U.S. Equities Turn Negative in Midday Trade Despite Early Momentum
After opening higher on May 9, U.S. markets reversed direction by midday, reflecting renewed caution amid ongoing macroeconomic and geopolitical developments. The S&P 500, which initially posted modest gains, slipped 0.2%, while the Dow Jones Industrial Average fell by approximately 209 points or 0.5%. The Nasdaq Composite also moved 0.2% lower, despite early strength in select technology and biotech names.
This reversal was attributed to profit-booking in key sectors, persistent concerns about U.S.-China relations, and disappointing earnings from prominent companies such as Expedia, which weighed on investor sentiment.
Highlights:
S&P 500: ↓ 0.2%
Dow Jones: ↓ 209 pts (↓ 0.5%)
Nasdaq Composite: ↓ 0.2%
Turnaround attributed to weak earnings, trade uncertainties
Stock Movers: Expedia Disappoints, Insulet Surges, Nvidia Falls on China Chip Report
Among notable stock movers on the S&P 500, Expedia tumbled nearly 7% following a below-par Q1 earnings report. While the online travel platform posted a 3% revenue growth to $2.99 billion, its results fell short of Street expectations. Earnings per share (EPS) rose 90% to $0.40, but the stock came under pressure amid cautious commentary on forward guidance.
Conversely, Insulet Corporation surged almost 19% after reporting a 28.8% increase in revenue to $569 million in its latest quarter, outperforming estimates and reinforcing investor confidence in the medical device segment.
Nvidia shares declined 0.73% following a Reuters report that the chipmaker plans to launch a downgraded version of its H20 AI chip for China within two months. The move comes amid U.S. export restrictions, and Nvidia’s stock has already lost nearly 19% over the past six months, reflecting investor unease about its China exposure.
Highlights:
Expedia: ↓ 7% after Q1 earnings miss
Insulet: ↑ 19% on strong 28.8% YoY revenue growth
Nvidia: ↓ 0.73% on H20 chip downgrade for China
Nvidia’s 6-month performance: ↓ 19%
Sector Performance Mixed: Energy Leads, Tech and Staples Lag
At the sectoral level, performance was mixed with Energy stocks gaining nearly 1%, supported by a bounce in crude oil prices as geopolitical focus turned toward the Middle East. Consumer discretionary and real estate sectors posted moderate gains of 0.39% and 0.57% respectively.
On the downside, consumer staples underperformed with a 0.65% decline, while technology and communication services dropped by 0.28% and 0.53%, respectively. Market analysts cited valuation concerns and weaker earnings momentum in big tech names for the drag on the tech-heavy Nasdaq.
Highlights:
Top gainers: Energy (+1%), Real Estate (+0.57%), Consumer Discretionary (+0.39%)
Lagging sectors: Consumer Staples (-0.65%), Tech (-0.28%), Communication Services (-0.53%)
Boeing, Chevron Among Dow Gainers; Trump Plans Mideast Visit
Despite the Dow trading in negative territory, stocks like Boeing, Chevron, 3M, and Caterpillar were among the few gainers, buoyed by expectations of infrastructure investment and rising energy prices.
Meanwhile, CNBC reported that U.S. President Donald Trump is scheduled to visit Saudi Arabia, Qatar, and the UAE to discuss the Israel-Gaza ceasefire, along with oil, trade, and investment agreements. The visit underscores U.S. efforts to stabilize geopolitical tensions and ensure global energy security.
Highlights:
Dow Gainers: Boeing, Chevron, 3M, Caterpillar
Trump’s Mideast trip: Focus on ceasefire, oil and trade talks
European Stocks End Higher on U.S.-UK Trade Deal, China Talk Optimism
In contrast to the U.S. midday downturn, European markets closed higher on Friday, buoyed by the announcement of a U.K.-U.S. trade agreement and optimism around the upcoming U.S.-China tariff talks.
The Stoxx Europe 600 rose 0.44%, with Germany’s DAX climbing 0.63% to 23,499.3, while London’s FTSE 100 added 0.27%. The trade deal, the first under the new U.S. tariff regime, boosted investor morale and lifted export-oriented European stocks.
Highlights:
Stoxx 600: +0.44%
Germany DAX: +0.63% to 23,499.3
UK FTSE 100: +0.27%
Boost from U.S.-UK trade deal and U.S.-China dialogue hopes
