Markets Update May 23, 2025: Stocks Slide Amid Renewed Trade Tensions from Trump Tariff Announcements

Major Indices Record Weekly Losses as Trade Policy Uncertainty Returns, Impacting Tech and Retail Stocks

The stock markets closed lower on Friday, May 23, 2025, after President Donald Trump’s renewed threats of increased tariffs injected fresh concerns about the future of global trade.

Investors reacted cautiously as key benchmarks posted losses for the week, highlighting volatility in the markets driven largely by geopolitical and policy developments.

Executive Summary

Stephen Wisnefski, Executive Editor of News at Investopedia, brings over 20 years of experience covering financial markets, including a quarter-century tenure at Dow Jones and The Wall Street Journal.

His insights inform the analysis of this dynamic trading day.

Stock Market Performance: Indices End Week on a Weak Note

The Dow Jones Industrial Average retreated by 0.6%, while the S&P 500 and the tech-heavy Nasdaq Composite dropped 0.7% and 1%, respectively, on Friday.

This downturn followed a stable market on Thursday, where major indices had recovered slightly after sharp losses caused by worries over the federal budget deficit and stalled Congressional negotiations.

Intraday Volatility Sparks Renewed Unease

Volatility was reignited early Friday after President Trump took to Truth Social to criticize ongoing trade talks with the European Union.

He advocated imposing a 50% tariff on imports from the EU starting June 1, reigniting fears of an escalation in protectionist measures.

In a separate post, Trump demanded that any iPhones sold in the United States must be manufactured domestically. Failure to comply, he warned, would result in Apple (AAPL) facing tariffs of no less than 25%.

Market Context Prior to Friday’s Sell-Off

Stocks had been on an upswing leading into the week, buoyed by a seeming moderation in the administration’s trade rhetoric and a temporary pause on previously imposed tariffs targeting major partners, including China.

This period of relative calm had enabled major indexes to gain in three of the previous four weeks.

Weekly Index Performance Highlights

• Dow Jones and Nasdaq: Each declined by approximately 2.5% over the week.

• S&P 500: Endured a four-day losing streak, shedding 2.6%.

The resurgence of trade uncertainty has cast doubts on the predictability of the U.S. trade policy and its potential to hamper economic growth and corporate earnings.

Impact on Technology and Retail Stocks

Following President Trump’s tariff remarks, Apple shares declined 3%, marking the eighth consecutive day of losses and leading declines among mega-cap tech stocks.

Other technology giants including Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG), and Meta Platforms (META) each fell more than 1%. Tesla (TSLA) and Broadcom (AVGO) also saw slight declines.

Cryptocurrency and Bond Market Overview

Bitcoin traded near $108,300 late Friday, retreating slightly from a recent all-time high close to $112,000 hit earlier in the week—the first such peak since before Trump’s first presidential term.

The 10-year Treasury yield, a key benchmark influencing borrowing costs, dipped from 4.55% to 4.51%. It had briefly reached 4.63%, the highest level in over three months.

The U.S. dollar index, measuring the dollar’s strength against other major currencies, slipped 0.9% to 99.10, marking its lowest level for May.

Commodities: Safe Havens Gain Ground

In response to equity market pressure, investors turned to traditional safe havens.

Gold futures increased by 1.9% to $3,360 per ounce, while West Texas Intermediate crude oil rose by 0.9% to $61.75 per barrel.

Detailed Stock Movers on May 23, 2025

Top Decliners

• Deckers Outdoor (DECK): The UGG and Hoka parent company’s stock dropped 20% after citing tariff uncertainty and a lack of fiscal year guidance. With manufacturing concentrated in China, Deckers anticipates first-quarter net sales between $890 million and $910 million, below market expectations.

• Workday (WDAY): Fell approximately 13%, weighed down by a conservative subscription revenue outlook despite surpassing earnings and sales estimates.

• Ross Stores (ROST): Declined 9.8% after suspending full-year guidance due to tariff-related opacity. Although direct imports constitute a minor portion of Ross’s merchandise, over half of its products originate from China, exposing it to heightened tariff risks.

Leading Advancers

• Intuit (INTU): Surged 8.1%, boosted by strong third-quarter results and raised full-year guidance. Analysts raised price targets, highlighting resilience in the face of a shifting macroeconomic landscape.

• Enphase Energy (ENPH): Solar tech company shares rebounded 4.3%, recovering some ground after earlier setbacks linked to the possible removal of green energy incentives in pending legislation.

• AES Corp. (AES): Utility firm focused on renewables climbed 3.7% amid similar recovery trends.

• CrowdStrike (CRWD): Achieved a record closing high after announcing integration with Nvidia-powered AI infrastructure, enhancing cybersecurity capabilities.

US Steel Surges Following Trump-Endorsed Nippon Steel Partnership

United States Steel (X) shares jumped 21% after President Trump announced a new partnership with Japan’s Nippon Steel, signaling the end of a prolonged acquisition saga.

The merger, previously blocked due to national security concerns, promises the creation of 70,000 jobs and an economic boost of $14 billion, with U.S. Steel committing to retain its headquarters in Pittsburgh.

Major Indexes Slip Back Into Negative Territory for 2025

After briefly regaining positive territory earlier in May, the Dow Jones and S&P 500 retreated, finishing the week with losses that returned their year-to-date performance to the red.

The Nasdaq remains negative for the year, having failed to recover from a 20% drop experienced in April.

Nuclear Energy Stocks Rally on New Federal Support

Shares of nuclear energy companies Oklo (OKLO) and NuScale Power (SMR) soared following President Trump’s executive orders designed to accelerate nuclear reactor approvals, secure fuel supply chains, and reduce regulatory barriers.

These moves are aimed at revitalizing a sector viewed as pivotal to meeting rising energy demands, especially driven by the exponential growth of AI and data centers.

Tesla Price Target Raised Ahead of Autonomous Vehicle Launch

Wedbush analysts elevated Tesla’s (TSLA) price target to $500 in anticipation of the company’s June debut of fully autonomous vehicles in Austin, Texas.

The optimistic outlook reflects expectations that Tesla’s autonomous technology will drive substantial growth.

Additional Market Movers

• Workday (WDAY): Experienced a sharp decline following a cautious subscription revenue outlook, despite exceeding earnings estimates.

• Intuit (INTU): Stood out as a strong performer after beating expectations and raising future guidance.

• Deckers Outdoor (DECK): Suffered a significant drop after declining to issue full-year guidance amidst tariff-related uncertainties.

• IonQ (IONQ): After a surge driven by bullish sentiment on quantum computing, shares declined slightly but remain significantly up for the year.

President Trump’s Tariff Warning to Apple

On Friday morning, President Trump announced via social media that Apple must manufacture iPhones sold in the U.S. domestically or face tariffs of at least 25%.

This statement weighed heavily on Apple shares, which declined nearly 3%, extending a seven-day losing streak.

Futures Market Indicates a Lower Open for Monday

Futures for major indices pointed toward declines in early trading: Dow Jones futures fell 1.2%, S&P 500 futures declined 1.4%, and Nasdaq 100 futures tumbled 1.8%, signaling a challenging start to the following trading week.

Summary

The latest developments underscore how tariff policy and trade uncertainty remain key drivers of market volatility.

Corporate earnings continue to be scrutinized closely, while the government’s legislative agenda and executive actions heavily influence investor sentiment.

As the global economic landscape evolves, stakeholders remain alert to policy shifts that could impact growth trajectories and market valuations.