41. Weekly Market Recap: Key Movements & Insights
💥 Trump's Trade War 2.0? Stocks Drop as EU & Apple Face New Tariff Storm 🇪🇺📱
Stocks Stumble as Trump's Renewed Tariff Threats and Debt Worries Grip Wall Street
After four consecutive weeks of gains, U.S. stock markets took a decisive turn into the red, as renewed trade war anxieties and persistent concerns over national debt weighed heavily on investor sentiment. The S&P 500 retreated for the week, and market participants are now bracing for a critical slew of economic data, including an updated look at GDP, in the days ahead.
Tariff Tremors Send Markets Reeling
The week began with volatility following Moody’s downgrade of the U.S. credit rating but saw a brief respite before succumbing to broader pressures. The most significant market tremors arrived on Friday, as President Donald Trump reignited trade tensions with aggressive tariff pronouncements. Via social media, Trump threatened a hefty 25% tariff on Apple if the tech giant failed to manufacture iPhones domestically and proposed a staggering 50% tariff on goods imported from the European Union.
The Dow Jones Industrial Average closed Friday down 256 points (0.61%), the S&P 500 fell 0.67%, and the tech-heavy Nasdaq Composite slid 1%. All three major indexes finished the week lower, with the Dow and Nasdaq posting their worst weekly performance in five weeks, and the S&P 500 notching its worst since early April.
The tariff threats tumbled Dow futures by as much as 600 points in early Friday trading. While markets pared some losses after Treasury Secretary Scott Bessent indicated an expectation of "several large deals" and continued U.S.-China trade talks, President Trump later reiterated he was "not looking for a deal" with the EU, sustaining market unease. Apple (AAPL) shares fell 3% on Friday following the direct tariff threat. Wall Street's "fear gauge," the CBOE Volatility Index (VIX), experienced a rollercoaster session, surging as much as 23% before settling up 8% in the afternoon. The U.S. dollar index also slid 0.8%, marking its largest single-day drop in a month.
Debt Clouds and Rising Yields Darken Outlook
Underlying the trade jitters are persistent concerns about the U.S. fiscal situation. Moody's credit rating downgrade early in the week, citing a growing federal deficit and high interest rates, set a cautious tone. This was compounded on Wednesday when markets sold off sharply as Treasury yields escalated, reflecting anxieties over the national debt. A notably weak auction for 20-year U.S. Treasury bonds underscored investor demand for higher compensation to hold U.S. debt. The yield on the 10-year Treasury note climbed above 4.61% during the week, and the 30-year bond yield surpassed 5.14%, its highest since October 2023, before slightly retreating to 4.51% on Friday as investors sought safe havens amid trade uncertainties.
Federal Reserve Governor Chris Waller commented on Thursday that "markets are looking for a little more fiscal discipline," highlighting a "risk-off on American assets."
Sector Divergence and Asset Highlights
Sector performance was mixed amidst the turbulence. Non-energy minerals, consumer non-durables, and communications showed relative strength. Conversely, electronic technology, energy minerals, and commercial services were among the weakest performers.
In other markets, Bitcoin had a notable week, surging to a new all-time high above $111,000, its first since January, before paring some gains. Gold prices jumped 4.5% for the week as investors sought safety, though the precious metal continued to trade within its recent range. Oil (WTI crude) prices rose 1.6% over the week.
Wall Street Weighs "Déjà Vu" of Trade Tensions
Analysts expressed concerns that the market was facing a familiar foe. "Markets once again face the fear of high tariffs on a major trading partner,” said Rob Haworth, senior investment strategy director at U.S. Bank Asset Management. Analysts at Barclays noted that while the EU tariff threat might be a "negotiating tactic," the developments "highlight that the US has not turned the page on tariffs and that more trade policy volatility lies ahead.”
Citi analysts echoed this sentiment, remarking, "This is sure giving us déjà vu." An investment strategist warned, "This calls into question whether investors can trust that any pauses announced by the Administration are solid, which only further muddles the landscape. Expect volatility to persist."
The focus on Apple underscored the broader economic risks. President Trump demanded that Apple and other smartphone makers manufacture their phones in the U.S. or face a 25% tariff. This demand clashes with Apple's complex global supply chain and expert opinions suggesting U.S.-made iPhones could see significant price increases. "You just can’t continue to keep an economy and companies operating in a cloud of extraordinarily high uncertainty forever without some economic consequences eventually.”
Upcoming Key Events:
Monday, May 26:
Earnings: Malayan Banking Berhad (MAYBANK)
Economic Data:
Tuesday, May 27:
Earnings: Xiaomi Corporation (1810), PDD Holdings Inc. (PDD)
Economic Data: Durable Goods Orders MoM
Wednesday, May 28:
Earnings: NVIDIA Corporation (NVDA), Salesforce, Inc. (CRM), Synopsys, Inc. (SNPS)
Economic Data: FOMC Minutes
Thursday, May 29:
Earnings: Costco Wholesale Corporation (COST), Dell Technologies Inc. (DELL)
Economic Data: GDP Growth Rate QoQ 2nd Est
Friday, May 30:
Earnings: Bajaj Holdings & Investment Limited (500490)
Economic Data: Core PCE Price Index MoM, Personal Income MoM, Personal Spending MoM
Here are the most pertinent earnings details.
Due to the volume of reports during the earnings season, it is not feasible to include every single one in our calendar.
⚡ AI-optimized, human-verified: Our expert team carefully selected Premium market intelligence from Finchat.io data. Explore now →
Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend*:🔴
Trend Signal: 🟢
*When Price and Moving Averages are all green, the Market Trend will also be green
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟡
Sector Performance: Winners and Losers from Last Week
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Winners
🧱 Basic Materials (+0.38%)
Basic Materials was the only sector to post a gain this week, rising by 0.38%. This modest increase reflects steady demand for commodities and resilience in resource-based industries, even as broader market sentiment turned negative.
Losers
🛡️ Consumer Defensive (−0.44%)
Consumer Defensive stocks slipped by 0.44%, indicating a slight pullback in demand for essential goods and services.
📱 Communication Services (−0.53%)
Communication Services declined by 0.53%, as the sector faced headwinds from shifting consumer preferences and market volatility.
⚡ Utilities (−0.82%)
Utilities dropped 0.82%, reflecting reduced investor interest in defensive sectors during the week.
🏥 Healthcare (−1.37%)
Healthcare fell by 1.37%, suggesting cautious sentiment and ongoing challenges within the sector.
🏭 Industrials (−2.16%)
Industrials posted a 2.16% loss, highlighting concerns over manufacturing and infrastructure growth.
💰 Financial (−2.28%)
Financials declined by 2.28%, as uncertainty weighed on banking and financial services.
🛢️ Energy (−2.71%)
Energy dropped 2.71%, pressured by fluctuations in commodity prices and demand.
🛍️ Consumer Cyclical (−2.86%)
Consumer Cyclical stocks fell 2.86%, reflecting weaker discretionary spending and retail activity.
💻 Technology (−3.16%)
Technology declined by 3.16%, as the sector faced profit-taking and concerns over valuations after previous strong gains.
🏢 Real Estate (−3.64%)
Real Estate was the week’s worst performer, dropping 3.64%. This decline underscores ongoing challenges in property markets and investment sentiment.
🌟 Weekly Industry Leaders 🌟
☢️ Uranium (+15.69%)
Uranium led all industries this week with a remarkable 15.69% gain. The sector’s surge reflects strong demand for nuclear energy and renewed interest in alternative power sources.
💎 Other Precious Metals & Mining (+12.00%)
Other Precious Metals & Mining followed closely, posting an impressive 12.00% increase. This performance highlights the growing appeal of precious metals as safe-haven assets amid market uncertainty.
🥇 Gold (+8.45%)
Gold advanced by 8.45%, benefiting from its traditional role as a store of value and increased investor demand during volatile periods.
🥈 Silver (+6.02%)
Silver gained 6.02%, supported by both industrial demand and its status as a precious metal.
🚬 Tobacco (+4.15%)
Tobacco stocks rose by 4.15%, reflecting steady demand and defensive characteristics in uncertain markets.
🎡 Leisure (+3.13%)
Leisure posted a 3.13% gain, indicating resilience in consumer spending on entertainment and recreation.
🔩 Copper (+2.35%)
Copper increased by 2.35%, driven by ongoing industrial demand and positive sentiment in resource-based industries.
♻️ Waste Management (+2.04%)
Waste Management rose by 2.04%, highlighting the sector’s stability and essential role in infrastructure.
💊 Drug Manufacturers – Specialty & Generic (+1.08%)
Drug Manufacturers – Specialty & Generic posted a 1.08% gain, reflecting continued demand for pharmaceuticals and healthcare products.
🧴 Household & Personal Products (+1.08%)
Household & Personal Products also gained 1.08%, underscoring steady demand for everyday essentials.
🚀 Top Market Gainers: Mergers, Bitcoin Treasuries, and Industry Innovation Ignite Explosive Moves
SVT Servotronics Inc (+267.83%) 🛠️
TransDigm Group’s announcement of a definitive agreement to acquire Servotronics sent SVT shares soaring by nearly 270%. The deal highlights the ongoing consolidation trend in the industrial sector, with investors rushing to capture the acquisition premium and bet on TransDigm’s value creation.
FAAS DigiAsia Corp (+230.07%) 🪙
DigiAsia Corp rocketed higher after unveiling a bold Bitcoin treasury reserve strategy, exploring up to $100 million in capital to acquire BTC. This move places DigiAsia at the forefront of corporate Bitcoin adoption, fueling investor excitement and a massive rally.
VIGL Vigil Neuroscience Inc (+216.06%) 🧠
Vigil Neuroscience surged after announcing a definitive merger agreement with Sanofi. The pharma giant will acquire Vigil for $8.00 per share in cash, underscoring the appetite for innovative neuroscience assets and igniting a buying frenzy.
SBET SharpLink Gaming Inc (+136.49%) 🏟️
SharpLink Gaming jumped after launching its PRISM Emerging Sports Index, tracking the rapid evolution of the global sports industry. The new index spotlights emerging companies in professional sports, media, analytics, and legal betting, fueling optimism about SharpLink’s strategic positioning.
SYTA Siyata Mobile Inc (+135.90%) 📱
Siyata Mobile shares rallied sharply despite no meaningful news. The surge appears driven by speculative trading and momentum, with investors chasing recent volatility.
🔻 Biggest Decliners: Scams, Bankruptcy Fears, and Market Manipulation Hammer Stocks
GDHG Gold Heaven Group Holdings Ltd (-69.01%) 🏮
Gold Heaven Group Holdings collapsed in what many describe as a repeat of a classic Chinese pump-and-dump scam. The company has a history of similar “rug pulls,” leaving investors with heavy losses.
NTCL NetClass Technology Inc (-68.84%) 🏯
NetClass Technology suffered a dramatic drop, widely attributed to another Chinese pump-and-dump scheme. The stock’s rapid rise and fall mirror familiar patterns of market manipulation.
WOLF Wolfspeed Inc (-63.34%) ⚡
Wolfspeed shares plummeted after reports surfaced that the embattled chip wafer maker could be weeks away from filing for bankruptcy. According to The Wall Street Journal, Wolfspeed is preparing a Chapter 11 plan backed by most of its creditors, triggering a wave of selling.
UFG Uni-Fuels Holdings Limited (-63.00%) ⛽
Uni-Fuels Holdings tumbled in what appears to be another Chinese pump-and-dump, this time using a trading vehicle based in Singapore. Despite the new wrapper, the underlying scheme remains the same, with investors left holding the bag.
MOVE Movano Inc (-50.47%) 🩺
Movano Health dropped sharply after receiving a notification of deficiency from Nasdaq related to a delayed filing of its quarterly report on Form 10-Q. The regulatory setback raised concerns about compliance and financial transparency, prompting a sell-off.
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