The S&P 500 posted a modest decline on Friday, May 9, 2025, as investors awaited fresh developments on tariffs ahead of a crucial weekend meeting between U.S. and Chinese officials. The index ended the day at approximately 5,659.91 points, reflecting a drop of 0.1% and breaking a two-day winning streak, which left it down about 0.5% for the week.
Despite a slight advance earlier in the week, the market struggled to maintain momentum. The S&P 500 had closed at roughly 5,664 on Thursday, May 8, 2025, marking a 0.6% increase for the day, yet it was significantly off its session high of 5,720. Market analysts noted that the index faced resistance at the key level of 5,700, which has proven stubborn since the S&P first surpassed it two months prior.
Rob Ginsberg, a technical strategist at Wolfe Research, pointed out that the close below 5,700 was disappointing. He stated, "Not the ideal close, as ~5700 resistance is proving to be quite stubborn since the S&P first took it out 2-months ago." He emphasized that a close above this level would have been significant, as it would have marked the first time since late March that the index managed to stay above its 200-day moving average, currently at 5,748.
Ginsberg remarked, "While many would argue [that's] an arbitrary number, the moving average has done a sound job over the years in helping to identify the market's underlying trend, and spending all but two days beneath it over the past two months speaks to the tape's longer-term deterioration." The S&P last closed above its 200-day average on March 25, 2025, when it ended at about 5,777.
In a more positive light, shares of Insulet, a maker of insulin pumps, surged by more than 20% on Friday after the company raised its full-year revenue outlook following stronger-than-expected quarterly results. Analysts at Jefferies responded by lifting their price target on Insulet stock from $350 to $360, indicating significant upside potential from its close near $311.
Meanwhile, Microchip Technology shares jumped 12.6% after analysts raised their price targets, despite the company reporting a 27% year-over-year decline in fourth-quarter sales. The positive revisions were attributed to a better-than-expected outlook.
On the other hand, Tesla shares rose 4.7%, marking gains for the third consecutive week amid optimism surrounding new U.S. trade deals. This surge came after a rocky start to the week, which was characterized by reports of declining sales in Europe and China.
Conversely, shares of Akamai Technologies fell more than 10% after Scotiabank lowered its price target from $107 to $105, with the stock closing just above $76. Additionally, Expedia Group's shares tumbled nearly 8% after the travel booking service reported worse-than-expected first-quarter results and lowered its full-year outlook due to weak U.S. travel demand. CEO Ariane Gorin noted that the company managed to grow bookings and revenue "despite weaker than expected demand in the U.S."
Furthermore, TKO Group Holdings, the parent company of World Wrestling Entertainment and Ultimate Fighting Championship, saw its shares decline by 5.5% after earnings missed analysts' expectations, although the company did raise its full-year revenue forecast.
As the markets look ahead, the upcoming discussions between U.S. and Chinese officials regarding tariffs are anticipated to have significant implications for investor sentiment and market performance. Investors remain cautious, reflecting on the unpredictability of trade negotiations and their potential impact on various sectors.
The S&P 500's performance this week highlights the ongoing volatility in the market, driven by external factors such as trade tensions and economic forecasts. As of May 9, 2025, the S&P 500 recorded a 5-day change of -0.07% and a year-to-date change of -0.47%, with a more significant decline of 3.77% since the start of the year.
In summary, while some stocks like Insulet and Microchip Technology showed resilience, the broader market faced challenges, reflecting a complex interplay of economic indicators and investor sentiment. As the weekend meeting approaches, all eyes will be on the developments surrounding U.S.-China trade relations, which could provide much-needed clarity and direction for the markets in the coming weeks.
