U.S. stock futures were slightly lower on Tuesday after ending largely flat on Monday. Futures of major benchmark indices were trading lower in premarket.



The S&amp;P 500 index recorded its <a href="https://www.benzinga.com/25/05/45511478/dow-surges-over-100-points-despite-moodys-us-downgrade-investor-sentiment-decreases-fear-greed-index-remains-in-greed-zone">sixth session of advance</a> by ending marginally higher, shrugging off the <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">Moody&#8217;s downgrade</a> from the weekend.



Experts were assessing the impact of President Donald Trump&#8216;s tax cuts via the proposed &#8216;<a href="https://www.benzinga.com/government/regulations/25/05/45506863/trumps-big-beautiful-bill-advances-heres-who-wins-and-loses">Big, Beautiful Bill</a>,&#8217; as Moody&#8217;s also highlighted the impact of the tax cuts from 2017, and underscored it as a key reason for its decision to downgrade the U.S. credit rating from Aaa to Aa1 on May 16, 2025.



Meanwhile, the 10-year Treasury bond yielded 4.45% and the two-year bond was at 3.96%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 91.4% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.20%</td></tr><tr><td>S&amp;P 500</td><td>-0.37%</td></tr><tr><td>Nasdaq 100</td><td>-0.45%</td></tr><tr><td>Russell 2000</td><td>-0.36%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.29% to $593.14, while the QQQ declined 0.39% to $519.99, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro </a>data.



Cues From Last Session:



Healthcare, consumer staples, and industrials led the S&amp;P 500&#8217;s Monday gains as U.S. stocks mostly climbed, with the Dow Jones adding over 100 points.



However, energy and consumer discretionary stocks bucked the upward trend, closing lower.



This positive momentum followed a strong prior week where the S&amp;P 500 rose 5.3%, the Dow increased 3.4%, and the Nasdaq Composite surged 7.2%.



Despite Moody&#8217;s downgrading U.S. sovereign credit from Aaa to Aa1, investors showed limited concern. Notably, UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) shares jumped over 8% on Monday, extending Friday&#8217;s 6% surge, after executives purchased shares during a recent dip.



Novavax Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) also soared 15% following FDA approval for its Nuvaxovid COVID-19 vaccine for high-risk individuals.



On the economic front, the CB Leading Index saw a 1% monthly decline in April.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.023%</td><td>19,215.46</td></tr><tr><td>S&amp;P 500</td><td>0.088%</td><td>5,963.60</td></tr><tr><td>Dow Jones</td><td>0.32%</td><td>42,792.07</td></tr><tr><td>Russell 2000</td><td>-0.42%</td><td>2,104.43</td></tr></tbody></table></figure>



Insights From Analysts:



As the S&amp;P 500 index recovered and it was just 2.99% lower than its all-time high of 6,147.43 points, Subu Trade shares data in an X post suggesting that the index tends to rally for 2-12 months after notching such &#8220;quick recoveries.&#8221;



Last time the S&amp;P 500 recovered from -18% to -3% within 50 days, it returned 20.43% on average after one year and 4.86% after three months.



Also, the data shows that the index was higher than 100% of the time after nine months and a year.



&#8220;These quick recoveries tend to see stocks rally more over the next 3-12 months. Momentum is strong,&#8221; the X post stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The S&amp;P 500 is now -3% below its all-time high. Last month it was -18% below its all-time high. These quick recoveries tend to see stocks rally more over the next 3-12 months. Momentum is strong. <a href="https://t.co/rYzFp9IhSQ">pic.twitter.com/rYzFp9IhSQ</a>&mdash; Subu Trade (@SubuTrade) <a href="https://twitter.com/SubuTrade/status/1924556261581787515?ref_src=twsrc%5Etfw">May 19, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Meanwhile, analysts at BlackRock <a href="https://www.benzinga.com/general/market-summary/25/05/45512310/blackrock-bets-on-inflation-goes-overweight-inflation-linked-bonds-amid-us-fiscal-sustainability-challenge-heres-a-list-of-etfs-investors-can-consider">bet on rising inflation</a> by being "overweight" on the inflation-linked bonds. 



This strategic shift is to mitigate risks stemming from "persistent inflation pressure" and growing concerns over the sustainability of U.S. government finances.



The note also highlighted how the U.S. debt sustainability relies on large and steady funding by foreign investors.



"The downgrade reinforces the U.S. fiscal sustainability challenge that we've long flagged, especially persistent U.S. budget deficits at a time when higher interest rates are boosting debt servicing costs. If these dynamics dent the confidence of foreign bond holders, rising term premium could push up bond yields and debt servicing costs even more," explained BlackRock in its note.



As a result, BlackRock&#8217;s current strategy now anticipates higher term premiums for U.S. Treasuries and ongoing inflation.



"That&#8217;s why our starting point also includes our expectation of rising term premium for U.S. Treasuries and persistent inflation pressure. We go overweight inflation-linked bonds and neutral global investment grade credit given wider spreads," the note stated.



Even though U.S. assets are still core to their portfolios, BlackRock&#8217;s shift into inflation-linked bonds highlights their proactive approach to counter looming fiscal and inflationary challenges.



See Also:<a href="https://www.benzinga.com/money/how-to-trade-futures"> How to Trade Futures</a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul class="wp-block-list">
<li>Richmond Fed President Tom Barkin will speak at 9:00 a.m. ET.</li>



<li>Boston Fed President Susan Collins will participate in the &#8216;Fed Listens&#8217; event at 9:30 a.m. ET.</li>



<li>St. Louis Fed President Alberto Musalem will speak at 1:00 p.m., and Federal Reserve Governor Adriana Kugler will speak at 5:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) was 0.36% higher in premarket on Tuesday as analysts expect it to report quarterly earnings of $3.60 per share on revenue of $39.33, before the opening bell.</li>



<li>Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) was up 0.75% as Wall Street expects it to report earnings after the closing bell. It is expected to post earnings of $2.83 per share on revenue of $2.48 billion.</li>



<li>Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) was 0.026% above the flatline as analysts expect it to report quarterly earnings of 77 cents per share on revenue of $2.28 billion, after the closing bell.</li>



<li>Ekso Bionics Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EKSO#NASDAQ">EKSO</a>) dropped 19.34% after announcing a 1-for-15 reverse stock split.</li>



<li>8&#215;8 Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EGHT#NASDAQ">EGHT</a>) jumped 5% and posted in-line earnings for the fourth quarter on Monday.</li>



<li>DigiAsia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FAAS#NASDAQ">FAAS</a>) fell 15.56% after announcing that it will allocate up to 50% of net profits for Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) acquisition as part of a new strategic treasury reserve. The company also aims to raise upto $100 million to establish its initial BTC holdings and plans to generate yield through regulated institutional lending and staking.</li>



<li>Lyra Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYRA#NASDAQ">LYRA</a>) dropped 20.21% after announcing a reverse stock split, at 1-for-50, effective from May 27, 2025.</li>



<li>Yalla Group Ltd. ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YALA#NYSE">YALA</a>) slumped 9.08% after the first quarter showed an 8% year-over-year decline in paying users to 11.8 million.</li>



<li>ASP Isotopes Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASPI#NASDAQ">ASPI</a>) zoomed 14.49% after announcing multiple deals with TerraPower involving financial support and future HALEU supply.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.19% to hover around $62.02 per barrel.



Gold Spot US Dollar rose 0.24% to hover around $3,238.07 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.22% at the 100.2010 level.



Asian markets ended higher on Tuesday except South Korea's Kospi and India's S&amp;P BSE Sensex index. Australia's ASX 200, Japan's Nikkei 225, Hong Kong's Hang Seng, and China&#8217;s CSI 300 indices advanced. European markets were higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45510990/federal-reserve-should-do-nothing-at-all-about-the-rising-yields-says-craig-shapiro-let-the-bond-vigilantes-eat">Federal Reserve Should Do &#8216;Nothing At All&#8217; About The Rising Yields, Says Craig Shapiro: &#8216;Let The Bond Vigilantes Eat&#8217; </a></li>
</ul>



Photo courtesy: Shutterstock

Earnings

Equities

Market Summary

News

Futures

Economics

Pre-Market Outlook

Markets

Analyst Ratings

$BTC

ASPI

EGHT

EKSO

FAAS

LYRA

NVAX

PANW

YALA

US Stocks Likely To Open Lower After S&P 500's Six-Day Streak: 'Quick Recoveries Tend To See Stocks Rally More Over The Next 3-12 Months,' Says Expert

A former senior U.S. diplomat&nbsp;has called for urgent direct talks between U.S. President Donald Trump and Chinese President Xi Jinping before the 90-day trade truce ends.



What Happened: Michael McFaul, the former U.S. ambassador to Russia during the Obama Administration, expressed his concerns about the absence of communication between the two leaders. Despite Trump&#8217;s second term being four months old, he and Xi have not yet had a direct dialogue, <a href="https://www.scmp.com/news/china/diplomacy/article/3310934/trump-xi-direct-talks-needed-soon-clock-ticks-trade-truce-ex-us-diplomat?module=top_story&amp;pgtype=homepage">reported</a> the South China Morning Post.



"I think more engagement at the highest levels is the first step towards a better [US-China] bilateral relationship," stated McFaul.



McFaul painted a grim picture of this situation, calling it &#8220;horrible&#8221; at an event at the Chongyang Institute for Financial Studies at Renmin University in Beijing. He stressed the importance of high-level engagement and government-to-government dialogue, including a visit from U.S. Secretary of State Marco Rubio to China.



&#8220;It&nbsp;is especially important that President&nbsp;Trump meets with Xi Jinping,&#8221; McFaul stated, emphasizing the urgency after Trump&nbsp;expressed a willingness to visit&nbsp;China for talks.



McFaul cautioned that the lack of engagement could lead to misconceptions and assumptions of ill intent between the two nations, advocating for a return to more active engagement to avoid worst-case scenarios.



SEE ALSO: <a href="https://benzinga.com/trading-ideas/movers/25/05/45510197/bitcoin-ethereum-dogecoin-rally-as-senate-advances-key-crypto-bill-analyst-says-btc-could-touch-a-fresh-all-time-high-in-coming-days" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Rally As Senate Advances Key Crypto Bill: Analyst Says BTC Could Touch A Fresh All-Time High In Coming Days</a>



Why It Matters: This call for direct talks comes in the wake of Trump&#8217;s recent&nbsp;<a href="https://www.benzinga.com/25/05/45481159/donald-trump-offers-to-visit-xi-jinping-in-beijing-calls-uschina-ties-important-after-striking-temporary-trade-truce">offer to visit China</a>&nbsp;to meet with Xi Jinping, emphasizing the importance of US-China relations. 



Furthermore, Treasury Secretary Scott Bessent has recently <a href="https://www.benzinga.com/markets/25/05/45510198/scott-bessent-says-us-will-continue-trading-with-china-while-strategically-reshoring-semiconductors-steel-and-pharmaceuticals-to-protect-national-security">clarified </a>that the U.S. will &#8216;continue trading with China&#8217; while reshoring critical supply chains.



The last known telephonic conversation between the two leaders was on January 17, before Trump&#8217;s inauguration, with Beijing rejecting subsequent claims of further talks by the Trump administration. 



Notably, in the same event, Wu Xiaoqiu, dean of Renmin University's National Academy of Financial Research, cautioned that Washington should be careful with its rhetoric in managing international relations. Referring to Trump's claim in a Fox interview that he believed "China would have broken apart" without the tariff pause, Wu said, "Such statements do not help improve China-U.S. relations, including future economic and trade relations.



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/25/05/45509721/elizabeth-warren-urges-congress-to-vote-against-genius-act-citing-potential-for-trumps-corruptionanthony-scaramuc" target="_blank" rel="noreferrer noopener">Elizabeth Warren Urges Congress To Vote Against Crypto Bill, Saying It Turbocharges Trump Corruption — Anthony Scaramucci Warns Democrats Against &#8216;Political Suicide&#8217;</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Former US Diplomat Calls For Urgent Trump-Xi Jinping Talks As Trade Truce Deadline Nears, Slams 'Horrible' Lack Of US-China Contact

&#8220;Shark Tank&#8221; investor Kevin O&#8217;Leary rejected President Donald Trump&#8217;s suggestion that retailers should absorb the costs of tariffs rather than passing them onto consumers, highlighting growing tensions between the administration and major retailers over trade policy implementation.



What Happened: O&#8217;Leary directly challenged Trump&#8217;s demand that retailers like Walmart should bear the financial burden of tariffs. &#8220;This idea that the president says, &#8216;Listen, retailers, eat the tariffs.&#8217; That&#8217;s not going to happen,&#8221; O&#8217;Leary said in an <a href="https://thehill.com/business/5308558-kevin-oleary-on-trump-walmart-retailers-tariffs/">interview</a> on NewsNation&#8217;s &#8220;The Hill.&#8221;



The investor predicted that the cost increases would be shared between consumers and retailers, though he noted the uncertainty around specific tariff rates pending future negotiations. &#8220;There&#8217;s going to be some distribution of the pain between increased prices, and retailers will take some of the hit, but it really depends what the hit is,&#8221; he continued. &#8220;We don&#8217;t know. Is it 10%? 20%? 25%? What is it? Nobody knows.&#8221;



O&#8217;Leary characterized the situation as &#8220;jawboning between the retailer and Trump,&#8221; suggesting that &#8220;we&#8217;re at the beginning of a negotiation.&#8221;



See Also: <a href="https://www.benzinga.com/government/regulations/25/05/45511929/coinbase-ceo-brian-armstrong-hails-huge-win-as-genius-act-advances-with-bipartisan-senate-support">Coinbase CEO Brian Armstrong Hails &#8216;Huge Win&#8217; As GENIUS Act Advances With Bipartisan Senate Support</a>



Why It Matters: The comments came after Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) announced plans to raise prices on imported goods, prompting <a href="https://www.benzinga.com/markets/25/05/45484675/trumps-tariff-challenge-amid-rising-price-concerns-president-tells-walmart-to-eat-the-tariffs">Trump to respond on Truth Social</a>: &#8220;Walmart should stop trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made billions of dollars last year, far more than expected.&#8221; Trump added, &#8220;Between Walmart and China, they should, as is said, &#8216;eat the tariffs,&#8217; and not charge valued customers anything.&#8221;



The clash represents a significant shift in O&#8217;Leary&#8217;s stance, as he previously advocated for even more aggressive trade actions against China. In April, <a href="https://www.benzinga.com/25/05/45443149/enough-is-enough-kevin-oleary-pushes-for-400-tariffs-in-cnn-debate-with-ross-gerber-get-ready-for-the-fight-of-your-life">O&#8217;Leary demanded a 400% tariff on Chinese imports</a> during a CNN appearance, saying, &#8220;Let&#8217;s just level the playing field. The [Chinese] government cheats, steals, robs, and does not play by any rules. I don&#8217;t think 125% is enough—400%!&#8221;



Economic indicators suggest mounting costs from the trade conflict. According to a Yale Budget Lab study tariffs implemented in 2025 have <a href="https://www.benzinga.com/25/05/45443149/enough-is-enough-kevin-oleary-pushes-for-400-tariffs-in-cnn-debate-with-ross-gerber-get-ready-for-the-fight-of-your-life">already led to a 2.3% spike in consumer prices</a>—amounting to an average $3,800 loss per household. Additionally, U.S. GDP shrank by 0.3% in the first quarter.



Read Also:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/tech/25/05/45511920/cathie-wood-says-brand-damage-has-happened-for-tesla-but-believes-it-isnt-long-term-tesla-will-have-a-lock">Cathie Wood Says Brand Damage Has Happened For Tesla But Believes It Isn&#8217;t Long-Term: &#8216;Tesla&#8230;Will Have A Lock…&#8217;</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image Via Shutterstock

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Macro Economic Events

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Kevin O'Leary Pushes Back On Trump's Call For Retailers To 'Eat The Tariffs': 'That's Not Going To Happen' — Warns Of Shared Pain As Walmart Raises Prices

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Monday.



U.S. stocks settled mostly higher on Monday, with the Dow Jones index gaining more than 100 points during the session. Major indices recorded gains last week. For the week, the S&amp;P 500 gained 5.3%, while the Dow added 3.4%. The Nasdaq Composite was the standout performer, surging 7.2% last week.



Investors showed limited concern after <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">Moody&#8217;s downgraded U.S. sovereign credit</a> from Aaa to Aa1, effectively stripping the world&#8217;s largest economy of its last top-tier credit rating.



UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) shares jumped more than 8% on Monday, extending Friday&#8217;s 6% surge, after several company executives bought shares during the recent selloff. Novavax Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) surged 15% after the FDA approved its Nuvaxovid COVID-19 vaccine for high-risk individuals, including seniors over 65 and those aged 12–64 with underlying health conditions.



On the economic data front, the CB Leading Index fell 1% month-over-month in April.



Most sectors on the S&amp;P 500 closed on a positive note, with health care, consumer staples, and industrials stocks recording the biggest gains on Monday. However, energy and consumer discretionary stocks bucked the overall market trend, closing the session lower.



The Dow Jones closed higher by around 137 points to 42,792.07 on Monday. The S&amp;P 500 gained 0.09% to 5,963.60, while the Nasdaq Composite rose 0.02% to 19,215.46 during Monday's session.



Investors are awaiting earnings results from The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>), Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>), and Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 69.6, the index remained in the &#8220;Greed&#8221; zone on Monday, versus a prior reading of 70.4.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next:<a href="https://www.benzinga.com/tech/25/05/45492092/jim-cramer-was-skeptical-of-rocket-lab-now-says-its-actually-a-decent-story"> </a>



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/tech/25/05/45492092/jim-cramer-was-skeptical-of-rocket-lab-now-says-its-actually-a-decent-story">Jim Cramer Was &#8216;Skeptical&#8217; Of Rocket Lab, Now Says &#8216;It&#8217;s Actually A Decent Story&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Trading Ideas

Dow Surges Over 100 Points Despite Moody's US Downgrade: Fear Index Remains In 'Greed' Zone

Leading cryptocurrencies rose Monday amid the <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45510057/senate-crypto-bill-passes-key-vote-genius-act-moves-toward-final-passage">advancement of a stablecoin legislation</a> in the Senate.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 10:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+1.41%</td><td>$106,510.09</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+6.81%</td><td>$2,579.90</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+2.14%</td><td>$0.2291</td></tr></tbody></table></figure>



What Happened: Bitcoin recaptured $106,000 after tapping liquidity and bouncing off the support around $102,000.



Ethereum fought off the Sunday correction, surging over 7% to reclaim the mid-$2,500s. The second-largest cryptocurrency's market dominance once again rose above 9%.



These moves coincided with the Senate&#8217;s vote to advance the GENIUS Act, often known as the stablecoin bill, opening the door for its final passage.



Nearly $300 million was liquidated from the cryptocurrency market in the last 24 hours, with over $150 million in bullish bets getting erased.



Bitcoin's Open Interest rose 5.92% in the last 24 hours, while funds locked in Ethereum's derivatives spiked by over 8%.&nbsp;



Interestingly, over 57% of top traders on Binance with an open BTC position were short on the apex cryptocurrency.



The "Greed" sentiment prevailed in the market, according to the Crypto Fear and Greed Index, indicating strong buying demand.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 10:30 p.m. ET)</td></tr><tr><td>Aave (AAVE)</td><td>+19.41%</td><td>$265.34</td></tr><tr><td>Curve DAO Token (CRV)</td><td>+9.53%</td><td>$0.7403</td></tr><tr><td>Pendle (PENDLE)</td><td>+8.91%</td><td>$4.43</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.35 trillion, following a marginal dip of 0.08% in the last 24 hours.



Stocks began the new trading week on a high. The Dow Jones Industrial Average rose 137.33 points, or 0.32%, to end at 42,792.07. The S&amp;P 500 recorded its sixth consecutive day of gains, closing 0.09% higher at 5,963.60. The tech-focused Nasdaq Composite eked out a gain of 0.02% to end at 19,215.46.



Bond yields rose after <a href="https://www.benzinga.com/markets/25/05/45484954/treasury-secretary-bessent-addresses-moodys-downgrade-and-tariff-impact-n-walmart">Moody's downgraded the U.S. long-term credit rating</a>, with the 30-year Treasury yields<a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45500872/30-year-treasury-yields-hit-5-what-that-means-for-stocks"> spiking</a> to 5%—a level unseen since October 2023—while the benchmark 10-year yield topped 4.5%.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: In a note to Benzinga, Arthur Azizov, founder and investor of B2 Ventures, said that Bitcoin bulls were now in control, with strong support at $102,000 and robust resistance around $106,000.



"If buyers manage to push through this range, especially with the return of the Coinbase premium, which hints at renewed U.S. demand, then a new ATH could be set within a week or slightly more," Azizov said.&nbsp;



He added that BTC has the ingredients to break through $108,000 and test the $110,000 level, where a psychological resistance may arise.



Cryptocurrency analyst and trader Michaël van de Poppe weighed in on the "typical" Sunday rally and subsequent retrace on Monday.



"Now, that move is over and Bitcoin is back at $105,000, ready to test the all-time high in the coming 1-2 weeks. Altcoins to outperform," Van De Poppe predicted.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Typical weekend move on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>. Sweeping the high for liquidity and reversing back downwards. Now, that move is over and Bitcoin is back at $105,000 ready to test the all-time high in the coming 1-2 weeks.<a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> to outperform.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1924529234976112737?ref_src=twsrc%5Etfw">May 19, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: alfernec on Shutterstock.com



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45509721/elizabeth-warren-urges-congress-to-vote-against-genius-act-citing-potential-for-trumps-corruptionanthony-scaramucci-warns-democrats-against-political-suicide">Elizabeth Warren Urges Congress To Vote Against Crypto Bill, Saying It Turbocharges Trump Corruption — Anthony Scaramucci Warns Democrats Against &#8216;Political Suicide&#8217;</a></li>
</ul>

Cryptocurrency

Movers

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Rally As Senate Advances Key Crypto Bill: Analyst Says BTC Could Touch A Fresh All-Time High In Coming Days

On Monday, Cathie Wood-led Ark Invest made significant trades involving Taiwan Semiconductor Manufacturing Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).



The TSMC Trade saw Ark Invest making substantial purchases of the Taiwan-based chip giant&#8217;s shares. The Ark Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) and ARK Next Generation Internet ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#BATS">ARKW</a>) collectively acquired 197,776 shares. This move comes as TSMC collaborates with <a href="https://www.benzinga.com/25/05/45487650/nvidia-tsmc-and-apple-supplier-foxconn-partner-to-develop-taiwan-ai-supercomputer">Nvidia and Foxconn</a> to develop a powerful AI supercomputer in Taiwan. The partnership aims to enhance AI computing infrastructure in Asia, potentially boosting TSMC&#8217;s technological edge. 



However, TSMC&#8217;s Arizona factory has <a href="https://www.benzinga.com/markets/asia/25/04/44932342/taiwan-semiconductors-arizona-factory-faces-441-million-loss-amid-supply-chain-labor-cost-challenges">faced challenges</a>, incurring a $441 million loss due to supply chain and labor cost issues. On Monday, TSMC shares ended the day 0.4% lower at $193.50 in New York. Ark&#8217;s trade was valued at $3.83 million.



The Meta Platforms Trade involved Ark Invest reducing its holdings in the Mark Zuckerberg-led social media behemoth. The ARKK and ARKW ETFs sold a total of 101,251 shares. This decision coincides with Meta&#8217;s ongoing legal battles, including a plea to dismiss an <a href="https://www.benzinga.com/tech/25/05/45485147/meta-pleads-with-judge-to-dismiss-ftcs-antitrust-case-in-high-stakes-trial">FTC antitrust case</a>. The case could significantly impact Meta&#8217;s market dominance. Despite these challenges, Meta has ambitious plans to <a href="https://www.benzinga.com/markets/25/05/45160454/mark-zuckerbergs-meta-targets-1-4-trillion-revenue-from-generative-ai-by-2035-court-filing-reveals">generate up to $1.4 trillion in revenue</a> from generative AI products by 2035. Meta shares ended the day at $640.43. Ark&#8217;s Meta sale was estimated to be worth $6.5 million.



Other Key Trades:



<ul class="wp-block-list">
<li>ARKW sold 5,988 shares of Jack Dorsey-led Block Inc. (XYZ)</li>



<li>ARKW bought 106,061 shares of GitLab Inc. (GTLB).</li>



<li>ARKW sold 57,013 shares of CoreWeave Inc. (CRWV).</li>



<li>ARKW bought 90,233 shares of Nextdoor Holdings Inc (KIND).</li>



<li>ARKX bought 16,057 shares of Blade Air Mobility Inc. (BLDE).</li>
</ul>



Taiwan Semiconductor has a Momentum in the 82nd percentile and a Value in the 51st percentile, according to Benzinga Edge Stock Rankings. Does Nvidia rank better in terms of Value? <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Find out here.</a>



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="444" height="282" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/19214521/Screenshot-2025-05-20-at-10.44.48.png" alt="" class="wp-image-920505" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/19214521/Screenshot-2025-05-20-at-10.44.48.png 444w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/19214521/Screenshot-2025-05-20-at-10.44.48-300x191.png 300w" sizes="(max-width: 444px) 100vw, 444px" /></a></figure>



Photo Courtesy: ChrisStock82 on Shutterstock.com



Read Next: 



<ul class="wp-block-list">
<li><a href="https://benzinga.com/25/05/45486985/peter-schiff-slams-trumps-tariff-logic-higher-prices-are-necessary-to-shrink-trade-deficit" target="_blank" rel="noreferrer noopener">Peter Schiff Slams Trump&#8217;s &#8216;Eat The Tariffs&#8217; Message To Walmart: He Might As Well Ask It To Eat &#8216;Rent, Wages, Insurance&#8230;&#8217;</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ETFs

ARKK

ARKW

Cathie Wood's Monday Moves: Ark Bets On Nvidia-Supplier TSMC, Sells $6.5 Million Of Mark Zuckerberg's Meta Shares

Treasury Secretary Scott Bessent made fresh clarifications on the country&#8217;s evolving trade posture, particularly in relation to China, and the reshoring of critical supply chains.



What Happened: On Sunday, Bessent posted a video clip on X from his recent appearance on CNN's State of the Union with Jake Tapper. The segment focused on U.S.-China trade relations and Bessent's comments on the administration's push to reshore key industries linked to national security.



See Also: <a href="https://www.benzinga.com/25/05/45509854/he-made-this-mess-schumer-slams-trump-over-rising-prices-says-walmarts-transparency-exposes-economic-reality-of-tariffs">Chuck Schumer Slams Trump Over Rising Prices, Says Walmart&#8217;s Transparency Exposes &#8216;Economic Reality&#8217; of Tariffs: &#8216;He Made This Mess&#8217;</a>



&#8220;Our goal is not to decouple from China, but to open markets and restore balance,&#8221; Bessent writes alongside the video excerpt. &#8220;We'll continue trading with China, especially in non-strategic goods, and at lower tariff levels,&#8221; he says.



In the clip, Bessent highlighted the administration's focus on restoring domestic production in industries deemed vital to national security. &#8220;During COVID, we realized that we had some very strategic shortfalls, whether it was medicines, semiconductors, steel,&#8221; he said. &#8220;Those are the industries we're working to bring back.&#8221;



Bessent reiterates in the video that they &#8220;don't want to decouple with China," and that &#8220;President [Donald] Trump actually wants to open up China for business.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Our goal is not to decouple from China, but to open markets and restore balance. We'll continue trading with China, especially in non-strategic goods, and at lower tariff levels. At the same time, we're focused on reshoring critical industries like medicine, semiconductors, and… <a href="https://t.co/iutsNwQXnT">pic.twitter.com/iutsNwQXnT</a>&mdash; Treasury Secretary Scott Bessent (@SecScottBessent) <a href="https://twitter.com/SecScottBessent/status/1924113999224078402?ref_src=twsrc%5Etfw">May 18, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: This comes just a week after a <a href="https://www.benzinga.com/government/regulations/25/05/45345994/us-china-tariff-truce-will-alleviate-worst-fears-but-prevent-falling-yields-keeping-economy-under-pressure-says-craig-shapiro">truce was reached</a> between the two countries in Geneva, when tariffs were rolled back to 30% from 145%.



During the interview, Bessent nonetheless <a href="https://www.benzinga.com/markets/25/05/45486508/scott-bessent-signals-liberation-day-2-0-coming-if-countries-dont-sign-trade-deals-president-trump-has-put-them-on-notice">issued a fresh warning</a> to America&#8217;s biggest trading partners, saying that tariffs could soon snap back to their &#8220;reciprocal&#8221; levels seen during &#8220;Liberation Day,&#8221; if they fail to negotiate in good faith.



While speaking with Jake Tapper on Sunday, Bessent downplayed the Moody&#8217;s <a href="https://www.benzinga.com/markets/25/05/45484954/treasury-secretary-bessent-addresses-moodys-downgrade-and-tariff-impact-n-walmart">downgrading of U.S. Government debt</a>, calling it a &#8220;lagging indicator.&#8221;



Photo Courtesy: Maxim Elramsisy On Shutterstock.com



Read More: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/government/regulations/25/05/45506863/trumps-big-beautiful-bill-advances-heres-who-wins-and-loses">Trump&#8217;s &#8216;Big Beautiful Bill&#8217; Advances: Here&#8217;s Who Wins And Loses</a></li>
</ul>

Scott Bessent Says US Will 'Continue Trading With China' While Strategically Reshoring Semiconductors, Steel, and Pharmaceuticals To Protect National Security

Investors poured billions into long-dated U.S. Treasury ETFs in the days leading up to Moody's credit rating downgrade—raising fresh doubts over whether that confidence can endure <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45500872/30-year-treasury-yields-hit-5-what-that-means-for-stocks">as debt risks deepen.</a>



The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)—the world&#8217;s biggest fixed-income ETF—attracted $2.07 billion in inflows between May 12 and May 16, according to ETFdb.com flow data. This is the largest weekly haul since November 2024 and the second biggest since June 2024.



Other long-duration Treasury ETFs also recorded notable inflows last week:



The Direxion Daily 20-Yr Treasury Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMF#NYSE">TMF</a>)—which offers triple-leveraged exposure to 20-year Treasury bonds—attracted $470 million, its largest weekly inflow since November 2024, signaling a surge in leveraged bullish bets on long-term rates.



Meanwhile, the PIMCO 25+ Year Zero Coupon U.S. Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZROZ#NYSE">ZROZ</a>) pulled in $32.8 million, marking its strongest week of inflows since January 2025.



The timing is notable: the surge in demand preceded Friday's Moody's downgrade, which cut the U.S. sovereign rating to Aa1 from Aaa, citing chronic deficits, rising debt servicing costs, and a bleak fiscal outlook heading toward deficits near 9% of GDP by 2035, should the Tax Cuts and Jobs Act be extended.



Still, year-to-date long-dated Treasury ETFs have seen more outflows than inflows. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) witnessed $1.2 billion in outflows, positioning 2025 to potentially become the first year of net withdrawals since 2020. 



<h3 class="wp-block-heading">Tariff Truce Sparked Optimism, Reduced Recession Odds </h3>



Part of the inflows into long-dated Treasuries may have been fueled by a major U.S.-China trade breakthrough, with both sides agreeing to slash tariffs by 115 percentage points—a move that sparked a rally in risk assets and lowered perceived recession risks.



Last week's economic tone was notably risk-on – bolstered by two cooler-than-expected inflation reports – and investors, anticipating stability in interest rates and soft-landing potential, re-entered duration trades in Treasury markets. Long bonds typically perform well when growth fears ease and the market sees room for rate cuts.



<h3 class="wp-block-heading">Moody's Downgrade Adds Tension—But No Panic</h3>



Despite the downgrade, the market response was measured on Monday. The 30-year Treasury yield briefly spiked above 5% on Monday before falling back to 4.92% as demand resurfaced.



The TLT ETF inched 0.3% lower, signaling that while sentiment slightly weakened, there was no panic selling.



"Friday&#8217;s U.S. sovereign downgrade by Moody&#8217;s is unlikely to result in forced selling but may worsen UST sentiment," said Bank of America analyst Mark Cabana in a note.



Yet, several analysts across Wall Street have largely downplayed the immediate impact of the downgrade. 



Further, regulatory frameworks—such as the Basel III capital standards—continue to treat U.S. Treasuries rated AAA to AA- as risk-free for capital requirement purposes. 



This means banks and institutional investors face no changes in how they treat U.S. government bonds, reinforcing the structural role Treasuries play as collateral and liquidity instruments globally.



The appetite for duration remains intact—for now—but whether investors continue pouring in as fiscal risks take center stage remains to be seen.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45497403/is-the-dollars-global-reserve-role-at-risk-after-moodys-downgrade">Is The Dollar&#8217;s Global Reserve Role At Risk After Moody&#8217;s Downgrade? </a></li>
</ul>



Photo: Shutterstock

Analyst Color

Bonds

Specialty ETFs

Treasuries

ZROZ

Investors Piled Into Long-Term Treasury ETFs Ahead Of Moody's Downgrade: Will Confidence Hold?

Home improvement retailer The Home Depot (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) could be a gauge for the do-it-yourself growth in the era of high home prices and mortgage rates when the company reports first-quarter financial results Tuesday<a href="https://www.benzinga.com/earnings"> before market open.</a>



Here are the earnings estimates, what experts are saying ahead of the report, and the key items to watch for.



Earnings Estimates: Analysts expect the company to report first-quarter revenue of $39.33 billion, up from $36.42 billion in last year's first quarter, according to data<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0519"> from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in two straight quarters and six of the last 10 quarters overall.



Analysts expect the company to report first-quarter earnings per share of $3.60, down from $3.63 in last year's first quarter. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters overall.



Read Also: <a href="https://www.benzinga.com/politics/25/05/45272436/marjorie-taylor-greene-goes-stock-shopping-again-here-are-50-stocks-the-congresswoman-bought">Marjorie Taylor Greene Goes Stock Shopping Again: Here Are 50+ Stocks The Congresswoman Bought</a>



What Experts Are Saying: While Home Depot showed signs of improvement in April, the delay of the Spring season could lead to lower comparable sales, JPMorgan analyst Christopher Horvers said in a <a href="https://www.benzinga.com/trading-ideas/movers/25/05/45236384/home-depot-may-face-weaker-comps-in-q1-as-choppy-spring-and-tariff-risks-weigh">recent investor note.</a>



The analyst reiterated an Overweight rating on Home Depot and lowered the price target from $470 to $410.



Horvers is cautious on the company's gross margins for the quarter, while seeing positives like inventory shrink likely coming in the report.



The analyst said macro economic uncertainty will also likely weigh on higher-ticket spending in the report and the future. Horvers said the home improvement retailer will likely keep its guidance in place and revisit things after the second quarter report.



Freedom Capital Markets Chief Global Strategist Jay Woods said Home Depot's report comes as the stock has struggled year-to-date.



"Home Depot results will give a peek at how the DIY home retail investor is changing their spending habits," Woods said in a weekly <a href="https://jaywoods.substack.com/">newsletter</a>.



Woods said investors will be looking to see if Home Depot revises its guidance given higher interest rates and economic challenges.



Goldman Sachs analyst Kate McShane has a Buy rating on Home Depot and $421 price target <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44797563/goldman-sachs-sees-upside-in-retail-giants-dollar-tree-home-depot-best-buy-and-target-despite-tariff-margin-pressures">ahead of the report.</a>



The analyst said the company won't be widely impacted by tariffs in the short term, with most of its imported goods being seasonal and spring merchandise already in inventory at stores.



In the past, Home Depot helped offset tariff impacts by sourcing alternative items and adjusting operations, McShane said in the note.



The analyst highlighted Home Depot's management commentary about home buyers likely sidelined with rates in the 6% to 6.5% range.



Here are other<a href="https://www.benzinga.com/quote/HD/analyst-ratings"> analyst ratings on</a> Home Depot and their price targets:



<ul class="wp-block-list">
<li>Wells Fargo: Maintained Overweight rating, lowered price target from $445 to $420</li>



<li>Truist: Maintained Buy rating, raised price target from $391 to $393</li>



<li>Morgan Stanley: Maintained Overweight rating, lowered price target from $450 to $410</li>
</ul>



Key Items to Watch: Tariffs will likely be one of the biggest topics to watch for, as many retailers have commented on what the impact of higher import prices could mean. Given the potential impact of tariffs and macroeconomic concerns, guidance will be closely watched.



Home Depot CEO Ted Decker was among the retail CEOs <a href="https://www.benzinga.com/25/04/44920573/ceos-of-walmart-target-home-depot-meet-trump-to-push-back-on-tariffs-impacting-consumer-prices">who met with</a> President Donald Trump to share concerns about the impact tariffs could have on the sector.



Investors and analysts will be watching to see if Home Depot can maintain its momentum from<a href="https://www.benzinga.com/news/earnings/25/02/43937535/home-depot-lifts-annual-dividend-after-strong-q4-but-soft-2025-outlook-weighs-on-stock" target="_blank" rel="noopener"> the fourth quarter</a>. In the fourth quarter, sales were up 14.1% year over year, and customer transactions were up 7.6% year over year.



A recent Placer.ai <a href="https://www.placer.ai/anchor/articles/lowes-and-the-home-depot-weathering-q1-storms-and-looking-to-the-horizon">report </a>indicates that Home Depot saw fewer visits during the first quarter. The report said visits to Home Depot fell 3.8% in the first quarter on a year-over-year basis. The report showed visits down 2.3%, 9.2% and 0.7% in the months of January, February and March respectively.



Visits were down 1.8% year-over-year in April, which could factor into second-quarter and full-year guidance. Placer.ai said the good news is that last year's peak weekly visits came in mid-May, which could be a sign of optimism for the current quarter.



Home Depot's report comes one day before rival Lowe's Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>), which reports on Wednesday. The report from Home Depot could make Lowe's shares volatile as they operate in the same sector and could indicate what's to come in Lowe's report.



The Dow Jones Industrial Average could also be volatile following Home Depot's report. Home Depot is one of the 30 components of the closely watched market index. Since the Dow Jones is price-weighted, Home Depot is one of the larger components and currently the third largest weighting (5.5%) of the SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>).



Higher mortgage rates have often helped home improvement retailers, as they lead to more do-it-yourself home projects and spending money on existing homes rather than buying a new one.



HD Price Action: Home Depot stock trades at $379.91 Monday versus a 52-week trading range of $323.77 to $439.37. Home Depot stock is down 2.2% year-to-date and up 12.5% over the last year, outpacing a 4.5% year-to-date decline and 2.8% one-year gain for rival Lowe's.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/04/45037102/walmart-home-depot-target-push-chinese-suppliers-to-resume-shipments-agree-to-absorb-tariffs-report">Walmart, Home Depot, Target Push Chinese Suppliers To Resume Shipments, Agree To Absorb Tariffs: Report</a></li>
</ul>



Photo: Shutterstock

Price Target

Previews

Reiteration

Home Depot Q1 Earnings Preview: Tariffs, Mortgage Comments, How Consumers Are 'Changing Their Spending Habits'

The term ‘short squeeze' entered retail investors' vocabulary in January 2021 when GameStop (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) went parabolic following a coordinated effort by traders on Reddit. Short sellers had attempted to profit from GameStop&#8217;s demise by borrowing shares from their broker and immediately selling on the open market.



The selling and the company&#8217;s lagging business would drive the price down, so the short sellers were hoping to buy the shares back later for less and pocket the difference. Instead, Reddit traders and a stronger-than-expected business pushed the price up. This sent short-sellers scrambling to buy shares back and close out their positions, causing the stock to go up even faster.



These &#8220;short squeezes&#8221; often peter out as quickly as they materialize, but profits can be exponential for those who find entry points before the catalyst.



Now that markets have recovered from April&#8217;s tariff drama, let&#8217;s take a look at some still-downbeat stocks primed for a short squeeze.



Here are five stocks with huge potential for a short squeeze run-up.



Each stock on this list has a minimum Benzinga Edge Growth Score of 96, short interest over 15% (meaning at least 15% of the float is sold short), and a potential catalyst on the horizon that could spark the fire.



<h2 class="wp-block-heading">Abercrombie and Fitch Co.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 99.21</li>



<li>Short Interest: 20.93%</li>



<li>Catalyst: Tariff reductions, technical breakout</li>
</ul>



Abercrombie and Fitch (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) made our list earlier as a stock to watch in March when the Relative Strength Index (RSI) dropped below 30, triggering an Oversold signal. But then Liberation Day happened, and stocks plunged, especially those exposed to Chinese manufacturing like ANF. However, now that the harshest tariffs have been rolled back and the odds of a recession are dropping, apparel stocks could be primed for a comeback, and Abercrombie is still flashing bullish technical signals. The stock has been down over 40% year-to-date (YTD) but up 13% in the last 30 days.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXejWYySmB76KdXbLy8Wl853VRDSFevBoRd5EuSYBht6xZ0Zj9F9Q-_tJHFu0G2iAsCCE-AfK5yhgYnf-akDyuWTue0Td7G2w-YRpqQjBddKmfcpeKO9YYzMZEkMi4B83ge2xu2UaA?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



The stock recently saw its 14-day exponential moving average (EMA) cross the 21-day EMA, indicating short-term bullish momentum. ANF's price has struggled to break above this level since President Trump announced his reciprocal tariffs, but now the breakout has occurred, and the RSI is still cooperating by staying below 70. ANF shares trade at just 7.5 times earnings, and the company still has some of the best margins in the apparel business. It also reports earnings on May 28, so a potential short-squeeze catalyst awaits.



<h2 class="wp-block-heading">Applied Digital Corp.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 98.02</li>



<li>Short Interest: 30.54%</li>



<li>Catalyst: Cryptocurrency bull market, technical breakout</li>
</ul>



Applied Digital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) is an artificial intelligence "picks and shovels" play that focuses on hosting data centers and cloud services for AI, crypto mining, and high-performance computing firms. The company has a $1.27 billion market cap and has grown its annual revenue each year since it went public, but it has yet to reach profitability.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXddq6O1E7WnluYE4PqT4qiKYFlngbgG4yHQ1G_--mBJ0_I3V3tP0-NWseewbSTcspxErVjeZh6eK9V6rrqvQ5hKJYzBJVHj_7Ctlf3di85QFKX_cE9cZPxQocsc2rcVXJC-1wL6mg?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



Of course, we aren't worried about the path to profitability when hunting short squeezes, and APLD shares have some bullish technical signals to go along with over 30% short interest. The stock dipped following a revenue miss on the April 14 earnings report, but shares have been shrugging off the bad report and moving higher. Like ANF, the stock chart shows the 14-day EMA crossing the 21-day EMA, with the price hugging the 14-day EMA as support. Analysts are still bullish on the stock, with Needham, Cantor Fitzgerald, and HC Wainwright defending their Buy ratings following earnings. The average price target between these three is $9, indicating a potential upside of over 55%.



<h2 class="wp-block-heading">Airship AI Holdings Inc.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 97.70</li>



<li>Short Interest: 71.66%</li>



<li>Catalyst: Earnings</li>
</ul>



Airship AI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AISP#NASDAQ">AISP</a>) is a small-cap firm offering data management solutions to clients using AI platforms. AISP has some of the classic hallmarks of a short squeeze: a tiny market cap, a thinly traded float that was massively sold short, and a potential catalyst unfolding.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe3fT9KA-hbPQshVpStWY8CP7fKa-MsD1FWMxAt_hlfOs_TsHiD5gJOx--vC5F0ACC-P9eCYQgKrrpZQwooQHTrMIJMsxvuXh5W0M9T6WwK9PnZseecx1yBlbnmSYmQT6eKzxpe1Q?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



AISP has over 71% short interest, the highest on our list by more than 40%. When stocks are shorted to this level, there's usually a good reason, and a parabolic GameStop-esque rally isn't in the cards. However, AISP reported a 25% revenue surprise to the upside during its May 15 earnings report, sending the stock up 4% in after-hours trading. It was the third straight quarter the company had increased revenue, and it&#8217;s now trading above its 50-day and 200-day simple moving averages (SMAs) for the first time since February.



<h2 class="wp-block-heading">NuScale Power Corp.&nbsp;</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 96.87</li>



<li>Short Interest: 18.98%</li>



<li>Catalyst: Earnings, technical breakout</li>
</ul>



Nuclear power has been grabbing lots of headlines lately as Google <a href="https://www.benzinga.com/content/45335750/google-is-betting-big-on-nuclear-reactors-should-you">reached an agreement</a> to open three nuclear sites to power AI data centers. The AI energy boom will require alternative sources, and nuclear power is quickly becoming a revitalized choice. Companies like NuScale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>), which operates the only approved small module reactors (SMRs), could benefit most from this change of heart.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdVzU12PzgkXxgIuWJjv6nKvtZT6vLI5BtMEKiN9bdhh_MTQyn7Fm88PZjpD348wAL6i-odpJTl-dhTILDqpY8ld8xOHk_q_c4i2B9w2ofx27Vm2kVcHpyPUeoibcxZIeaSKP3W?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



NuScale has a pair of catalysts working in its favor: its partnership with AI data center provider Standard Power and a blowout earnings report. On May 12, NuScale reported a top and bottom-line earnings beat, including a 289% revenue surprise to the upside. The company also beat analysts&#8217; EPS estimates by 26%, and the stock is now up 37% in the last five sessions. The breakout above the 50-day and 200-day SMAs indicates more potential upside ahead, especially if the 50-day heads back over the 200-day SMA and triggers a Golden Cross.



<h2 class="wp-block-heading">Reservoir Media Inc.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 98.07</li>



<li>Short Interest: 18.09%</li>



<li>Catalyst: Earnings, technical breakout</li>
</ul>



Reservoir Media  (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RSVR#NASDAQ">RSVR</a>) is a small-cap music media firm that records and publishes material from various independent artists. The company both signs new artists and acquires existing music catalogs. RSVR reports earnings on May 28, and technical indicators are signaling bullish activity under the surface.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc6HMYkcOP1aGE3xb3MQ1ji1v0peaF8vdNFXpFO4pdsRLkLhCFkY4FxJHQPUpoc7UDTaY8KhadzOexz49da-mick4EHPF_0RuFXqswEa1723EzSqvYksF_JDANodmFqXFryEMDVfQ?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



RSVR has been declining since February but recently began poking its head above the 14-day and 21-day EMAs, indicating a potential support level is forming. As of this writing, shares are trading above both EMAs with the RSI well below the oversold threshold of 70. With earnings coming up, RSVR is the type of small-cap stock with high short interest that could surge higher with an upside surprise. Analysts thinly cover the stock, but B. Riley Securities did imbue a Buy rating with a $12.50 price target back on Halloween, which is nearly 70% higher than current prices. 



<h2 class="wp-block-heading">Unlock Hidden-Gem Stock Picks — 60% Off for Memorial Day</h2>



Edge members get five hidden-gem stock picks every Friday from our ‘Whisper Index.' It flagged Uber, MicroStrategy, Coinbase… all before major runs. Want the next 5 &#8211; at a special Memorial Day discount? Unlock the Weekly ‘Whisper Index' <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052025/?el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a> at 60% off



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



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Opinion

AISP

APLD

RSVR

5 Stocks About To Short Squeeze As Market Rebounds

General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) has announced the end of vehicle exports from the U.S. to China, a decision communicated to employees and dealers of its China export business. 



This move comes amid ongoing U.S.-China trade discussions, particularly concerning tariffs and broader economic conditions, according<a href="https://www.reuters.com/business/autos-transportation/gm-stop-exporting-vehicles-us-china-company-says-2025-05-19/?utm_source=chatgpt.com"> to</a> Reuters.



GM&#8217;s exports to China were facilitated through its Durant Guild premium import division, which accounted for less than 0.1% of its total sales in the Chinese market. The company cited significant changes in economic conditions as the reason for restructuring the Durant Guild and optimizing GM China&#8217;s operations. This follows a similar decision by GM&#8217;s competitor, Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), which halted its exports to China in April, <a href="https://www.reuters.com/business/autos-transportation/gm-stop-exporting-vehicles-us-china-company-says-2025-05-19/?utm_source=chatgpt.com">said</a> Reuters.



The broader context of these decisions includes significant financial challenges for GM in China. In December 2024, GM recorded a $5 billion charge against its Chinese operations due to increasing competition and market challenges. This included a write-down of up to $2.9 billion in its Chinese joint venture and $2.7 billion in restructuring charges. The restructuring efforts involve plant closures and portfolio optimization to counter market challenges, <a href="https://www.thetimes.com/business-money/companies/article/general-motors-takes-5bn-charge-against-operation-in-china-zf8g9d9j8?utm_source=chatgpt.com&amp;region=global">according</a> to The Times.



As part of its restructuring, GM is closing its plant in Shenyang, China, which produced Buick GL8 minivans and Chevrolet Tracker SUVs. This decision is in response to intense competition from local manufacturers and is part of a broader strategy to focus on premium vehicles under the Cadillac and Buick brands, along with its premium import business, <a href="https://www.reuters.com/business/autos-transportation/gm-closing-plant-china-part-restructuring-2025-02-14/?utm_source=chatgpt.com">said</a> Reuters.



These strategic shifts by GM and Ford highlight the challenges faced by U.S. automakers in the Chinese market, including high tariffs and increasing competition from local manufacturers, particularly in the electric vehicle sector. Both companies are adapting their operations to navigate these challenges and optimize their global strategies.



Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45505333/investors-piled-into-long-term-treasury-etfs-ahead-of-moodys-downgrade-will-confidence-hold"> • Investors Piled Into Long-Term Treasury ETFs Ahead Of Moody&#8217;s Downgrade: Will Confidence Hold?</a>



Photo: Shutterstock

Global

GM Announces The End Of Car Exports To China

U.S. stocks trimmed early-session losses by midday Monday, as investors showed limited concern after Moody's downgraded U.S. sovereign credit from Aaa to Aa1, effectively stripping the world's largest economy of its last <a href="https://www.benzinga.com/25/05/45492889/americas-credit-strength-just-got-cut-again-should-you-panic">top-tier credit rating. </a>



The S&amp;P 500 index hovered near Friday's close. A green end to the session would mark the sixth consecutive daily gain. The Nasdaq 100 also traded flat, while the Dow Jones Industrial Average outperformed, and small caps lagged. 



Bond markets initially reacted sharply, with 30-year Treasury yields spiking above 5% following the downgrade. Yet, buying interest emerged during the session, pulling yields back to 4.95%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) still was down 0.6% on the day. 



The U.S. dollar index (DXY) weakened 0.6% to 100.40, reflecting moderate selling pressure on the greenback. Sector performance was muted overall, except for energy, which fell 1.5%. Crude oil slipped 0.4%, while natural gas dropped 6% amid oversupply concerns. 



Gold rose 1% to $3,235 per ounce, supported by safe-haven flows. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rallied 2%, climbing above the $105,000 mark.



<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Dow Jones</td><td>42,824.92</td><td>0.4%</td></tr><tr><td>Nasdaq 100</td><td>21,456.60</td><td>0.1 %</td></tr><tr><td>S&amp;P 500</td><td>5,965.78</td><td>0.1 %</td></tr><tr><td>Russell 2000</td><td>2,102.02</td><td>-0.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 1:05 p.m. ET</figcaption></figure>



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45497403/is-the-dollars-global-reserve-role-at-risk-after-moodys-downgrade">Is The Dollar&#8217;s Global Reserve Role At Risk After Moody&#8217;s Downgrade?</a></li>
</ul>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.1% up to $594.91.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.4% to $428.18.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;edged 0.1% higher to $522.01.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $208.80.</li>



<li>The&nbsp;Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) outperformed, up 0.7%; the&nbsp;Energy&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 1.5%.</li>
</ul>



<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>



<ul class="wp-block-list">
<li>UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) jumped 8%, extending Friday's 6% surge, after several company executives bought shares <a href="https://www.benzinga.com/25/05/45493652/700m-asset-manager-exits-unitedhealth-stock-says-medicare-advantage-is-facing-a-perfect-storm">during the recent selloff</a>.</li>



<li>New Fortress Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFE#NASDAQ">NFE</a>) rallied 21%, following a nearly 60% decline last week amid lower-than-expected earnings. </li>



<li>Novavax Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) surged 18% after the FDA approved its Nuvaxovid COVID-19 vaccine <a href="https://www.benzinga.com/government/regulations/25/05/45488265/novavax-wins-limited-fda-nod-for-covid-shot-cleared-only-for-seniors-high-risk-groups-amid-safety-scrutiny">for high-risk individuals</a>, including seniors over 65 and those aged 12–64 with underlying health conditions. Shares of Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) rose 6.4%.</li>
</ul>



Now Read: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45497403/is-the-dollars-global-reserve-role-at-risk-after-moodys-downgrade">Is The Dollar&#8217;s Global Reserve Role At Risk After Moody&#8217;s Downgrade?</a></li>
</ul>



Image: Shutterstock

Sector ETFs

Broad U.S. Equity ETFs

Econ #s

Tech

MRNA

Stocks Mixed, Treasury Bonds Slip On Moody's US Downgrade: What's Driving Markets Monday?

Wall Street's reaction to <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">Moody's downgrade of U.S. debt </a>is turning into a tale of two titans. On one end, you have Ray Dalio — founder of Bridgewater Associates — warning that the downgrade grossly understates the true risk of owning U.S. debt.



On the other hand, there&#8217;s Tom Lee of Fundstrat. Lee brushed the downgrade off as a "non-event" and told investors to go shopping for stocks.



Moody's cut the U.S. credit rating from Aaa to Aa1, following in the footsteps of S&amp;P in 2011 and Fitch in 2023. With this move, the U.S. officially loses its AAA status across the board. 



But is it a flashing red signal or just another headline?



Read Also: <a href="https://www.benzinga.com/hedge-funds/25/05/45447966/ray-dalios-bridgewater-dumps-spy-trims-nvidia-meta-alphabet-bearish-vibes">Ray Dalio&#8217;s Bridgewater Dumps SPY, Trims Nvidia, Meta, Alphabet — Bearish Vibes?</a>



<h2 class="wp-block-heading">Ray Dalio: The Real Threat Isn&#8217;t Default, It Is&#8230;</h2>



Dalio didn't mince words. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Re the U.S. debt downgrade, you should know that credit ratings understate credit risks because they only rate the risk of the government not paying its debt. They don&#39;t include the greater risk that the countries in debt will print money to pay their debts thus causing holders…&mdash; Ray Dalio (@RayDalio) <a href="https://twitter.com/RayDalio/status/1924452875108839862?ref_src=twsrc%5Etfw">May 19, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He argued the real threat isn't default, but dilution — central banks printing money to meet obligations. 



"For those who care about the value of their money," he posted on X, "the risks for U.S. government debt are greater than the rating agencies are conveying." Translation? The downgrade misses the bigger picture: currency debasement.



<h2 class="wp-block-heading">Tom Lee: Downgrade = Largely &#8216;Non-Event&#8217;</h2>



Tom Lee, meanwhile, is telling clients to stay calm and keep buying. Like those before, he says this downgrade is unlikely to trigger panic. History might just be on his side — after S&amp;P's downgrade in 2011 and Fitch's in 2023, the S&amp;P 500 plunged roughly 10% in the short term but rallied over 35% within a year in both cases.



So what now? If Dalio's right, long-term bondholders could face slow bleed-through inflation, not default. But if Lee's playbook holds, a short-term dip could be just the setup bulls need.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/05/45491935/history-says-sp-500-could-fall-10-after-rating-downgrade-but-rally-35-after">S&amp;P 500 History Suggests 10% Drop After Downgrade — Followed By 35% Rally</a></li>
</ul>



Image: Shutterstock

Hedge Funds

Dalio Sees Danger, Tom Lee Sees Dip-Buy: Who's Right About The US Credit Downgrade?

As Moody's strips the U.S. of its last AAA credit rating, financial markets and currency analysts are weighing whether the dollar's role as the world's primary reserve <a href="https://www.benzinga.com/25/05/45492889/americas-credit-strength-just-got-cut-again-should-you-panic">currency could slowly erode. </a>



Analysts across major institutions agree that Treasuries remain indispensable in global finance, and no mechanical turmoil is expected in the near term.



Yet, the downgrade's timing and symbolism—arriving amid growing fiscal deficits, political uncertainty and weakening sentiment—have amplified calls for greater diversification from dollar-denominated investments for foreign investors.



<h3 class="wp-block-heading">Dollar&#8217;s Dominance Isn't Over, But It's Under Pressure</h3>



"The link between U.S. sovereign risk, Treasuries, and the dollar is one of capital flight," said Chris Turner, analyst at ING Group. 



"Are global investors shifting their portfolios away from the U.S.?" 



He highlighted that March data from the U.S. Treasury's International Capital report showed foreign buyers added $26 billion in Treasuries, though China trimmed its holdings by $19 billion. 



Turner said upcoming TIC data for April, due mid-June, will be key to determining any real trend.



<h3 class="wp-block-heading">Downgrade Could Spark Market Volatility</h3>



According to Alejandro Cuadrado, forex strategist at BBVA, Moody's downgrade—though symbolic—arrives at a vulnerable time.



"It may act as a psychological catalyst," he said. Unlike S&amp;P's 2011 or Fitch's 2023 downgrades, this one coincides with bearish sentiment in Treasuries and rising global fiscal concern.



Cuadrado said the structural use of Treasuries in collateral systems, reserve portfolios and liquidity management remains unchanged. 



Still, "in this macro environment, the downgrade could amplify market jitters and FX volatility," he said, potentially weakening the dollar's ability to rebound after a three-month slide.



"The downgrade highlights long-term risks, including debt sustainability, which could further erode the dollar's haven appeal," George Vessey, lead macro strategist at Convera, said.



<h3 class="wp-block-heading">Time to Start Reducing Dollar Exposure?</h3>



According to UBS, the recent consolidation in the dollar following earlier weakness offers a strategic moment for reallocation.



"We believe that this provides an opportunity for investors with excess USD cash, or international investors with unhedged exposure to U.S. assets, to reduce their exposure to the U.S. dollar."



Over the long term, UBS sees further structural risks. "The trend of international diversification could lead to further dollar weakness, particularly if the Federal Reserve begins to play a more active role intervening in bond markets amid high fiscal deficits."



<h3 class="wp-block-heading">Not A Collapse For Now, Yet Caution Is Warranted</h3>



The Dollar Index (DXY) – which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – fell 0.8% on Monday, erasing gains from last week on the back of a U.S.-China trade truce.



Capital flight hasn't hit the data yet, but concerns about U.S. debt and policy are starting to grow worldwide.



For the time being, the dollar remains the anchor of global trade and finance—but the psychological buffer it once enjoyed is showing cracks, and that shift may matter more than a credit downgrade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/bonds/25/05/45396490/peter-schiff-says-trade-truce-aside-the-world-is-losing-confidence-in-dollar-and-in-us-ability-to-put-fiscal-house-in-order">Peter Schiff Says Trade Truce Aside, The World Is &#8216;Losing Confidence&#8217; In Dollar And In US Ability To Put &#8216;Fiscal House In Order&#8217;</a> </li>
</ul>



Image created using artificial intelligence via Midjourney.

Currency ETFs

Forex

Is The Dollar's Global Reserve Role At Risk After Moody's Downgrade?

Wall Street's <a href="https://www.benzinga.com/topic/billionaires">billionaire brigade hit</a> turbulence in the first quarter of 2025. From Warren Buffett to George Soros, even the most iconic names couldn't dodge the drawdowns as markets rotated and profit-taking weighed down performance.



Buffett's Berkshire Hathaway Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) <a href="https://whalewisdom.com/dashboard2/search/fund_performance_search">saw </a>a -2.52% return on an equal-weighted basis in the first quarter, trailing its own 3-year and 5-year annualized returns of 7.10% and 10.90%, respectively. The world's most famous value investor remains heavily concentrated &#8211; 89% of his $258 billion portfolio sits in the top 10 holdings &#8211; but that concentration didn't provide a cushion in a volatile quarter.



Carl Icahn fared even worse. The activist legend posted a brutal -10.15% quarterly return &#8211; by far the worst among the billionaire cohort. Despite nearly 98% portfolio concentration, Icahn&#8217;s equal-weighted decline highlights how even conviction bets can backfire. His 5-year return of 15.99% is respectable, but the near-term pain is undeniable.



Read Also: <a href="https://www.benzinga.com/general/biotech/25/05/45471704/icahn-ramps-up-bets-on-genes-and-jets-illumina-stake-jumps-450-jetblue-holding-grow-90">Icahn Ramps Up Bets On Genes And Jets: Illumina Stake Jumps 450%, JetBlue Holding Grow 90%</a>



Soros, known for macro mastery, couldn't escape the downturn either. His fund returned -1.81%, despite maintaining a more diversified approach across 287 holdings. While Soros&#8217; 3-year return of 13.11% remains solid, the first quarter slip suggests even global tacticians weren't spared by the market's crosscurrents.



Bill Ackman's Pershing Square also struggled, dropping -2.72% in the first quarter. With a razor-sharp portfolio of just 12 holdings &#8211; and an eye-popping 99.5% concentration &#8211; Ackman's approach didn't offer much defense this quarter. His 5-year annualized return of 16.88% still towers over peers, but the first quarter was a rare off note.



Bottom line? 



The billionaire investors who thrived on bold bets and long-term conviction were handed a reality check. The first quarter wasn't about who&#8217;s biggest &#8211; it was about who could adapt. And for once, the billionaires blinked.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/hedge-funds/25/05/45447966/ray-dalios-bridgewater-dumps-spy-trims-nvidia-meta-alphabet-bearish-vibes">Ray Dalio&#8217;s Bridgewater Dumps SPY, Trims Nvidia, Meta, Alphabet — Bearish Vibes?</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Buffett, Ackman, Icahn Take A Beating As Billionaires Weather Q1 Chaos

Moody's Ratings has officially stripped the U.S. of its final AAA credit score — the highest mark of financial credibility — sparking political uproar and media alarm, yet market analysts and economists widely believe it will have limited impact on <a href="https://www.benzinga.com/topic/expert-ideas">the broader financial system.</a>



<h3 class="wp-block-heading">What Did Moody's Decide About US Credit Rating?</h3>



Moody's cut the U.S. long-term sovereign credit rating to Aa1 from Aaa on Friday, citing sustained fiscal deficits, rising debt burdens and growing interest costs. 



The agency criticized "successive U.S. administrations and Congress" for failing to implement a credible debt reduction strategy.



This move aligns Moody's with Fitch Ratings, which downgraded the U.S. in August 2023, and S&amp;P Global Ratings, which cut the rating back in 2011. 



For the first time, all three major credit agencies have the U.S. rated below AAA.



<figure class="wp-block-table is-style-regular"><table class="has-fixed-layout"><thead><tr><th>S&amp;P</th><th>Moody&#8217;s</th><th>Fitch</th></tr><tr><th>AA+</th><th>Aa1</th><th>AA+</th></tr></thead></table></figure>



<h3 class="wp-block-heading">Do Markets Care This Time?</h3>



"This downgrade won't force anybody to do anything on Monday," said Jim Bianco of Bianco Research. 



He noted that after S&amp;P&#8217;s 2011 downgrade caused market disruption due to contract language requiring AAA-rated collateral, those rules were rewritten. "Now, these contracts reference ‘government securities,' not ratings," he said.



Bianco added, "So technically it didn't even change the US's overall credit rating because it was already split rated AA+. Now it's unanimous AA+. Nothing changed."



<h3 class="wp-block-heading">Debt Concerns Are Misguided</h3>



Macro analyst Alfonso Peccatiello also challenged the logic behind the downgrade. He indicated that U.S. debt in its own currency is not inherently dangerous. 



"Any government doing deficit spending and issuing bonds in its own currency—like the U.S.—isn't walking into an abyss of doom," Peccatiello said. "It's just choosing to stimulate the economy by printing money for the private sector."



Addressing concerns about the $1 trillion annual interest burden, he said this is simply money being transferred from the government to investors holding Treasury bonds. 



"For every dollar the U.S. pays in interest, there is an investor making that dollar," he said, framing it as a redistribution within the economy, not a red flag of insolvency.



Peccatiello explained that U.S. Treasuries continue functioning as high-quality liquid assets for banks under Basel regulations.



"The downgrade to AA+ wouldn't make any difference," he said, as government bonds rated between AAA and AA- carry the same 0% risk weighting under Basel's framework.



He said rising deficits only become problematic when they cause inflation or resource scarcity—not because of arbitrary credit score thresholds.



According to Peccatiello, long-term bond yields are already pricing in much of the fiscal outlook, making current levels—particularly 30-year Treasuries above 5.25%—increasingly attractive for accumulation.



<h3 class="wp-block-heading">More Politics Than Panic</h3>



Economist Mohamed El-Erian called the move "historic," but said it was unlikely to shake global markets. 



However, he added that the downgrade "amplifies the conversation about America&#8217;s political ability to address its fiscal deficit and debt trajectory."



El-Erian&#8217;s view mirrors market action: U.S. Treasuries remain the most trusted collateral globally, and their deep liquidity shields them from dramatic dislocations.



<h3 class="wp-block-heading">Political Reactions And The Trump Administration's Position</h3>



Treasury Secretary Scott Bessent, speaking on CNBC, called Moody's decision "a lagging indicator." 



He said, "We inherited a 6.7% deficit-to-GDP ratio, the highest when we weren't in a recession or at war. We are determined to bring spending down."



Bessent added that foreign capital flows remain robust. "Saudi Arabia, Qatar, and the UAE are pushing more and more money into the U.S., with 10-year investment plans," he said.



<h3 class="wp-block-heading">Wall Street Shakes On The Downgrade</h3>



Despite widespread commentary downplaying Moody's downgrade of U.S. debt, investors reacted defensively in Monday's premarket, with major equity futures sliding and high-growth tech stocks leading losses.



S&amp;P 500 futures fell 1%, while Nasdaq 100 contracts dropped 1.5%, signaling a risk-off tone ahead of the Wall Street open.



Among mega-cap stocks, the worst-hit names in premarket trading:



<ul class="wp-block-list">
<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) declined 2%. </li>



<li>Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) dropped 4.4%.</li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) declined 3.9%.</li>



<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) slipped 2.9%.</li>



<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) lost 2.7%.</li>



<li>United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) fell 2%.</li>
</ul>



The 30-year U.S. Treasury yield jumped 10 basis points to 5%, hitting its highest level since October 2023. The spike in yields reflects investor concerns over the long-term fiscal trajectory and a higher-for-longer interest rate environment.



The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)—a popular proxy for long-dated U.S. bonds—fell 1.6% in premarket trading, continuing a trend of weakness in duration-sensitive assets.



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45489038/us-stocks-likely-to-open-lower-after-moodys-downgrade-bear-market-isnt-fully-recovered-yet-but-it-is-close-says-expert">US Stocks Likely To Open Lower After Moody&#8217;s Downgrade: &#8216;Bear Market Isn&#8217;t Fully Recovered Yet, But It Is Close,&#8217; Says Expert</a></li>
</ul>



Image: Shutterstock

AMZN

AVGO

NVDA

PLTR

TSLA

America's Credit Strength Just Got Cut Again: Should You Panic?

On Monday, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang took center stage at Computex 2025 in Taipei with <a href="https://www.benzinga.com/media/25/05/45426637/nvidia-ceo-jensen-huang-expected-to-unveil-new-ai-alliances-at-computex-2025-as-geopolitical-pressures-persist-over-tech-sector">a sweeping keynote that revealed</a> the company's aggressive roadmap to power the next era of artificial intelligence — from personal AI supercomputers to an ambitious AI infrastructure hub in Taiwan.



What Happened: Speaking to a packed Taipei Music Center, Huang was wearing his trademark leather jacket. After taking the stage, he noted that among the audience at the Taipei Music Center are "my parents."&nbsp;



Huang also openly expressed his deep affection for his homeland, Taiwan. He remarked, "Taiwan, which I have been visiting for over 30 years, is the hometown of our invaluable partner corporations. We are working together to open the AI ecosystem," he stated.



The Nvidia CEO then gave a brief description of the company's journey and growth milestones over the years. "We realize now, we're an AI infrastructure company. An infrastructure company that's essential all around the world," he stated at some point while talking about the same.



See Also: <a href="https://www.benzinga.com/media/25/05/45487329/nvidias-jensen-huang-gets-rockstar-welcome-in-taiwan-pop-up-merch-screaming-fans-and-jet-parking-drama">Nvidia&#8217;s Jensen Huang Gets Rockstar Welcome In Taiwan — Pop-Up Merch, Screaming Fans And Jet Parking Drama</a>



Key announcements included the RTX 5060 GPU alongside a new MSI laptop equipped with the same chip, the DGX Spark desktop AI workstation, and NVLink Fusion — a groundbreaking interconnect technology that lets other chipmakers integrate Nvidia's systems into their own infrastructure.



Huang also announced that Nvidia will <a href="https://www.benzinga.com/25/05/45487650/nvidia-tsmc-and-apple-supplier-foxconn-partner-to-develop-taiwan-ai-supercomputer">develop AI infrastructure for a large-scale</a> supercomputing ecosystem in collaboration with Foxconn, Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), and Taiwan's National Science and Technology Council, or NSTC.



The CEO also introduced Nvidia Constellation, a new office in Taipei's Beitou district.



During his presentation, Huang also shifted focus to accelerated computing, highlighting Nvidia's CUDA-X libraries as a core part of the company&#8217;s broader ecosystem. Emphasizing that Nvidia's innovation extends beyond GPUs, he showcased platforms like Earth-2 for climate modeling and Megatron Dynamo for deep learning.



In robotics, Huang showcased the Isaac Groot platform and Newton engine, enabling robots to learn real-world navigation and human-like actions via simulation. He also revealed that Nvidia's RTX Server Pro would support DeepSeek's R1 model.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="NVIDIA CEO Jensen Huang Keynote at COMPUTEX 2025" width="500" height="281" src="https://www.youtube.com/embed/TLzna9__DnI?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Why It&#8217;s Important: Nvidia is set to report its first-quarter earnings on May 28 after the market closes. Analysts, as per <a href="https://www.benzinga.com/pro/login">Benzinga Pro</a>, anticipate earnings of 89 cents per share on revenue totaling $43.07 billion.



Nvidia currently holds a consensus price target of $172.32, based on ratings from 39 analysts. The highest target, $220, was issued by Rosenblatt on Feb. 24, 2025.



The three latest updates by B of A Securities, UBS, and Seaport Global have set an average price target of $145, suggesting an implied upside of 11.07%.



Price Action: As of the time of writing, during Monday's pre-market session, Nvidia shares were down 3.57%, trading at $130.57.



According to Benzinga Edge Stock Rankings, Nvidia holds an impressive growth score of 95.02%. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here to see how it stacks up against other top tech firms</a>.



<figure class="wp-block-image aligncenter size-full is-resized"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/19045408/Screenshot-2025-05-19-at-2.24.03%E2%80%AFPM.png" alt="" class="wp-image-919465" style="width:381px;height:auto"/></a></figure>



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45486464/nvidias-quantum-pivot-chip-giant-reportedly-mulls-major-stake-in-psiquantum-amid-rising-global-interest">Nvidia&#8217;s Quantum Pivot? Jensen Huang-Led Chip Giant Reportedly Mulls Major Stake In PsiQuantum</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: jamesonwu1972 / Shutterstock.com

Jensen Huang Reveals RTX 5060, DGX Station, Nvidia Constellation And More At Computex 2025: 'We Realize Now, We're An Infrastructure AI Company'

On May 12, President Donald Trump followed through on a campaign promise by signing an Executive Order (EO) mandating that pharmaceutical companies lower their prescription drug prices in the US to those seen abroad.



At a media event, Trump told reporters he was aiming for price cuts of between 59% and 90% and gave drug companies 30 days to play ball.



Wall Street digested the news, and while major biopharma stocks saw share prices drop the day the EO was announced, most industry stocks rebounded.&nbsp;



Here are three pharma stocks that won&#8217;t just rebound, but are poised to soar because of Trump&#8217;s executive order.



<h1 class="wp-block-heading">Team Trump on Solid Ground?</h1>



Nobody&#8217;s denying that US drug prices are out of whack. A 2024 RAND Corporation study concluded US drug prices were approximately three times higher than those in 33 other developed countries.



Presidents have full power to order such a price cut from a private industry, at least in part.



&#8220;That&#8217;s especially the case in sectors like healthcare where government programs like Medicare are massive buyers,&#8221; said Lou Carter, founder and CEO at the Best Practice Institute in Palm Beach Gardens, Fla. &#8220;Policy isn&#8217;t just about law—it&#8217;s about leverage. This EO uses the weight of public programs to force pricing accountability, and that&#8217;s smart business when you&#8217;re managing taxpayer funds.&#8221;



Congress and the courts can try to stop the EO in its tracks, but success on that front is unlikely.&nbsp;



&#8220;Politically, it&#8217;s tough to argue against lower drug prices,&#8221; Carter said. &#8220;Even if pharma lobbies hard, most lawmakers know it&#8217;s political suicide to oppose something that helps seniors afford insulin. If this goes to court, it&#8217;ll hinge on procedural questions—not on whether the move is popular or right.&#8221;



<h1 class="wp-block-heading">Bigger Drug Makers are Hardest Hit</h1>



Given the size and scope of the EO, it&#8217;s no surprise that the more substantial drug companies may find themselves in financial trouble.&nbsp;



&#8220;Large-cap biotech and specialty pharma companies with heavy Medicare exposure like Amgen (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) or Regeneron (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>) could be hit hardest,&#8221; said Dr. Will Soliman, Founder and CEO of the New York City-based Accreditation Council for Medical Affairs. &#8220;They rely on high-margin (Medicare) Part B drugs.&#8221;



Vertical-oriented drug makers could also feel the heat from the EO.&nbsp;



&#8220;Specialized oncology manufacturers like Bristol Myers Squibb (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) have greater exposure than diversified pharmaceutical companies with broader portfolio ranges,&#8221; said Seann Malloy, founder and managing partner of Malloy Law Offices in Bethesda, Md. &#8220;Small to mid-cap biotechnology companies with early commercial products often fall outside immediate impact zones due to limited Medicare utilization and existing price protection provisions. &#8220;



&#8220;The executive order&#8217;s key element mandates that Medicare&#8217;s prescription drug payments align with the lowest prices in other developed countries, essentially using international reference pricing,&#8221; Malloy said. &#8220;While some demonstration projects will start within 30 days, full implementation across all provisions will take longer, likely 6-12 months, due to necessary regulatory development. &#8220;



Timing could play a big role in determining how much of an impact the EO will have on biotech drug stocks, if any.



Initially, the order focuses on physician-administered drugs under Medicare Part B but may later include retail prescriptions under Part D. &#8220;This staged implementation means the immediate and long-term market effects will differ, a point often missed by investors,&#8221; Malloy noted. &#8220;Despite initial impressions of swift price changes, significant revenue impacts will likely be delayed by extensive regulatory procedures.&#8221;



Additionally, overseas drug providers may face stiff headwinds from the Trump drug price directive.



&#8220;International manufacturers are most vulnerable,&#8221; said Javier Palomarez, founder and CEO of the United States Hispanic Business Council. &#8220;Many of them ship to the United States because of the return on investment &#8211; eroding that return dampens the incentive and ability to ship medicines across the world, which could lead to total loss of US market access for some companies.&#8221;



<h1 class="wp-block-heading">Three Drug Stocks That Bear Watching Over the Next 30 Days</h1>



Biotech investors looking to leverage the Trump EO should understand Trump&#8217;s intention to &#8220;cut out the middleman,&#8221; as he said in his May 12 press event. This translates to good news for actual drug manufacturers and not-so-good news for so-called pharmacy-benefit managers.



PBM&#8217;s act as intermediaries between health insurance companies, big employers, drug manufacturers, insurers, and patients. While they don&#8217;t produce prescription drugs, they handle the more mundane side of the drug business, like claims processing and negotiating prescription drug prices.



The big drug producers have historically blamed the PBMs for sky-high drug prices and would likely back any initiative that expands the direct-to-consumer drug marketplace. In that scenario, no insurers are needed, as drug consumers could deal directly with drug manufacturers to buy the medicines they need, presumably at a more affordable price.



Investors in that marketplace would want large drug makers, and big PBMs would not. These three drug stocks stand out on the plus side.



<h2 class="wp-block-heading">Eli Lilly</h2>



Drug manufacturing giant Eli Lilly (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) is priced high at $730 per share, but it&#8217;s a stock that would likely prosper in a direct-to-consumer prescription drug marketplace. The stock is off by 5.0% year-to-date, but 26 Wall Street analysts who track LLY give it a top rating. The company&#8217;s recent earnings per share are off the charts, with an upward spike of 106% in EPS in 2024 and an estimated 68% in 2025. The stock is off 20% compared to recent highs, which could mean a nice discount for a drug industry stalwart.



<h2 class="wp-block-heading">Novo Nordisk</h2>



Novo Nordisk (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) has experienced market woes that preceded the Trump E/O, as competitors continue to chew into market share in the lucrative weight loss drug market. Particularly damaging was a recent study that concluded patients taking Eli Lilly&#8217;s Zepbound were losing weight faster than with Novo&#8217;s Wegovy. That&#8217;s one big reason Novo Nordisk has seen its share price fall by 50% over the past year. Yet the stock is in rebound mode right now, up 13.9% over the past month. A $2.2 billion deal between Novo and Septerna (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEPN#NASDAQ">SEPN</a>) to develop weight loss pills is seen as a big step by analysts and big names like Goldman Sachs and JP Morgan are sticking to their buy calls on the stock. Meanwhile, a larger group of industry analysts is out with a consensus 50% share price upside from current levels.



<h2 class="wp-block-heading">AbbVie</h2>



AbbVie (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) is a genuine cash flow producer that seems immune to any political interference from Washington, D.C. The drug manufacturer has a diverse set of popular prescription drugs, like Botox, Humira, Rinvoq, and Skyrizi. The stock only fell by a paltry 1% on the E news this week, and is up 5% over the past month. It also comes with a healthy 3.6% dividend for income-minded investors, a robust drug pipeline in play, and a brand new regulatory &#8220;green light&#8221; for its lung cancer drug Emrelis, supporting the rationale that ABBV shares should continue to climb in 2025.



<a href="https://benzinga.zoom.us/webinar/register/WN_OJ2FBspHSJSSVNlW8zGapw/?utm_campaign=webinar052025&amp;utm_adType=sponsorad&amp;utm_ad=RD051925/?el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">Smart Options Plays for Traders Watching Junk Bonds</a> Credit markets are breaking down. Volatility is back. Join Ryan Faloona, Anne-Marie Baiynd, and Tim Melvin live on May 20 at 6 PM ET to see how seasoned traders are using junk bond signals and short-term options to hedge, profit, and stay a step ahead. <a href="https://benzinga.zoom.us/webinar/register/WN_OJ2FBspHSJSSVNlW8zGapw/?utm_campaign=webinar052025&amp;utm_adType=sponsorad&amp;utm_ad=RD051925/?el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">Save your seat for this live tactical session.</a>



Image via Shutterstock

ABBV

AMGN

REGN

SEPN

3 Stocks That Will Profit From Trump's Drug Price Cut

It's downgrade déjà vu. Late Friday, after Wall Street had already packed up for the weekend, Moody's quietly dropped the hammer: the U.S. just got its <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">credit rating cut from Aaa to Aa1</a>.



If this feels familiar, that's because it is &#8211; and the market's playbook has been pretty consistent. The real question now: Will the market freak out for the third time, or has it finally learned to chill?



<h2 class="wp-block-heading">Another 10% Correction Coming?</h2>



Let's rewind.



In August 2011, Standard &amp; Poor's made history by downgrading U.S. debt for the first time ever. The result? A 10.37% drop in the S&amp;P 500 Index over the next 41 trading days, <a href="https://x.com/adamkhootrader/status/1923970924589744439">according</a> to data analyzed by Piranha Profits. But fast forward 12 months, and the index was up 36%. Investors who bought the dip didn't just survive &#8211; they thrived.



Then came August 2023, when Fitch pulled the same move. Same script, different year. The S&amp;P 500 slid 10.31% over 58 trading days. But again &#8211; patience paid off. One year later, stocks were up a cool 37%.



Now, here comes Moody's, joining the downgrade party. And yes, if the market follows precedent, we could be looking at another 10% correction.



Read Also: <a href="https://www.benzinga.com/markets/equities/25/05/45486452/jim-cramer-recalls-2011s-6-7-market-decline-after-us-debt-downgrade-says-it-ultimately-meant-nothing-dan-niles-sees-limited-downside-amid-tariff-rollbacks-fomo">Jim Cramer Recalls 2011&#8217;s 6.7% Market Decline After US Debt Downgrade, Says It &#8216;Ultimately Meant Nothing:&#8217; Dan Niles Sees Limited Downside Amid Tariff Rollbacks, FOMO</a>



<h2 class="wp-block-heading">Bulls Have Reasons To Shrug This One Off &#8211; But Will They?</h2>



But here's the twist &#8211; after two prior false alarms, has Wall Street stopped reacting to credit downgrades like it's the end of the world? After all, these cuts haven't exactly spelled disaster in the long run. Quite the opposite.



And let's not ignore the context: strong earnings from tech giants, resilient consumer spending, and cooling inflation may give bulls a reason to shrug this one off.



But if markets do panic on Monday, history suggests it could be yet another gift-wrapped opportunity to scoop up high-quality stocks at a discount.



Because if there's one thing we've learned, it's this: America's credit rating may slip &#8211; but investor memory tends to fade faster than a market dip lasts.



For investors holding broad S&amp;P 500 ETFs like SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), the Moody's downgrade may feel unsettling at first glance &#8211; especially heading into Monday's open. But history offers a useful compass. During the past two U.S. debt downgrades in 2011 and 2023, the S&amp;P 500 fell over 10% within two months, only to surge more than 35% over the following year. If markets follow a similar playbook, any short-term volatility could prove to be a golden buying window for long-term investors. 



In other words, don't be surprised if passive index investors wind up thanking Moody's by this time next year.



Will Wall Street overreact a third time? 



Or has the market finally grown up? 



We'll find out Monday.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45488403/moodys-had-an-investment-grade-rating-on-us-debt-during-2008-global-financial-crisis-recent-cut-not-a-huge-shock-says-expert">Moody&#8217;s Had An Investment Grade Rating On US Debt During 2008 Global Financial Crisis: Recent Cut &#8216;Not A Huge Shock,&#8217; Says Expert</a></li>
</ul>



Photo: Shutterstock

Long Ideas

S&P 500 History Suggests 10% Drop After Downgrade — Followed By 35% Rally

U.S. stock futures dipped on Monday after closing higher for the day and the week on Friday. Futures of major benchmark indices were trading lower in premarket.



The S&amp;P 500 index recorded its fifth day of gains on Friday after turning positive for the year at the beginning of the previous week.



However, <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">Moody&#8217;s Ratings downgraded</a> the United States&#8217; long-term credit rating, from Aaa to Aa1 and shifted its outlook from &#8220;negative&#8221; to &#8220;stable.&#8221;



This decision means the U.S. has now lost its top-tier &#8220;triple-A&#8221; rating from all three major credit agencies, following similar downgrades by Fitch and S&amp;P Global.



Meanwhile, the 10-year Treasury bond yielded 4.54% and the two-year bond was at 4.00%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 91.7% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.92%</td></tr><tr><td>S&amp;P 500</td><td>-1.32%</td></tr><tr><td>Nasdaq 100</td><td>-1.74%</td></tr><tr><td>Russell 2000</td><td>-1.72%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Monday. The SPY was down 1.21% to $587.00, while the QQQ declined 1.63% to $513.00, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Fueled by tech giants like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), the Nasdaq Composite led the charge with a robust 7.2% gain last week, contributing to a broad market rally.



U.S. stocks finished higher on Friday, marking the S&amp;P 500&#8217;s fifth consecutive session of gains and a 5.3% weekly increase. The Dow also added 3.4% for the week.



While most S&amp;P 500 sectors closed positively on Friday, with healthcare, utilities, and real estate leading, energy stocks declined.



Economic data revealed a dip in U.S. consumer sentiment but a slight increase in both import and export prices for April. Apple also saw a ~6% gain last week.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.52%</td><td>19,211.10</td></tr><tr><td>S&amp;P 500</td><td>0.70%</td><td>5,958.38</td></tr><tr><td>Dow Jones</td><td>0.78%</td><td>42,654.74</td></tr><tr><td>Russell 2000</td><td>0.89%</td><td>2,113.25</td></tr></tbody></table></figure>



Insights From Analysts:



Ryan Detrick from Carson Research highlighted in an X post that the &#8220;bear market isn&#8217;t fully recovered yet, but it is close.&#8221;



According to the data shared by him, the bear markets between November 1980 to August 1982 and March 2000 to October 2002 staged the quickest recoveries, within three months.



&#8220;Should it happen soon, this will be the quickest recovery ever from a bear or near bear market.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">No, this near bear market isn&#39;t fully recovered yet, but it is close. Should it happen soon, this will be the quickest recovery ever from a bear or near bear market. <a href="https://t.co/rbtma7WLYH">pic.twitter.com/rbtma7WLYH</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1924301522550071551?ref_src=twsrc%5Etfw">May 19, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Meanwhile, CNBC's Jim Cramer <a href="https://www.benzinga.com/markets/equities/25/05/45486452/jim-cramer-recalls-2011s-6-7-market-decline-after-us-debt-downgrade-says-it-ultimately-meant-nothing-dan-niles-sees-limited-downside-amid-tariff-rollbacks-fomo">recalled that</a> "the market dropped 6.7% after the last downgrade back in 2011, but it, ultimately, meant nothing." Despite weeks of market decline following that event, Cramer emphasized investors "had to stay the course." 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As I write a draft for the CNBC investing club for our meeting on Wednesday i am mindful that the market dropped 6.7% after the last downgrade back in 2011 but it, ultimately, meant nothing and while the market kept falling for weeks you had to stay the course&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1924128885228085605?ref_src=twsrc%5Etfw">May 18, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Dan Niles, founder of Niles Investment Management, expects less severe market reactions this time. "Prior debt downgrades have been followed by S&amp;P drops of 8-10%," Niles noted, adding that "today, tariff rollbacks is driving a pickup in the economy &amp; the decline should be less."



Niles believes current conditions differ significantly. "Unlike in 2023 or 2011, the economic environment is improving around this debt downgrade," he wrote, citing reduced China tariffs driving trade resumption.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on this week:



<ul class="wp-block-list">
<li>On Monday, New York Fed President John Williams and Fed Vice Chair Philip Jefferson will speak at 8:45 a.m. ET.</li>



<li>April&#8217;s U.S. leading economic indicators will be out by 10:00 a.m. ET.</li>



<li>On Tuesday, Richmond Fed President Tom Barkin will speak at 9:00 a.m., Boston Fed President Susan Collins will participate in the &#8216;Fed Listens&#8217; event at 9:30 a.m., St. Louis Fed President Alberto Musalem will speak at 1:00 p.m., and Federal Reserve Governor Adriana Kugler will speak at 5:00 p.m. ET.</li>



<li>On Wednesday, Richmond Fed President Tom Barkin and Fed Governor Michelle Bowman will take part in the &#8216;Fed Listens&#8217; event at 12:15 p.m. ET.</li>



<li>On Thursday, initial jobless claims data for the week ending May 17 will be out by 8:30 a.m. ET.</li>



<li>The S&amp;P flash U.S. services and manufacturing PMI for May will be released by 9:45 a.m. ET.</li>



<li>April&#8217;s existing home sales will be announced by 10:00 a.m. ET.</li>



<li>New York Fed President John Williams will speak at 2:00 p.m. ET.</li>



<li>On Friday, Kansas City Fed President Jeff Schmid will speak at 9:35 a.m., new home sales data for April will be out by 10:00 a.m., and Federal Reserve Governor Lisa Cook will speak at 12:00 p.m. ET.</li>



<li>On Sunday, Federal Reserve Chair Jerome Powell will deliver his commencement address at 2:40 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Trip.com Group Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>) rose 1.11% in premarket on Monday as analysts expect it to report quarterly earnings of 86 cents per share on revenue of $1.91 billion, after the closing bell.</li>



<li>ZIM Integrated Shipping Services Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIM#NYSE">ZIM</a>) dropped 1.31% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of $1.87 per share on revenue of $1.85 billion.</li>



<li>Global Ship Lease Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) was up 0.36% as analysts expect it to report quarterly earnings of $2.31 per share on revenue of $175.23 million, before the opening bell.</li>



<li>Paychex Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAYX#NASDAQ">PAYX</a>) was 0.62% lower after disclosing that its founder, Thomas Golisano, will step down from the company&#8217;s Board of Directors, effective after the board's July meeting.</li>



<li>Interactive Strength Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRNR#NASDAQ">TRNR</a>) jumped 15.40% after CEO Trent Ward and Sportstech CEO Ali Ahmad provided insights ahead of their first quarter earnings report, highlighting the early integration progress of TRNR&#8217;s pending acquisition of Sportstech and Wattbike.</li>



<li>Novavax Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) jumped 15% after the FDA gave its conditional approval to its COVID-19 vaccine, targeting specific populations under particular conditions.</li>



<li>Bit Origin Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BTOG#NASDAQ">BTOG</a>) dropped 13.27% after announcing the date for its hearing to consider confirming the company&#8217;s proposed share capital reduction, which was approved by special resolution on March 14, 2025.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.53% to hover around $61.63 per barrel.



Gold Spot US Dollar rose 1.30% to hover around $3,243.83 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.80% at the 100.2840 level.



Asian markets ended lower on Monday as South Korea's Kospi, Australia's ASX 200, Japan's Nikkei 225, Hong Kong's Hang Seng, India's S&amp;P BSE Sensex, and China&#8217;s CSI 300 indices declined. European markets were also lower in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45487788/trumps-drug-price-order-hits-pbms-hardest-cvs-cigna-unh-in-focus-as-experts-highlight-racket-and-pricing-distortion">Trump&#8217;s Drug Price Order Hits PBMs Hardest: CVS, Cigna, UNH In Focus As Experts Highlight &#8216;Racket,&#8217; Pricing Distortion</a></li>
</ul>



Photo courtesy: Shutterstock

Guidance

BTOG

PAYX

TCOM

TRNR

US Stocks Likely To Open Lower After Moody's Downgrade: 'Bear Market Isn't Fully Recovered Yet, But It Is Close,' Says Expert

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