Stock Market Update Wednesday May 21, 2025

Stock Market Update Wednesday May 21, 2025 Equities sold off sharply today as Treasury yields extended their climb, reigniting concerns around tightening financial conditions. The 10-year yield surged 10 basis points to 4.59%, eclipsing the April highs that followed the de-escalation of trade war rhetoric. Selling pressure intensified mid-session following a weak 20-year Treasury auction, but the bond market was already on edge after Friday’s Moody’s downgrade of the U.S. outlook and renewed fiscal concerns stemming from Washington’s latest spending package.

On the day:

• $SPX: -1.6%

• $QQQ: -1.3%

• $IWM: -2.6%

Rates moved higher, with the 10-year Treasury yield rising 10 basis points to 4.59%, marking a fresh multi-month high and reinforcing concerns over tightening financial conditions. In other markets, gold caught a bid as investors sought safety amid rising rates and equity volatility. Meanwhile, the U.S. Dollar Index (DXY) slipped below the key 100 level, settling at 99.62, reflecting some softness in the greenback. Volatility picked up notably, the VIX closing above the psychologically significant 20 handle today.