Weekly Market Insights | Markets Cringe At Returned Tariff Talk

Stocks moved lower last week as fiscal fears and fresh tariff threats loomed over market sentiment.

The Standard & Poor’s 500 Index fell 2.61 percent closing at 5,802.82.  The Measure is still in positive territory for May with a month-to-date gain of 4.2%, but it is now down 1.3% for 2025, while the Nasdaq Composite Index dropped 2.47 percent closing at 18,737.21. The Dow Jones Industrial Average slid 2.47 percent closing at 41,603.07. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 1.14 percent.^1,2

Unexpected Tariff News

A relief rally last week had put the S&P 500 in the black for the year for the first time in months. The year-to-date gain was short-lived as worries about tariff impacts sent the index back into the red. President Donald Trump threatened to place a 50% tariff rate on goods from the European Union and said Apple (AAPL) might have to pay a tariff of at least 25% for iPhones manufactured abroad.

All of the S&P 500's sectors fell on a weekly basis. The energy sector had the largest percentage drop, sliding 4.4%, followed by a 3.5% decline in technology, a 3.3% drop in real estate and losses of 3.1% each in consumer discretionary and financials. The smallest decline was logged by consumer staples, which edged down 0.4%.

Phillips 66 (PSX) was among the energy sector's hardest-hit stocks, falling 10% as the oil refiner's shareholders voted for two Elliott Investment Management nominees to the company's board based on preliminary results. A Reuters report also said Phillips 66 will start laying off most employees at its Los Angeles facility in December; the company previously said it would begin shutting down the plant in October, with job cuts to follow two months later.

Shares of solar companies weighed on the technology sector as US House Republicans passed a tax bill that eliminates important clean energy credits, according to media reports. Among the decliners, shares of Enphase Energy (ENPH) fell 21% and First Solar (FSLR) lost 11%.

In real estate, decliners included shares of Weyerhaeuser (WY), which fell 5.6% as the company said it has agreed to purchase nearly 117,000 acres of timberlands in North Carolina and Virginia from Roanoke Timberlands for $375 million. Weyerhaeuser also unveiled plans this week to sell its Princeton, British Columbia, lumber mill to the Gorman Group for approximately 120 million Canadian dollars ($86.6 million) in cash.

US stock market will be closed on Monday for Memorial Day.

Economic data expected the rest of the week include April consumer spending and personal consumption expenditures, May consumer confidence and consumer sentiment, and the first revision to Q1 gross domestic product, among other reports.

This Week: Key Economic Data

Monday: Market Holiday

Tuesday: Durable Goods. New York Fed President John Williams and Minneapolis Fed President Neel Kashkari speak. Case-Shiller Home Price Index. Consumer Confidence.

Wednesday: Federal Open Market Committee (FOMC) Meeting Minutes. Neel Kashkari speaks.

Thursday: Gross Domestic Product (GDP). Jobless Claims (weekly). San Francisco Fed President Mary Daly and Chicago Fed President Austan Goolsbee speak. Fed Balance Sheet. Pending Home Sales.

Friday: Personal Consumption & Expenditures (PCE) Index. International Trade Balance in Goods. Atlanta Fed President Raphael Bostic and Austan Goolsbee speak. Retail and Wholesale Inventories. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; May 23, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Wednesday: NVIDIA Corporation (NVDA), Salesforce Inc. (CRM)

Thursday: Costco Wholesale Corporation (COST), Dell Technologies Inc. (DELL)

^{Source: Zacks, May 23, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

"You can’t destroy knowledge. You can stamp it under and burn it up and forbid it to be, but somewhere it will survive."

– Leigh Brackett

Help Get Your Federal Withholding Correct With This Tool From the IRS

The IRS has a handy tool called the IRS Tax Withholding Estimator to help taxpayers better understand their withholding. It’s essential to examine your federal withholding periodically to ensure you are comfortable with the amount of tax withheld. 

Checking your withholding status may be a good idea to consider if you have experienced a change that may affect your tax status, such as:

• Going through a marriage or divorce

• Having or adopting a child

• Purchasing a new home

• Working two or more jobs at the same time

• Only working part of the year

• Claiming credits such as the child tax credit

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁹

What is Sleep Hygiene?

We all want a better night’s sleep, and your sleep hygiene routine might impact the amount and quality of shut-eye you get. Sleep hygiene refers to your habits to get a good night’s sleep. The better your habits, the better your chances are of improving your sleep. 

Here are some good sleep hygiene tips:

• Be consistent with your sleeping and waking times, even on weekends!

• Make sure your bedroom is dark, quiet, and of a comfortable temperature

• Invest in blackout curtains or a white noise machine to drown out light and sound

• Avoid electronic devices, including phones and TV, at least an hour before bed

• If your appliances have a “night” mode, switch this on a few hours before bed to reduce blue light

• Make sure to get enough exercise during the day, which may help you fall asleep faster

Tip adapted from Centers for Disease Control and Prevention¹⁰

It has dozens of fine teeth, but you can hold it in your hand, and it will never bite you. What is it?

Last week’s riddle: What can go down a chimney when it is down but can’t go up through a chimney when it is up?
Answer: An umbrella.

View of Guatapé
Piedra del Peñol, Colombia

Footnotes and Sources

^{1. WSJ.com, May 23, 2025}

^{2. Investing.com, May 23, 2025}

^{3. CNBC.com, May 19, 2025}

^{4. CNBC.com, May 20, 2025}

^{5. CNBC.com, May 21, 2025}

^{6. CNBC.com, May 22, 2025}

^{7. WSJ.com, May 23, 2025}

^{8. MarketWatch.com, May 23, 2025}

^{9. IRS.gov, August 20, 2024}

^{10. CDC.gov, December 12, 2024}

^{11. Provided by MT News wires. Ycharts.com, May 26 - June1, 2025}