Five-Week Rally On Wall Street Falters, Retailers In Focus Ahead of Earnings

Barry Adams
20 May, 2025
New York City

Wall Street indexes struggled to build on the six-day rally, and widely followed indexes registered fractional gains in Monday's trading. 

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% in Tuesday's trading, as investors assessed the impact of tariffs on the broader economy. 

The S&P 500 index gained about 20% over the last 27 trading sessions after the Trump administration and China paused the implementation of newly announced tariffs. 

Despite the easing of tensions for now, retailers and importers are bracing for uncertainties and disruptions at ports as Asian manufacturers race to meet the rebound in U.S. orders ahead of the August deadline.  

Leading retailers are scheduled to report their quarterly reports this week, including updates from Lowe’s Companies, Dollar Tree, Ross Stores, Burlington Stores, and Deckers Outdoor.

Benchmark indexes reversed morning losses to close fractionally higher as investors overlooked the latest downgrade of the U.S. debt as the federal government is poised to balloon by at least $3 trillion over the next four years of the Trump administration. 

Donald Trump, during the presidential campaign in 2024, repeatedly reminded voters that his administration's economic policies would wipe out the entire federal government debt at the end of his second term. 

The U.S. federal government debt stands at $36 trillion, and the latest budget proposal discussed by the U.S. House of Representatives is likely to add at least $3 trillion. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,938.38, the Nasdaq Composite edged down 0.6% to 19,097.68, and the Russell 2000 index declined 0.6% to 2,100.11.

The yield on 2-year Treasury notes edged higher to 3.99%, 10-year Treasury notes increased to 4.50%, and 30-year Treasury bonds advanced to 4.96%.

WTI crude oil increased $0.10 to $62.24 a barrel, and natural gas prices edged higher by $0.13 to $3.24 a thermal unit.

Gold increased by $14.68 to 3,236.63 an ounce, and silver edged up by $0.12 to $32.48.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.03 to 100.46 and traded at a two-year high.

 

U.S. Stock Movers 

Home Depot Inc. increased 2.2% to $388.0 after the home improvement retailer reiterated its full-year guidance. 

The specialty retailer estimated full-year sales to increase 2.8%, driven by a 1% increase in comparable same-store sales. 

8x8 Inc. fell 1.7% to $1.80, and the voice over IP services provider reported a 2% decline in revenue and sharply higher losses in its latest fiscal year. 

Toll Brothers edged up 0.2% to $106.30 ahead of the home builders' quarterly results later in the day.