Stock Market Summary – May 09, 2025

The S&P 500 reported a slightly lower performance last Friday, ending the week at pretty much the same level it began. Despite major headlines around corporate earnings, AI developments, a Federal Reserve meeting, and trade deals, the market seems to have needed time to digest its historic comeback over recent weeks. The Dow Jones Industrial Average was up 0.1% over the last four trading sessions, while the S&P 500 was down 0.4% and the Nasdaq Composite was 0.3%.

Regarding individual stocks, TSMC, the world’s largest semiconductor manufacturer, saw an uplift in its share price after reporting better-than-expected sales in April, up 22.2% month over month and 48.1% year over year. Its growth suggests that the AI infrastructure ramp remains in full swing, a good sign for Nvidia, TSMC’s primary chip supplier. Although Nvidia traded lower on Friday, it is on pace for a positive week.

Human resources software startup Rippling saw its valuation rise to $16.8bn after a recent fundraising round of $450m. Despite the past three years seeing a lack of tech IPO activity, Rippling’s co-founder, Parker Conrad, said the company has no plans for an IPO in the near future.

Notable stock movers included Insulet, whose shares surged 19% after Q1 results beat estimates, and Lyft, which surged almost 23% following a profit report in Q1 and a boosted share repurchase plan. On the other hand, firms that saw losses included Expedia, which declined 7% on lower-than-expected top-line results, and Sweetgreen, which saw its shares fall 17% after a downward revision in its full-year outlook.

In the coming week, Wall Street will watch out for the results of the US-China trade talks, and look ahead to earnings results from notable companies such as Cisco and Walmart.

In recent financial news, concerns over trade deals have been highlighted by Bank of America’s chief investment strategist, Michael Hartnett. He posited that the stock market rally may falter on completion of the deals. The S&P 500 large-cap index and Nasdaq Composite have seen a steady rise despite fluctuations tied to tariff speculations. In the last month, they recorded gains of approximately 4% and 5%, respectively. Hartnett also anticipated more than $600 billion of taxes on imports.

Several companies made significant moves in the stock market. Coinbase slipped by 2% following lower than expected first-quarter revenue of $2.03 billion, with earnings dropping from $4.40 to 24 cents per share. Expedia stocks fell by 10% due to reports of lower Q1 revenue and poor guidance. On a positive note, Lyft’s shares climbed by more than 11% after the announcement of a share buyback increase to $750 million. Pinterest stocks surged close to 14% after issuing stronger second quarter revenue predictions. Shares of the medical device company, Insulet, also surged by over 12% after topping expectations in its Q1 report. On the downside, Affirm’s shares dropped by 7%.

Ahead of key trade discussions, President Donald Trump indicated his openness to reduce Chinese tariffs to 80%. The proposed rate is still considerably higher than the industry had hoped for and remains potentially prohibitive to trade.

In relation to the art market, there’s an anticipation of $1 billion worth of artwork being placed up for auction in New York next week. Despite a decline in global art sales over the last two years, Christie’s CEO Bonnie Brennan expressed confidence in art as a “safe haven” during times of volatility. The auctions include a Giacometti bronze bust valued at between $70 million to $90 million and 40 works from Roy Lichtenstein’s private collection.