Stock Market Summary – May 28, 2025

Financial tech company, Palantir Technologies has partnered with Fannie Mae, a government-backed loan entity, to enhance mortgage fraud detection using AI technology. Palantir shares have increased by over 140% since the 2020 presidential election, signifying a potential trend towards the modernization of U.S federal institutions.

Financial markets saw a slight decline as investors await upcoming earnings reports from Nvidia and Salesforce. In recent news, Boston Scientific is planned to withdraw from the global transcatheter aortic valve replacement (TAVR) market, a development expected to see benefit competitors such as Medtronic and Abbott Laboratories. Wells Fargo’s CEO, Charlie Scharf, expressed confidence that the $1.95 trillion asset cap imposed on the bank by the Federal Reserve in 2018 may soon be lifted.

Federal Reserve officials conveyed concerns around the potential for tariffs to exacerbate inflation rates and the complexity this might introduce to interest rate policy. Despite these concerns, policymakers remained optimistic about economic growth, maintaining the benchmark federal funds rate between 4.25%-4.5%.

President Donald Trump denied allegations that his fluctuating tariff threats were a strategic withdrawal in response to unfavorable market reactions. Trump asserted his approach was part of a negotiation tactic, intended to further U.S interest in trade discussions.

In comparison to U.S stocks, international stocks have significantly outperformed, with the iShares MSCI All Country World Index Ex U.S. ETF (ACWX) increasing by over 14% in 2025, while the S & P 500 saw marginal growth. This trend signifies a potential shift in currency and equity markets, as capital continues to flow away from the dollar and U.S stocks.

Nvidia, an AI chip giant, is set to report its fiscal first-quarter earnings after the bell. Wall Street is expecting an adjusted earnings per share of 93 cents and revenue of $43.31 billion for the quarter. However, investors are vigilant about the possible impact of the Trump administration’s export restrictions on Nvidia’s Handel H20 chips, which are directed towards the Chinese market, on Nvidia’s revenue. Meanwhile, the stock market is slightly down as it awaits major earnings reports from Nvidia and Salesforce.

Nvidia’s CEO, Jensen Huang, has been pitching the company’s AI infrastructure to foreign countries, which might be discussed during the earnings call. Salesforce is expected to show some growth from its core business, but the delay in revenue from its newly launched platform, Agentforce, is creating apprehension among investors. Research firm Melius increased Broadcom’s price target from $198 to $283 based on the growth of its custom AI accelerator customer base.

In financial advice, recent college graduates are encouraged to start saving for retirement immediately. Investing in a diversified long-term plan such as index funds, including exchange-traded funds, is recommended. A higher percentage of investment should be in equities for a long-term financial goal, while a smaller percentage can be invested in bond funds for diversification across the stock and fixed-income market.

Meanwhile, John Laurinaitis, the co-defendant in a lawsuit accusing former WWE boss Vince McMahon of sexual abuse and sex trafficking, agreed to provide evidence to the accuser, Janel Grant. Laurinaitis also reached a confidential settlement with Grant, a development that may affect WWE’s stock in the coming sessions.