Stock Market Summary – May 08, 2025

Stocks surged on Thursday led by sectors such as energy, industrials, banks, and consumer discretionary. This was driven by President Donald Trump’s announcement of a trade deal with the United Kingdom, which includes a $10 billion aircraft parts procurement from Boeing. This led to Boeing shares adding over 3% on Thursday. Goldman Sachs shares also rose approximately 3% due to increased optimism surrounding the reduction of deal-making uncertainty.

Coinbase shares are showing strong technical characteristics in anticipation of its quarterly earnings report and with Bitcoin retesting the $100,000 level. Following Coinbase’s recent acquisition of crypto options firm Deribit, a new bullish phase is expected.

CrowdStrike plans to lay off 500 people, or about 5% of its workforce, attributing it to advancements in AI. Meanwhile, Nintendo expects to sell 15 million of its new Switch 2 consoles in the fiscal year ending March 2026.

AppLovin shares jumped 12% following better-than-expected Q1 results and announced its plan to sell its mobile gaming business in a $400 million deal. Meanwhile, stocks for MercadoLibre and Crocs also rose following positive Q1 results. However, Carvana, Arm Holdings, and Cleveland-Cliffs witnessed a fall in shares due to disappointing Q1 reports or negative future quarter predictions.

Krispy Kreme shares plunged 24% after the company announced to reassess its partnership with McDonald’s and pulled its full-year outlook. It cited economic “softness” as a reason behind the move.

The stock market gained traction after President Donald Trump revealed a new trade deal between the US and UK. However, pharmaceutical stocks are slipping due to concerns about possible drug pricing reforms on Trump’s agenda. Eli Lilly saw a decline of as much as 4.7%, while Bristol-Myers Squibb fell by up to 2.3%.

Despite this, Apple and Alphabet stocks experienced a surge following news that Apple was considering retooling its Safari browser for AI-powered search engines. Costco also boasted strong sales for April, with an overall 4.7% increase in total net sales. Chip stocks including Nvidia are on the rise after it was reported that Trump won’t enforce AI diffusion rules set by the Biden administration.

In the retail sector, Costco reported a rise of 6.7% in April’s same-store sales. Tapestry, the owner of brands like Coach and Kate Spade, saw its shares increase by 9% following a better-than-expected quarter and an upgraded revenue outlook for the full year. On the downside, pharmaceutical stocks like Eli Lilly and Bristol Myers Squibb were down, amid reports that the Trump administration plans to target Medicare drug pricing.

Coinbase has made its largest acquisition to date, agreeing to purchase Dubai-based crypto derivatives exchange Deribit for $2.9 billion. The acquisition stands to solidify Coinbase’s international presence in the crypto derivatives market. The transaction is expected to close by the end of the year and resulted in a nearly 6% surge in Coinbase shares.

National Vision is predicted to have a strong second half of the year, according to Bank of America. An analyst from the bank doubled upgraded the company’s shares due to several signs that its strategic initiatives are yielding results.

Retail investors have shown greater interest in shares of Nvidia and Tesla, but were less enthusiastic about Apple due to tariff concerns. Nvidia and Tesla saw inflows of $1.2 and $1.1 billion respectively from retail investors. On the flip side, about $400 million was pulled out from Apple shares by retail investors amid concerns regarding the impact of Trump’s tariffs on Apple’s earnings.