Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – May 25, 2025 at 07:00 AM

US stock fell as Trump’s tariff threats made a comeback, leading to further investor anxiety about the US deficit. The Dow Jones dropped 0.6%, Nasdaq fell 1%, and the S&P 500 decreased about 0.7%. All three indices lost more than 2% over the week. Apple shares dropped by about 3% following President Trump’s 25% tariff threats, which added further pressure on the overall market.

The Dow fell 200 points (0.61%) and closed at 41,603.07, while S&P 500 slipped 0.67% to end at 5,802.82, and the Nasdaq Composite went down by 1% to end at 18,737.21. US Steel’s shares increased by 21% after Trump’s statement about potential “partnership” with Nippon Steel.

The S&P 500 ended flat as growing fears about rising rates and a growing US deficit weighed on the market, the Dow Jones slipped 1.35 points, closing at 41,859.09, and Nasdaq rose by 0.28% to settle at 18,925.73.

The 30-year Treasury yield reached its highest since October 2023, creating fears of a ballooning US deficit leading to decreased trust in Treasurys. On the other hand, expensive but good-performing stocks like Palantir, Graham Corporation and Cintas continue to provide potential investment opportunities. Palantir shares are trading at $123.35, Graham Corporation shares at $36.77 and Cintas at $385.38.

Analysts expect that the roller coaster ride of de-escalating and re-escalating tariff tensions would continue to impact the markets throughout President Trump’s second term. This volatile market environment might provide opportunities for savvy investors and stock pickers. However, wary investors are advised to stay cautious due to the market unpredictability resulting from Trump’s volatile trade decisions.

President Trump’s recent threats of imposing higher tariffs on the EU and levy on iPhones not made in the U.S again weighed down stocks at the end of this week. The Dow Jones Industrial Average dropped by 256 points, or 0.6%, the S&P500 and Nasdaq Composite also declined. Across the week, all major US indexes faced a loss of more than 2%.

Among the main losers, tech giant Apple fell about 3% following Trump’s statement that the company must pay a 25% tariff on iPhones sold but not made in the US. Tech stocks overall lost steam with the sector falling by 0.5%. Nvidia, anticipated to report earnings this upcoming Wednesday, slid 0.9%. Other major tech firms such as Advanced Micro Devices, Meta Platforms, and Microsoft also experienced a drop.

The Dow Jones Industrial Average suffered a considerable 816.80 point, or 1.91%, loss to 41,860.44 on Wednesday. Similarly, the S&P 500 and Nasdaq Composite reduced by 1.61% and 1.41% respectively. This substantial drop was triggered by a sharp spike in Treasury yields as traders became concerned that a new US budget bill would exacerbate the country’s already significant deficit.

However, some stocks managed to perform better amid the market turmoil. Tesla shares experienced a slight 0.5% increase after Tesla CEO Elon Musk confirmed his commitment to leading the electric vehicle maker for the next five years.