On Friday, May 9, 2025, stocks closed near their starting points, following two consecutive days of gains, as investors kept a close eye on trade developments. The Dow Jones Industrial Average fell by 0.3%, while the S&P 500 dipped 0.1%. The tech-heavy Nasdaq Composite, however, managed a fractional rise, indicating a mixed sentiment in the market.
This week marked a notable shift for the major indexes, which posted losses for the first time in three weeks. The Dow saw a weekly decline of 0.2%, the S&P 500 lost 0.5%, and the Nasdaq retreated by 0.3%. Investors were bracing for highly anticipated trade talks scheduled for the weekend in Switzerland between U.S. and Chinese officials. President Donald Trump had recently announced a trade agreement with the U.K. and hinted at further deals on the horizon, contributing to the market's cautious optimism.
Trump stated, "The talks could be very substantive," adding that tariffs on China, currently set at a staggering 145%, might be lowered depending on the outcome of the discussions. However, concerns lingered about the potential impact of tariffs on inflation and unemployment, as highlighted by Federal Reserve Chair Jerome Powell. The Fed's policy committee had opted to keep the benchmark interest rate unchanged during their meeting on May 7, 2025, despite Trump's dissatisfaction with the decision.
In the tech sector, shares of Tesla (TSLA) surged nearly 5%, marking the electric vehicle manufacturer's third consecutive week of gains. This uptick came amid renewed optimism regarding U.S. trade deals, despite earlier reports of declining sales in Europe and China. Other tech giants like Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) also saw slight increases, although Nvidia (NVDA) and Alphabet (GOOG) experienced minor declines.
The earnings reporting calendar was relatively light, but some companies made significant moves following quarterly results. Pinterest (PINS) shares climbed by 5%, and cybersecurity provider Cloudflare (NET) saw a 6.5% rise. In contrast, travel booking service Expedia (EXPE) dropped 7%, leading the S&P 500 decliners, while buy-now, pay-later company Affirm (AFRM) plummeted more than 14% after issuing a disappointing revenue outlook.
Bitcoin continued its upward trajectory, trading at $103,000 in late-afternoon trading, a significant increase from an overnight low of $101,300. This surge followed its breakthrough above the $100,000 mark on May 8, 2025, marking the first time it had crossed this threshold since February. The digital currency's price had previously fallen sharply between February and April, driven by tariff uncertainties and regulatory concerns.
In the commodities market, gold futures rose 0.7% to reach $3,330 an ounce after two days of declines. Meanwhile, West Texas Intermediate crude oil futures increased by 1.9% to $61.05 per barrel, nearing their highest level for the month after hitting a four-year low just last week. The yield on the 10-year Treasury note rose slightly to 4.38%, while the U.S. dollar index fell by 0.2% to 100.42, reflecting a mixed performance across various asset classes.
Among the biggest movers in the S&P 500 on Friday were Akamai Technologies (AKAM), which saw its stock decline nearly 11% after Scotiabank lowered its price target to $105 from $107. Expedia Group (EXPE) shares tumbled more than 7% following disappointing first-quarter results and a lowered full-year outlook, while TKO Group Holdings (TKO) fell 5.5% after its earnings missed analysts' expectations.
Conversely, shares of insulin pump maker Insulet (PODD) surged by 21% after the company reported stronger-than-anticipated quarterly results and raised its full-year revenue outlook. Jefferies analysts increased their price target on Insulet stock to $360 from $350, suggesting significant upside potential. Microchip Technology (MCHP) also saw its stock jump by 12.6% after several analysts raised their price targets based on the company's better-than-expected outlook.
Lyft (LYFT) shares soared nearly 30% on Friday after the ridesharing company exceeded first-quarter gross bookings estimates and announced a $750 million stock buyback program. The company's stock closed at $16.65, marking its highest level since December. CEO David Risher expressed confidence in consumer behavior, stating, "We haven't seen anything to worry about regarding consumer behavior so far this year." This positive sentiment contributed to a strong performance for Lyft's shares.
In contrast, Affirm Holdings (AFRM) shares plummeted after the company issued a disappointing current-quarter revenue outlook, projecting fiscal fourth-quarter revenue between $815 million and $845 million, which fell short of analyst expectations. Despite reporting a profit of a penny per share, the company's stock was down 12% in late trading.
Cloudflare (NET) reported a 27% year-over-year jump in first-quarter revenue, reaching $479.1 million, and signed significant contracts, contributing to a 7% increase in its stock price. The company anticipates full-year adjusted EPS of $0.79 to $0.80 and revenue between $2.090 billion and $2.094 billion.
The broader market sentiment remains cautious as investors await the outcome of the upcoming U.S.-China trade talks. Futures tied to the Dow Jones Industrial Average were up 0.2%, while S&P 500 and Nasdaq 100 futures each rose by 0.3%. The market's performance in the coming weeks will likely hinge on developments in trade policy and its impact on economic stability.
