U.S. stocks pulled back Tuesday morning as Wall Street recalibrated expectations on growth and inflation amid rising fiscal risks tied to President Donald <a href="https://www.benzinga.com/topic/donald-trump">Trump's sweeping tax proposal.</a>



The S&amp;P 500 declined 0.4% to 5,935, potentially ending its six-day rally, while tech shares showed parallel losses. Small-cap equities held their ground, with the Russell 2000 trading flat.



Tensions are mounting in the U.S. House of Representatives, where lawmakers are locked in heated debates over Trump's proposed "One Big Beautiful Bill." The bill seeks to extend 2017 tax cuts, expand exemptions and overhaul federal spending, effectively tying tax relief to a reshaping of government priorities.



Trump has personally urged GOP lawmakers to back the bill, which he considers central to his second-term agenda.



&#8220;Alternative to not passing tax bill is massive tax hikes,&#8221; Trump said on Tuesday. 



Markets responded swiftly to the possibility of higher long-term government borrowing. The yield on the 30-year Treasury note rose seven basis points to 4.98%, a level not seen since March. As a result, the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) fell 0.9%.



Despite rising yields, gold rallied sharply by 1.8% to $3,280 per ounce, reversing nearly all of last week's losses. The safe-haven demand may reflect investor concern over mounting deficits and inflationary spillovers.



In energy markets, Henry Hub natural gas prices spiked over 9% to $3.39 per million British thermal units. Traders are betting on a demand rebound in case of an early summer heatwave, which could sharply increase air conditioning usage.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 0.4% to $105,000. 



<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S., Indices, ETFs</h1>



<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>Russell 2000</td><td>2,103.06</td><td>-0.1 %</td></tr><tr><td>Dow Jones</td><td>42,669.90</td><td>-0.3%</td></tr><tr><td>S&amp;P 500</td><td>5,943.01</td><td>-0.3%</td></tr><tr><td>Nasdaq 100</td><td>21,364.43</td><td>-0.4%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:20 p.m. ET</figcaption></figure>



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>) edged 0.4% down to $592.44.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.3% to $426.57.</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;fell 0.5% to $519.28.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.11% up to $209.20.</li>



<li>The&nbsp;Utilities&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was down 0.032%; the&nbsp;Real Estate&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down 0.8%.</li>
</ul>



<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>



<ul class="wp-block-list">
<li>Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) slipped 0.5%, even as <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45519467/microsofts-4-trillion-moment-is-now-in-sight-goldman-sachs">Goldman Sachs lifted</a> its price target from $480 to $550.</li>



<li>Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) soared 17% in reaction to quarterly earnings. </li>



<li>Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) inched 0.5% after marginally missing Street&#8217;s estimates. </li>



<li>Stocks slated to report earnings after the close include Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and Keysight Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEYS#NYSE">KEYS</a>) Read Now: • <a href="https://www.benzinga.com/25/05/45517783/magnificent-7-stun-the-street-with-the-best-earnings-beat-since-2021">Magnificent 7 Stun The Street With Best Earnings Beat Since 2021</a> Photo: Shutterstock<a href="https://www.benzinga.com/25/05/45517783/magnificent-7-stun-the-street-with-the-best-earnings-beat-since-2021"> </a> </li>
</ul>

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Wall Street Falls As 30-Year Treasury Flirts With 5% Yield: What's Driving Markets Tuesday?

Cryptocurrency analyst Benjamin Cowen says Bitcoin's (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) soon-to-form golden cross could act as a local market peak rather than a signal of <a href="https://www.benzinga.com/money/bitcoin-price-prediction">a sustained rally</a>.



What Happened: In his update published on YouTube on May 19, Cowen <a href="https://www.youtube.com/watch?v=V3AHyJn1c9k">noted</a> "We're going to have a golden cross within the next few days," highlighting that the gap between the 50-day and 200-day SMAs has narrowed from $1,600 to just $600, signaling imminent crossover.



While 2023 and 2024 golden crosses led to immediate upside, earlier market cycles often saw a pattern where Bitcoin &#8220;rallied into the golden cross and then dumped right after it,&#8221; Cowen highlighted.



Cowen warns that earlier cycles—such as 2019 and 2020—show Bitcoin often rallies into a golden cross, only to sell off shortly afterward. "If Bitcoin fails to set a higher high around or after the golden cross, we could repeat 2024's pattern of lower highs and lower lows," Cowen said.



He added that Q3 is often a seasonally weak period for Bitcoin, making the timing of this golden cross particularly critical.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45503054/jack-dorsey-backs-renaming-bitcoins-smallest-unit-bits-calls-satoshi-confusing">Jack Dorsey Backs Renaming Bitcoin&#8217;s Smallest Unit &#8216;Bits,&#8217; Calls &#8216;Satoshi&#8217; Confusing</a>



What's Next: Cowen identifies $90,000 to $93,000 as critical support. This zone aligns with several technical markers &#8211; the 20-week simple moving average and 21-week exponential moving average (bull market support band) and the 50-day and 200-day SMAs.



For investors worried about downside risk, Cowen still favors Bitcoin over altcoins, noting BTC is currently trading just 2% below its all-time high, while altcoins remain 23–24% off their peaks. 



He emphasized that Bitcoin provides the best risk-reward profile: "Bitcoin gives you exposure to the upside while minimizing downside risk."



He also pointed out that Bitcoin dominance tends to rise during sideways or bearish conditions, seen clearly in summer consolidations of both 2023 and 2024 and expects that pattern to hold if the market enters another cooling phase.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45519909/bitcoin-vs-ethereum-try-btc-eth-why-smart-money-bets-on-both">Bitcoin Vs. Ethereum? Try BTC + ETH &#8211; Why Smart Money Bets On Both</a></li>
</ul>



Image: Shutterstock

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News

Bitcoin Is About To Make A Golden Cross: What Happens Next?

Elon Musk does not follow. He builds, and others orbit.



This is not about fanfare. It is about historical cycles, timing, and the alignment of power, capital, and attention. My best stock pick for 2025 is Tesla (<a href="https://www.benzinga.com/quote/TSLA">TSLA</a>), because no other public company sits at the center of so many converging forces, artificial intelligence, energy independence, global mobility, and social engineering. I am also betting on the eventual IPO of X, Musk's media platform, which will stoke speculative capital and narrative momentum around all of his holdings. But Tesla will lead. Because it is already built, already producing, and already positioned.



Tesla will dominate this cycle not just because of Musk's name, but because of what Tesla now represents. It is no longer a car company. It is a machine-learning engine that happens to sell vehicles, solar arrays, home batteries, humanoid robots, and, soon enough, autonomous software. It is the operating system of physical civilization. Wall Street has not caught up yet. But markets are shaped by attention, and attention will shift.



Tesla will be the beneficiary of three unstoppable waves in 2025: capital realignment, public desperation for direction, and Musk's calculated media conquest.



The Capital Wave When rates drop, and they will, the money will return to tech first. It always does. Throughout modern financial history, capital seeks growth the moment the cost of holding money declines. In 2023 and 2024, the Federal Reserve held rates elevated to tame inflation and slow down excess speculation. What it also did was trap trillions of dollars on the sidelines, waiting. As inflation continues to cool into the second half of 2025, institutions will be forced to redeploy. There are only a few names with the scale, vision, and volatility profile that large capital craves. Tesla tops that list.



Historically, we have seen similar patterns. In the early 2010s, capital chased Facebook, Google, and Amazon, because they were building digital monopolies. From 2019 to 2021, the same capital chased Tesla because it finally proved it could produce cars at scale while delivering growth numbers that broke valuation models. When rates fell, Tesla ran from $90 to $400 pre-split. The market understood where the force was, even if the balance sheets did not fully justify it.



It is about direction. Tesla has direction. Investors want velocity. Musk delivers that.



The Cultural Wave Beyond capital, there is a vacuum forming. The average person no longer believes in media, politics, or even education. They are looking for a signal to follow. Musk has filled that role. He does not posture. He executes. He builds rockets. He fights on social media. He takes positions. This creates resentment, but also loyalty.



In 2022 and 2023, the cultural elite attempted to dismantle Musk's influence. He responded by owning Twitter, now X, and transforming it into the free speech epicenter of digital conversation. People laughed. Now governments post policy updates on X first. News outlets pay to remain visible. Political movements rise or fall by his reply. It is not just a platform anymore. It is a nervous system for the new power class.



In 2025, I expect Musk to bring X public. Not because he needs the money, but because he understands narrative. The IPO will be a spectacle. It will draw attention, and that attention will spill over into Tesla, because the public cannot, and will not, separate Elon's personal momentum from his public companies.



This happened before. When Musk tweeted about Dogecoin in 2021, the token went vertical. Not because of fundamentals, but because of presence. When he hosted SNL, ratings spiked. When he sells flame-throwers or perfumes, they sell out in hours. Whether it is serious engineering or satire, he captures the collective gaze. Tesla stock will move because the crowd follows energy.



The Engineering Wave Technologically, Tesla is years ahead. Not in design, but in data.



While legacy carmakers struggle to pivot to electric, Tesla is quietly amassing a global neural net from real-world driving. Their Full Self Driving (FSD) software is not just an idea. It is deployed. Every mile driven trains the algorithm. And Tesla does not pay users for that data, they pay Tesla. It is the most efficient data acquisition model in history.



Other automakers outsource their vision systems. Tesla owns theirs. Others rely on partnerships for battery systems. Tesla controls theirs. Others are just now realizing that vertical integration matters. Tesla proved it years ago. While competitors drown in supply chain confusion and regulatory compliance, Tesla scales with precision. The results are obvious, but the implications are greater. This is not about electric vehicles. This is about who owns the interface between machine and motion.



On top of that, Tesla's energy division is quietly expanding. Battery storage installations are rising. Powerwall adoption is climbing. As power grids strain and blackout warnings rise, Tesla becomes not just a car company, but a home infrastructure brand. This will not just protect margins, it will multiply them.



In short, Tesla is building the infrastructure backbone of the future, and the market has not priced that in.



The Counter-Narrative and Why It Will Fail Critics say the stock is overpriced. They point to price-to-earnings ratios, debt levels, and production hiccups. But this is not a value stock. It is not trying to be. Tesla is priced for a future that does not exist yet. That is the point.



Amazon was ridiculed in 2003 for trading at 3,000 times earnings. But it owned the rails of ecommerce. Netflix was mocked in 2010 for shifting to streaming. But it owned the distribution. Tesla is doing the same with AI-driven mobility and energy. The valuation is not wrong. The lens is.



This is not an endorsement of reckless optimism. This is an assessment of reality. Valuations are elastic. Markets reward acceleration and innovation when the environment favors it. In 2025, the conditions will align. Low rates, public fatigue, and technological hunger will drive Tesla forward.



The bears will remain stuck in spreadsheets. The winners will be the ones watching behavior.



Final Position I am buying Tesla now because I understand what Musk is doing. It is not a gamble. It is a force.



Tesla will surge not because of an ad campaign or quarterly surprise, but because it is the only public stock that functions like a movement. When the X IPO hits, when FSD goes wide, when capital returns to tech, there will be a revaluation.



By the time Wall Street catches up, it will be too late.



That is why <a href="https://www.benzinga.com/quote/TSLA">TSLA </a>is my top stock pick for 2025.



I am not investing based on hope.



I am investing because I understand attention, timing, and force.



#TSLA #X #ElonMusk #ArtificialIntelligence #ElectricVehicles #Leadership #StockMarket #Capital #Energy #Technology

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Why Tesla Is My Top Stock Pick For 2025: The Year of Elon Musk… Again

The Magnificent Seven – minus Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which is due to report earnings this week – delivered a stunning earnings beat in the first quarter of 2025, surpassing timid Street expectations and sending a clear message: the foundations of <a href="https://www.benzinga.com/tech">Big Tech's dominance remain firm.</a>



The six tech giants that have reported so far delivered an average EPS growth of 28% year over year — nearly three times the 9% pace seen across the rest of the S&amp;P 500.



They didn't just grow, they blew past expectations. Consensus estimates were exceeded by 16%, marking the most significant earnings surprise since the second quarter of 2021, when the group beat forecasts by 27%.



<h3 class="wp-block-heading">Big Tech Just Delivered Its Best Quarter In Four Years</h3>



Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) were standouts. Alphabet delivered 48.7% EPS growth and beat expectations by nearly 39%. Amazon posted a 62.2% earnings jump, crushing its EPS estimate by over 16%.



Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) followed with 36.5% growth, while Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) delivered 17.7%. Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) showed more modest growth of 7.8% but still edged out its target.



The laggard was Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), whose EPS fell 40% year-over-year, missing the mark by over 34%. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td></td><td>Reported EPS (Past Quarter)</td><td>YoY % growth</td><td>Expected EPS</td><td>Surprise (%)</td></tr><tr><td>Apple Inc.</td><td>$1.65</td><td>+7.8%</td><td>$1.627</td><td>1.4%</td></tr><tr><td>Microsoft Corp.</td><td>$3.46</td><td>+17.7%</td><td>$3.22</td><td>7.4%</td></tr><tr><td>Amazon.com Inc.</td><td>$1.59</td><td>+62.2%</td><td>$1.36</td><td>16.4%</td></tr><tr><td>Meta Platforms Inc.</td><td>$6.43</td><td>+36.5%</td><td>$5.2</td><td>22.8%</td></tr><tr><td>Alphabet Inc.</td><td>$2.81</td><td>+48.7%</td><td>$2.02</td><td>38.8%</td></tr><tr><td>Tesla Inc.</td><td>$0.27</td><td>-40%</td><td>$0.41</td><td>-34.1%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">MAGS ETF Rebounds, But Remains Underwater in 2025</h3>



The Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), a tracker of these tech titans, has surged 34% from its April 7 lows, outpacing the SPDR S&amp;P 500 ETF Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) 23% gain and Invesco QQQ Trust's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) 29% rally over the same period.



However, MAGS ETF remains 5% lower year-to-date. According to Dave Mazza, CEO at Roundhill Investments, this year&#8217;s drawdown reflected "increasing skepticism around valuations, sector concentration, and the growing impact of global trade disruptions." 



"These companies aren't speculative bets on future adoption," the expert noted. "They are the infrastructure of the real economy and, in some cases, staples within global consumers' lives."



Unlike previous cycles of concentrated market leadership, such as the Dot-Com boom, today&#8217;s leaders are not speculative growth stories but entrenched players in AI, cloud and automation.



Mazza highlighted that institutional flows into MAGS "remain relatively resilient," indicating long-term conviction hasn&#8217;t fully eroded.



All Eyes On Nvidia: The Final Piece Of The Puzzle



All eyes now turn to Nvidia, set to report earnings on May 28. 



Analysts expect EPS of $0.88, up 43% from the same quarter last year. Revenue estimates stand at $43.2 billion, which would represent a staggering 66% year-over-year increase. 



If those numbers hold, Nvidia could reinforce the Magnificent Seven's bullish narrative — and potentially lift the elite group of tech stocks into positive territory for the year.



Read now: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45513498/us-stock-futures-dip-after-sp-500s-six-day-streak-quick-recoveries-tend-to-see-stocks-rally-more-over-the-next-3-12-months-says-expert-citing-historical-data">US Stocks Likely To Open Lower After S&amp;P 500&#8217;s Six-Day Streak: &#8216;Quick Recoveries Tend To See Stocks Rally More Over The Next 3-12 Months,&#8217; Says Expert </a></li>
</ul>



Photo: Shutterstock

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Magnificent 7 Stun The Street With Best Earnings Beat Since 2021

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.



Photo: Shutterstock

AISP

APLD

RSVR

5 Stocks About To Short Squeeze As Market Rebounds

Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) traded higher Tuesday after reporting <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/n45513138/the-home-depot-announces-first-quarter-fiscal-2025-results-reaffirms-fiscal-2025-guidance" rel="noreferrer noopener">first-quarter 2025 results</a> and reaffirming its full-year outlook.



Sales rose 9.4% year over year to $39.86 billion, topping the $39.33 billion consensus. Adjusted earnings per share fell 3% to $3.56, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">missing the $3.60 estimate</a>.



Overall comparable sales declined 0.3%, with U.S. comps gained 0.2% year-over-year. Foreign exchange weighed on total comp sales by about 70 basis points. Customer transactions grew 2.1%.



Home Depot did not explicitly mention tariffs in its first-quarter press release, but updated its forward-looking statement compared to the fourth quarter by expanding risks to include "tariffs, trade policy changes or restrictions, or international trade disputes" and supply chain diversification in multiple clauses.



Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45503211/home-depot-q1-earnings-preview-tariffs-mortgage-comments-how-consumers-are-changing-their-spending-habits" rel="noreferrer noopener">Home Depot Q1 Earnings Preview: Tariffs, Mortgage Comments, How Consumers Are ‘Changing Their Spending Habits'</a>



Gross profit rose 8.3% year over year to $13.46 billion, with a margin of 33.8%, down 37 basis points.



Operating income increased 1.1% to $5.13 billion, while the operating margin fell to 12.9%, down 107 basis points. The adjusted operating margin declined to 13.2% from 14.1% a year earlier.



Operating expenses increased 13.2% year over year to $8.33 billion.



"Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events," commented Ted Decker, chair, president, and CEO.



Operating cash flow for the quarter totaled $4.33 billion, down from $5.50 billion a year earlier. As of May 4, the company held $1.369 billion in cash and equivalents.



At the end of the quarter, HD operated 2,350 retail stores and over 790 branches across the U.S., Canada, and Mexico.



Home Depot reaffirmed it forecast of total sales growth of 2.8% year-over-year, reaching $163.98 billion, below the consensus of $164.17 billion.



Comparable sales are expected to rise approximately 1%, with an adjusted operating margin of around 13.4%.



The company anticipates adjusted earnings per share will decline about 2% to $14.94, lower than the $14.99 consensus estimate.



Price Action: HD shares are trading higher by 0.95% at $383 at the last check Tuesday.



Also Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45404626/walmart-target-home-depot-ceos-tell-trump-prices-will-rise-shelves-will-be-empty-if-tariffs-persist" target="_blank" rel="noreferrer noopener">Walmart, Target, Home Depot CEOs Tell Trump Prices Will Rise — ‘Shelves Will Be Empty' If Tariffs Persist</a></li>
</ul>



Photo via Shutterstock

Earnings

Guidance

Movers

Home Depot Flags Tariff And Supply Chain Risks In Risk Statement But Does Not Revise Outlook

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock edged higher by as much as 3.5% to $354.15 early Tuesday morning after CEO Elon Musk, speaking at the Qatar Economic Forum, said he remains committed to leading the company for the next five years.



What Else: Investors welcomed the announcement, viewing it as a sign of stability during a period of uncertainty for the electric vehicle maker. Musk also claimed Tesla has &#8220;already turned around&#8221; following a <a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track">difficult first quarter</a> marked by falling revenue, lower deliveries and missed earnings estimates. 



Despite these challenges, Musk's renewed leadership pledge and optimism suggest confidence in Tesla&#8217;s upcoming product roadmap, including affordable models in 2025 and the <a href="https://www.benzinga.com/topic/cybercab">Cybercab</a> in 2026.



The market likely interpreted the comments as a vote of confidence in Tesla's long-term strategy amid a volatile macroeconomic landscape.



Read Also: <a href="https://www.benzinga.com/25/05/45513708/tesla-new-vehicle-registrations-surge-in-china-gary-black-says-it-should-provide-investors-some-relief">Tesla New Vehicle Registrations Surge In China, Gary Black Says It Should Provide Investors Some Relief</a>



<h2 class="wp-block-heading">How To Buy TSLA Stock</h2>



Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 



For example, in Tesla&#8217;s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.



According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, TSLA has a 52-week high of $488.54 and a 52-week low of $167.41.

Tesla Stock Rises After Musk Reaffirms Leadership And Business Rebound

D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>) shares are ripping higher in early trading Tuesday after the company announced the general availability of its <a href="https://www.benzinga.com/pressreleases/25/05/b45514131/d-wave-announces-general-availability-of-advantage2-quantum-computer-its-most-advanced-and-perform">most advanced quantum computer</a>.



What Happened: Quantum computing company D-Wave announced the availability of its commercial-grade Advantage2 system, built to address real-world use cases in optimization, materials simulation and AI.



The company said customers can now access the Advantage2 system through its D-Wave&#8217;s Leap real-time quantum cloud service. Currently available in more than 40 countries, the system offers sub-second response times and SOC 2 Type 2 compliance to meet enterprise needs and security requirements. Advantage2 is also available for hyperscalers to purchase for on-premises ownership. 



&#8220;Today marks a significant milestone not just for D-Wave, but for the quantum computing industry as a whole, as we bring to market our sixth-generation quantum computer, a system so powerful that it can solve hard problems outside the reach of one of the world&#8217;s largest exascale GPU-based classical supercomputers,&#8221; said Alan Baratz, CEO of D-Wave. 



&#8220;It&#8217;s an engineering marvel, with substantial technical advancements that highlight D-Wave&#8217;s progress in scaling quantum technology to meet industry demands for growing computational processing power while maintaining energy efficiency.&#8221;



D-Wave said its latest quantum processor offers several advantages versus the prior generation, including increased qubit connectivity, higher energy scale and greater coherence. The system also enables coherent quantum annealing at scale and hybrid solver integration.



Related Link: <a href="https://www.benzinga.com/etfs/sector-etfs/25/05/45503887/quantum-vs-ai-nvidias-next-big-bet-could-supercharge-these-2-etfs">Quantum Vs AI: Nvidia&#8217;s Next Big Bet Could Supercharge These 2 ETFs</a>



<h3 class="wp-block-heading">How To Buy QBTS Stock</h3>



By now you're likely curious about how to participate in the market for D-Wave Quantum &#8211; be it to purchase shares, or even attempt to bet against the company.



Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy &#8220;fractional shares,&#8221; which allows you to own portions of stock without buying an entire share.



In the case of D-Wave Quantum, which is trading at $13.15 as of publishing time, $100 would buy you 7.6 shares of stock.



If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to &#8220;go short&#8221; a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.



QBTS Price Action: <a href="http://benzinga.com/quote/qbts">D-Wave Quantum shares</a> are up nearly 975% over a one-year period. The quantum stock was up 19.5% at $15.73 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Photo: courtesy of D-Wave Quantum.

QBTS

D-Wave Quantum Stock Is Surging Tuesday: Here's Why

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

Macro Economic Events

Politics

Retail Sales

Economics

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

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

Market Summary

Futures

Pre-Market Outlook

ASPI

EGHT

EKSO

FAAS

LYRA

NVAX

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

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

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>

$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>

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

Bonds

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'

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

Econ #s

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?

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