Stock Market Update Monday May 5, 2025

Stock Market Update Monday May 5, 2025 Markets Reverse Gains in Late Session; Risk Sentiment Weakens Equity markets opened under pressure but attempted to recover throughout the trading session, with the S&P 500 briefly testing levels that would have marked its 10th consecutive daily gain. However, a wave of late-session selling reversed intraday momentum, pushing the major indices into negative territory by the close. The pullback leaves the S&P 500 essentially flat relative to its open, as profit-taking and positioning ahead of key macro events likely contributed to the afternoon fade.

• S&P 500 (SPX): -0.6%

• Nasdaq-100 (QQQ): -0.7%

• Russell 2000 (IWM): -0.8%

Away From Stocks: In the bond market, long-duration Treasurys faced renewed selling, with the 30-year yield rising 4 basis points to 4.83%, reflecting ongoing sensitivity to inflation expectations and supply concerns. Shorter-duration yields remained stable, with the 2-year note unchanged at 3.83%, suggesting steady policy rate expectations.

Commodities offered mixed signals:

• WTI crude continued to struggle for support, failing to hold a bid near $57/barrel, signaling persistent demand concerns or oversupply pressures.

• Gold surged nearly 3% to $3,331/oz, likely buoyed by haven flows and a softer dollar.

• Bitcoin retreated below $94,000, marking a pause in its recent rally amid broader risk-off sentiment.

• The VIX rose by one point to 24, signaling a modest uptick in implied volatility as equity markets lose near-term momentum.

S&P500 SPY ETF Daily Chart

Markets Brace for Fed Week Amid Policy Crosscurrents

The Federal Reserve's upcoming meeting this Tuesday and Wednesday is widely expected to leave interest rates unchanged. The Fed's official announcement will be released Wednesday at 2:00 p.m. ET, followed by a press conference with Chairman Jerome Powell, which is being closely watched.