May 28, 2025
S&P futures edged up 0.1% in early trading after U.S. equities rallied Tuesday, with the S&P 500 gaining over 2% and more than 90% of the index closing higher. Strength was seen in big tech, small caps, travel/leisure, and chemicals. Treasuries were weaker with a bear steepening curve, the dollar was little changed, gold rose 0.3%, Bitcoin futures fell 0.9%, and WTI crude climbed 0.9%.
The Tuesday rally was driven by easing tariff concerns, potential tweaks to Japanese bond issuance, and a rebound in sentiment data, amplified by technical factors. However, global yields are higher this morning, partly due to a weak 40-year JGB auction. Market focus today includes retail earnings, Richmond Fed manufacturing data, and the $70B sale of 5-year Treasury notes. NVDA’s earnings after the close are highly anticipated, with attention on China export restrictions and the AI narrative.
Upcoming highlights include Thursday’s Q1 GDP revision, initial jobless claims, pending home sales, and Fedspeak from Barkin, Goolsbee, Kugler, Daly, and Logan. Friday’s key events include April’s personal income and spending data (with PCE inflation), and the University of Michigan consumer sentiment survey.
Corporate Highlights:
- NVDA: Suppliers reportedly resolved AI rack issues, supporting sales.
- MSI: Acquiring Silvus Technologies for $4.4B-$5B.
- TRV: Selling Canadian operations for $2.4B.
- HEI: Beat earnings with strong aerospace growth and margin outperformance.
- OKTA: Mixed Q1 results, soft Q2 guidance.
- FTV: Expanded buyback program.
- RKLB: Acquiring Geost for $275M.
- BOX: Beat and raised, citing strong interest in Enterprise Advanced.
- GIS: Approved a long-term transformation initiative.
- MTN: Shares up after CEO transition announcement.
- SMTC: Positive takeaways on Data Center segment despite lack of upside surprises.
U.S. equities rebounded strongly on Tuesday, with the Dow, S&P 500, Nasdaq, and Russell 2000 posting gains between 1.8% and 2.5%, recovering much of last week’s declines. Treasury yields fell, with the 10-year note dipping below 4.50% and the 30-year yield sliding under 5%. The dollar index rose 0.4%, while gold fell 1.9%. Bitcoin futures gained 1.0%, while WTI crude closed 1.0% lower but off session lows.
May consumer confidence rebounded sharply to 98.0, exceeding consensus expectations of 88.0 and reversing five consecutive months of declines. The increase was driven by easing trade tensions, though the labor market differential revealed a modest increase in respondents stating jobs were “hard to get.” Durable goods orders for April fell 6.3% m/m, less than the anticipated 8.1% decline, with core capital goods orders dropping 1.3%, marking the weakest level since September 2022. Housing data showed continued softness, with declines in both the S&P Case-Shiller 20-city and FHFA home price indices for March. The Dallas Fed Manufacturing Index improved significantly to -15.3, driven by gains in new orders, employment, and shipments.
On the trade front, President Trump extended the EU tariff deadline to July 9, following a positive call with European Commission President Ursula von der Leyen. This extension, alongside optimism about fast-tracked trade negotiations, lifted sentiment. Additionally, reports of potential adjustments to Japan’s super-long bond issuance helped stabilize global yields after recent turbulence, further supporting risk assets.
Sector Performance
Outperformers included Consumer Discretionary (+3.04%), Technology (+2.55%), and Communication Services (+2.14%). Underperformers included Utilities (+0.77%), Energy (+0.84%), and Consumer Staples (+0.92%)
Company-Specific News by GICS Sector
Consumer Discretionary:
- TSLA (+6.9%): CEO Elon Musk reaffirmed his operational focus amid declining European sales.
- VFC (+12.8%): Shares surged on insider buying, with CEO and COO purchasing significant stakes.
- WING (+5.0%): Upgraded to “Buy” at Truist, citing expectations of a sales rebound in 2026 and positive early trends in May.
Information Technology:
- NVDA (+3.2%): Preparing to launch the Blackwell AI chip for China, with production slated for June.
- CRM (+6.0%): Announced an $8B acquisition of INFA, enhancing its data-management capabilities.
- FICO (-11.3%): Fell sharply after criticism from FHFA’s director over credit score methods.
Consumer Staples:
- AZO (-3.7%): Posted strong revenue and U.S. comps but fell short on margins due to cost pressures.
Industrials:
- BA (+0.5%): Reached a settlement with the DOJ over the 737 MAX crashes, avoiding prosecution.
Financials:
- SKY (-16.6%): Missed earnings and revenue estimates due to input cost pressures and seasonal factors.
Communication Services:
- DJT (-10.4%): Declined after announcing plans to raise $2.5B for cryptocurrency investments via stock offerings and convertible notes.
Eco Data Releases | Wednesday May 28th, 2025
S&P 500 Constituent Earnings Announcements | Wednesday May 28th, 2025
Data sourced from FactSet Research Systems Inc.
