0%. The average 30-year fixed rate hostage increased from 6.85% to +6 bp to 6.92% in the east week.
This week, the market will focus on any tariff news or announcements of new business deals. The G -7 Finance Minister and Central Bank Governor are meeting in Branif, Canada on Thursday this week on Thursday. On Thursday, weekly early unemployment claims are expected to climb from +1,000 to 230,00. In addition, May S&P manufacturing is expected to fall from PMI -0.3 to 49.9. Finally, on Thursday, the APR is expected to climb 4.10 million from the existing house sales +2.0% m/m. On Friday, APR new house sales are expected to fall from -4.7% m/m to 690,000.
In the next FOMC meeting on 17-18 June, the market is giving a discount of 5% possibility for cutting -25 BP rate cuts.
Q1 Income reporting season is decreasing. So far, about 90% of the companies in S&P 500 have reported quarterly results, and 77% have defeated estimates, most since Q2 of 2024. The increase in income in Q1 is running at +13.1%, while just +6.6% is expected before the start of the season. Full year 2025 corporate profits for S&P 500 are seen growing +9.4% below the forecast of +12.5% in early January.
Foreign stock markets became mixed on Wednesday. Euro Stoxx 50 unchanged off. China’s Shanghai Composite +0.21%closed. Japan’s Nikkei Stock 225 1-1/2 weeks decreased and closed down -0.61%.
Interest rates
June 10-Year T-notes (Znm25) closed on Wednesday-22.5 ticks. The yield of 10-year T-Note increased to 4.587%. On Wednesday, June T-Nots were sold at a bottom of the 5-week, and the 10-year T-Rot yield increased by 3–1/4 months to 4.603%. After increasing the UK APR CPI, the 10-year UK Gilt prices were under pressure on the negative carryover of the 10-year gilt prices in the price of 10 years of gilt prices on Wednesday. T-notes were also pressurized by the concern that the tax cut in the budget of President Trump would have to force the Treasury to force the treasure to the treasure. The loss of T-Note on Wednesday afternoon with a bid-to-cover ratio of 2.46, below the 2.58 average of 2.58, with a bid of 2.46 on a 20-year-old auction for a 20-year T-brand auction.
On Wednesday, the yield of European government bonds increased. 10 -year -old German Bund yield increased at 2.646%+4.0 bp. The 10-year-old UK gilt yield jumped up to 6.776% of 6-week and increased +5.4 bp to 4.757%.
The ECB said in its bi-annual financial stability review, “Avipical shifts” can pointing to a “fundamental governance change” after April’s trade announcements. This “increases the danger of comprehensive changes in capital flows that can have potentially far -reaching consequences for the global financial system.”
UK APR CPI increased +3.5% y/y, +3.3% y/y, stronger than expectations and fastest speed in 15 months. In addition, the APR core CPI +3.8% y/y increased, +3.6% stronger than the expectations of y/y and the fastest speed of increase in one year.
In the June 5 policy meeting, the ECB is exempting the possibility of 93% for the ECB -25 BP rate cut.
US Stock Movers
Credit reporting companies sold on Wednesday after FHFA director Pulte questioned the cost of some credit reports. Fair Isaac closed more than -15%to lead the losers in S&P 500. In addition, the Transonians (Tru) -9%closed, and EFX (EFX) -7%closed.
The Palo Alto Netws (PANW) closed more than -6% to lead losing in NASDAQ 100, which was below the consensus of $ 5.57 billion to $ 5.57 billion to $ 5.57 billion to $ 5.57 billion, $ 5.57 billion below $ 5.57 billion to protect the next generation of Q4.
VF CORP (VFC) -16% shut down, which is a wide loss compared to $ 125 million, $ 125 million, $ 125 million, $ 73.1 million -$ 125 million -$ 125 million -$ 125 million.
The United Health Group (UNH) Dow Jones fell more than -5% to lead losing in Industrial, when the guardian paid a nursing home to secretly reduce hospital transfer for sick residents.
Modern (MRNA) shut down more than -7%, as “voluntarily” withdrew its application for regulatory approval for its combination covid and flu vaccine to people aged 50 and older.
Target Corp (TGT) shut down over -5%after reporting that Q1 comparable sales fell -3.8%, which was weak by consensus of -1.94%. Target cut its 2026 adjusted EPS forecast unanimously with a previous estimate of $ 8.80- $ 9.80 in $ 7.00- $ 9.00 unanimously in $ 8.43.
Tech -two interactive software (TTWO) stopped more than -4% after announcing a low public offer of 4.75 million shares of their normal stock at $ 225 per share to the public.
Analysts stated that the alphabet (Googl) closed more than +2% to lead the beneficiaries in S&P500 and Nasdaq 100, when analysts said the AI incident reduced the fears on the competition.
The Dycom Industries (DY) $ 1.26 billion Q1 closed over $ 1.20 billion after reporting a contract revenue of more than +14%.
Indiana Senator banks stated that the company would work on the “Golden Dome” missile defense shield, L3harris Technologies (LHX) +0.77% shut down.
Earning Report (5/22/2025)
Analog Devices Inc. (ADI), Autodesk Inc. (ADSK), Copart Inc. (CPRT), Deckers Outdoor Corp (Deck), Intuit Inc. (INTU), Ralph Lauren Corp (RL), Ross Stores Inc. (WDA).
On the date of publication, Rich Escpland did not have the positions mentioned in any securities mentioned in this article (either direct or indirectly). All information and data in this article is only for informative purposes. For more information, please see the Barkart Disclosure Policy here.
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