U.S. stock futures were fluctuating on Friday after a mixed close on Thursday. Futures of major benchmark indices were mixed in premarket.



The week began with the market shrugging off <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 of the U.S. government debt</a>, however, it slipped later in the week as investors started assessing the impact of the new tax bill proposed by the Donald Trump administration, known as the &#8220;One, Big, Beautiful Bill.&#8221;



While the tax bill is expected to <a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">add $3.8 trillion</a> to the U.S. debt as per Congressional Budget Office estimates, it was <a href="https://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficitshttps://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficits">passed by the U.S. House of Representatives</a> on Thursday by a 215-214 margin.



Meanwhile, the 10-year Treasury bond yielded 4.51% and the two-year bond was at 3.98%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool&#8217;</a>s projections show markets pricing a 94.7% 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>-0.07%</td></tr><tr><td>S&amp;P 500</td><td>-0.03%</td></tr><tr><td>Nasdaq 100</td><td>-0.04%</td></tr><tr><td>Russell 2000</td><td>0.13%</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, rose in premarket on Friday. The SPY was up 0.16% to $584.05, while the QQQ advanced 0.21% to $515.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Sectoral moves drove a mixed day for U.S. stocks Thursday, as the Nasdaq Composite rose over 50 points while most S&amp;P 500 sectors closed lower.



Utilities, healthcare, and energy stocks saw the biggest losses. Conversely, consumer discretionary and communication services bucked the trend, finishing higher.



Economic data showed U.S. initial jobless claims falling to 227,000, beating estimates, and both S&amp;P Global services and manufacturing PMIs climbing to 52.3 in May.



Meanwhile, Advance Auto Parts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) shares surged 57% after strong Q1 results, and Vigil Neuroscience Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIGL#NASDAQ">VIGL</a>) skyrocketed 241% on news of a Sanofi acquisition.



<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>0.28%</td><td>18,925.73</td></tr><tr><td>S&amp;P 500</td><td>-0.044%</td><td>5,842.01</td></tr><tr><td>Dow Jones</td><td>-0.0032%</td><td>41,859.09</td></tr><tr><td>Russell 2000</td><td>-0.049%</td><td>2,045.56</td></tr></tbody></table></figure>



Insights From Analysts:



Jurrien Timmer, the director of global macro at Fidelity Investments, highlighted in an X post that the long end of the Treasury market was being ignored after the S&amp;P 500 recovered most of its decline below its 52-week high.



&#8220;There's an old saying that &#8216;nothing good ever happens after midnight,&#8217; and we could borrow that phrase and say that nothing good happens above a 5% yield,&#8221; he said, highlighting concerns about higher yields.



He added that &#8220;It's my strong hunch that the next chapter in this market cycle will be driven by rates, as term premia return to their historical pre-QE levels.&#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">With the S&amp;P 500 recovering most of its decline, little noticed has been the long end of the Treasury market, which is once again nearing the danger zone of 4.5-5.0% (10-year) as the term premium reaches a new cycle high of 74 bps. There's an old saying that "nothing good ever… <a href="https://t.co/riaAUGJOrn">pic.twitter.com/riaAUGJOrn</a>&mdash; Jurrien Timmer (@TimmerFidelity) <a href="https://twitter.com/TimmerFidelity/status/1925617154612711785?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



&#8220;The budget discussion is fueling a lot of concern about deficits and debt levels rising over the long run,&#8221; said Kathy Jones, chief fixed income strategist at Schwab, who noted yields moving higher after the vote.



&#8220;The current proposal is expected to add anywhere from $3 trillion to $5 trillion to the accumulated debt over the next 10 years. The market appears to be voting against this bill and would like to see more fiscal restraint.&#8221;



The bill will now advance to the Senate, where it appears likely to face additional revisions.



&#8220;Congress has set a July target for a final bill to be signed into law, which could look very different than the current version. Consequently, we do not recommend taking actions based on the bill in its current form,&#8221; said Brian Therien of Edward Jones.



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 Friday:



<ul class="wp-block-list">
<li>Kansas City Fed President Jeff Schmid will speak at 9:35 a.m., new home sales data for April will be out by 10:00 a.m., and Federal Reserve Governor Lisa Cook will speak at noon ET.</li>



<li>On Sunday, Federal Reserve Chair Jerome Powell will deliver his commencement address at 2:40 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) rose 3.09% in premarket on Friday as analysts expect it to report quarterly earnings of $1.59 per share on revenue of $3.03 billion, before the opening bell.</li>



<li>Buckle Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKE#NYSE">BKE</a>) was up 1.45% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of 69 cents per share on revenue of $268.06 million.</li>



<li>Frontline PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRO#NYSE">FRO</a>) advanced 1.92% as analysts expect it to report quarterly earnings of 23 cents per share on revenue of $264.19 million, before the opening bell.</li>



<li>Autodesk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) rose 3.32% after it reported better-than-expected first-quarter financial results, issued strong guidance for the second quarter, and raised its FY26 guidance.</li>



<li>Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) jumped 7.96% after reporting stronger-than-expected third-quarter financial results and raising its full-year guidance.</li>



<li>BloomZ Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMZ#NASDAQ">BLMZ</a>) surged 43.88% and formed a strategic alliance with M-NEXT Holdings, owner of trading card retailer &#8220;Ryusei no Arashi.&#8221;</li>



<li>Aurinia Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUPH#NASDAQ">AUPH</a>) was 2.78% higher after it announced positive findings from a post-hoc analysis of its AURORA 1 Phase 3 study in lupus nephritis (LN) patients.</li>



<li>Hallador Energy Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HNRG#NASDAQ">HNRG</a>) dropped 10.25% as a major agreement, with a prominent global data center developer, was terminated on May 19, 2025.</li>



<li>Xerox Holdings Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XRX#NASDAQ">XRX</a>) slumped 8.79% after slashing its quarterly dividend by 75% to fund a $238 million synergy deal with Lexmark.</li>



<li>Sobr Safe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) zoomed 18.84% after the company reported a year-over-year increase in first-quarter EPS and sales results.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.49% to hover around $60.90 per barrel.



Gold Spot US Dollar rose 1.11% to hover around $3,331.29 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.57% at the 99.3890 level.



Asian markets were mixed on Friday as South Korea's Kospi and China&#8217;s CSI 300 indices declined, whereas India's S&amp;P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng indices rose. European markets were also mixed in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45582025/stock-market-is-underpricing-downside-risks-of-the-tariff-rates-warns-expert-tariff-policy-nuances-are-far-more-important-than-the-one-big-beautiful-bill">Stock Market Is Underpricing &#8216;Downside Risks Of The Tariff Rates,&#8217; Warns Expert: Tariff Policy Nuances Are &#8216;Far More Important&#8217; Than The &#8216;One Big, Beautiful Bill&#8217; </a></li>
</ul>



Photo courtesy: godongphoto / Shutterstock.com

Equities

Market Summary

News

Futures

Treasuries

Economics

Pre-Market Outlook

Markets

ADSK

AUPH

BLMZ

HNRG

INTU

SOBR

VIGL

US Stocks Likely To Open On A Mixed Note: 'Nothing Good Happens Above A 5% Yield,' Says Expert

U.S. President&nbsp;Donald Trump&nbsp;has demanded that iPhones sold in the U.S. be manufactured domestically, threatening a 25% tariff on&nbsp;Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) otherwise.



What Happened: On Friday, Trump took to his Truth Social to reiterate his expectations to Apple&#8217;s CEO, Tim Cook, that iPhones sold in the U.S. should be &#8220;manufactured and built&#8221; domestically and not in India. 



He warned of a substantial tariff of &#8220;at least 25%&#8221; if this is not the case.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="609" height="257" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302.png" alt="" class="wp-image-925868" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302.png 609w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302-300x127.png 300w" sizes="(max-width: 609px) 100vw, 609px" /></figure>



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/05/45581129/trump-gala-dinner-saw-president-wine-and-dine-top-memecoin-holders-as-protestors-flashed-don-the-con-signs-exclusive" target="_blank" rel="noreferrer noopener">Trump Gala Dinner Saw President Wine And Dine Top Memecoin Holders As Protestors Flashed &#8216;Don The Con&#8217; Signs — Exclusive &#8211; Benzinga</a>



Why It Matters: This came after Apple reportedly plans to ramp up its presence in India by expanding its supply chain operations through its leading manufacturing partner, Foxconn, officially known as Hon Hai Precision Industry Co. Ltd. (OTCPK: HNHAF). Foxconn plans to <a href="https://www.benzinga.com/news/global/25/05/45582261/despite-trumps-warning-to-tim-cook-apple-moves-ahead-with-1-5-billion-india-expansion-via-foxconn-to-boost-iphone-production-report">invest $1.5 billion</a> in a new display module plant near Chennai, India, assembling screen components for iPhones.



Despite Trump&#8217;s criticism, India, earlier, said it remains committed to its growing partnership with Apple. The Tim Cook-led company has reassured the Indian government of its commitment to continue using India as a major manufacturing base. This assurance comes despite Trump's recent remarks, with government sources emphasizing that there is "<a href="https://www.benzinga.com/markets/25/05/45462006/no-change-in-apples-production-plans-says-india-despite-trumps-little-problem-with-ceo-tim-cook-report">no change</a>" in Apple's investment plans in India.



Price Action: Apple shares dipped over 3% during Friday&#8217;s premarket session, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Benzinga Edge Stock Rankings assigned Apple a growth score of 33.12%. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound" target="_blank" rel="noreferrer noopener">Click here to compare it with other major players</a>. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound" target="_blank" rel="noreferrer noopener"></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 decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23075059/Screenshot-2025-05-23-at-9.44.36%E2%80%AFAM-1-1.png" alt="" class="wp-image-925885"/></a></figure>



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-sh" target="_blank" rel="noreferrer noopener">Trump&#8217;s &#8216;Big, Beautiful&#8217; $3.8 Trillion Bill Squeaks Through House: Expert Says It Will &#8216;Boost The Economy In The Short Term,&#8217; But Worsen Deficits</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.

Tech

AAPL

HNHAF

Trump Threatens Tim Cook To Manufacture iPhones In US Or Face 'At Least 25%' Tariffs: AAPL Stock Slides Over 3% In Premarket

President&nbsp;Donald Trump&#8217;s&nbsp;&#8220;big beautiful bill&#8221; has been approved by the House, marking a significant step towards its potential impact on Americans&#8217; finances.



What Happened: The bill, passed on Thursday, is a comprehensive piece of legislation that extends the President&#8217;s 2017 tax cuts and introduces substantial alterations to the tax system, <a href="https://www.businessinsider.com/big-beautiful-bill-affects-taxes-student-loans-maga-accounts-2025">reported</a> Business Insider. The bill also contains measures related to Medicaid and the Supplemental Nutrition Assistance Program (SNAP).



The bill covers a range of tax measures, such as eliminating taxes on tips and overtime pay, introducing a $4,000 tax deduction for seniors earning under $75,000 a year, and raising the child tax credit from $2,000 to $2,500 through 2028. It also makes Trump's 2017 tax cuts permanent and increases the state and local tax deduction limit from $10,000 to $40,000.



The bill proposes ending income-driven student loan repayment plans, including Biden's SAVE plan, and introducing two new options: the Repayment Assistance Plan and a standard repayment plan.



Low-income Americans on Medicaid and SNAP are set to see major changes, including a monthly 80-hour work requirement for certain childless Medicaid recipients by 2026 and expanded SNAP work requirements for adults aged 55 to 64.



The bill proposes &#8220;Trump accounts,&#8221; offering $1,000 government deposits for babies born between Dec. 31, 2024, and Jan. 1, 2029, along with tax incentives and reduced long-term capital gains tax rates for parents.



SEE ALSO: <a href="https://benzinga.com/markets/cryptocurrency/25/05/45562596/bitcoin-breaks-111000-as-experts-hail-regime-shift" target="_blank" rel="noreferrer noopener">Bitcoin Breaks $111,000 As Experts Hail &#8216;Regime Shift&#8217; </a>



Why It Matters: The bill, which is part of Trump&#8217;s tax-and-spending package, has been&nbsp;narrowly <a href="https://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficits">passed </a>by the House&nbsp;with a 215-214 margin. The bill may boost the economy short term, but experts warn it could raise fiscal deficits due to tax cuts and increased defense spending.



However, the bill has also been criticized for potentially <a href="https://www.benzinga.com/markets/25/05/45559059/trumps-big-beautiful-bill-could-be-3-1-trillion-jackpot-for-affluent-americans-like-elon-musk-and-jeff-bezos-report">exacerbating </a>wealth inequality. A report by Oxfam America suggests that the proposed tax cuts would disproportionately benefit the affluent, further stacking the odds against ordinary citizens. Meanwhile, an economics professor analyzed that the top 10% of households would receive approximately $3.1 trillion in tax cuts over a decade.



The 10-year Treasury yield dipped to 4.53% on Thursday, but remains elevated, reflecting investors&#8217; increased demand for compensation due to fiscal risk.



Stock markets showed mixed reactions, with the S&amp;P 500, tracked by SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), edging 0.039% higher to close at $583.09 on Thursday, while Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) climbed 0.19% to close at $514.



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/03/44450232/white-house-says-gold-reserves-may-be-used-to-purchase-bitcoin" target="_blank" rel="noreferrer noopener">White House Says Gold Reserves May Be Used to Purchase Bitcoin &#8211; Benzinga</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.

Trump's 'Big Beautiful Bill' Passes House: Taxes, Student Loans, Medicaid And What Else Is Changing For American Families

Greg Abel, <a href="https://www.benzinga.com/news/management/25/05/45429435/warren-buffett-explains-why-he-couldnt-deny-greg-abel-the-top-job-at-berkshire-hathaway-any-longer-hes-a-natural">set to succeed Warren Buffett </a>as CEO of Berkshire Hathaway, started his career pushing for geothermal energy in California. But as he prepares to take over from one of the world's most influential investors, Abel now oversees a huge fossil fuel empire and defends coal power, even as the climate crisis worsens.



What Happened: <a href="https://www.benzinga.com/25/05/45237968/5-facts-you-might-not-know-about-warren-buffett-successor-greg-abel">Abel started </a>at CalEnergy in 1992, according <a href="https://www.latimes.com/environment/newsletter/2025-05-08/warren-buffetts-successor-got-started-selling-clean-energy-now-he-defends-coal">to</a> the Los Angeles Times. Working with geothermal plants at the Salton Sea and China Lake that produced clean electricity, he rose through the ranks, ultimately becoming president.



In 1999, CalEnergy purchased MidAmerican Energy, and soon, Buffett's Berkshire Hathaway became a major investor. This deal marked Buffett's entry into the energy sector and brought Abel into his inner coterie.



Despite his start in clean energy, at the company's annual meeting in Omaha, Abel responded to a question about Berkshire's coal pollution, which is ranked worst among major U.S. firms for nitrogen oxide emissions according to a Reuters investigation, by stating that utilities like MidAmerican were molded by state policies.



"We had to recognize we implement public policy across these states," he said. Abel also said that coal plants were still vital to grid stability, particularly in Iowa, where five coal units are still operational.



See Also: <a href="https://www.benzinga.com/hedge-funds/25/05/45499198/buffett-ackman-icahn-take-a-beating-as-billionaires-weather-q1-chaos">Buffett, Ackman, Icahn Take A Beating As Billionaires Weather Q1 Chaos</a>



Why It Matters: Abel's comments, alongside Berkshire's lobbying record, indicate that the company is reluctant to hasten a transition to clean energy.



Grassroots environmental organization Sierra Club criticized Abel's response, saying: "Berkshire has teams of aggressive lobbyists and lawyers who fight against any regulation on the state and federal levels that would incentivize transitions to clean energy."



As per data&nbsp;compiled&nbsp;by OpenSecrets.org, Berkshire spent $65 million lobbying the federal government in the last ten years. It has called for the loosening of air pollution regulations and filed lawsuits against federal and state environmental policies.



The company has also delayed closures of its coal plants in Utah and Wyoming, and is asking the Trump administration to block pollution-control mandates put in place to protect air quality in national parks.



While California has almost eliminated coal from its power mix, Berkshire's PacifiCorp still operates six coal plants across the Western U.S. A PacifiCorp spokesperson told the LA Times that coal retirement timelines are not firm commitments, and said they are subject to change.



Meanwhile, according to Bloomberg, <a href="https://www.bloomberg.com/opinion/articles/2025-05-05/buffett-s-successor-has-an-oxy-sized-hole-to-dig-out-of">Berkshire's investment in Occidental Petroleum</a> stock has not turned out to be a successful bet, with analysts estimating that the company suffered around $4.5 billion in losses.



As <a href="https://www.benzinga.com/markets/25/05/45183000/warren-buffetts-right-hand-man-greg-abel-is-quietly-taking-over-day-to-day-leadership-at-berkshire-hathaway-gotten-much-more-involved-in-capital-allocation-decisions">Abel steps into Buffett's role</a>, the contrast between his earlier involvement in clean energy and current coal-friendly stance raises questions about the future path of one of America's most impactful companies.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45568741/warren-buffett-convinced-me-to-focus-more-on-stocks-and-less-on-crypto-etoro-ceo-says">Warren Buffett Convinced Me To Focus More On Stocks And Less On Crypto, eToro CEO says</a></li>
</ul>



Photo courtesy: mark reinstein / Shutterstock.com

Warren Buffett's Berkshire Hathaway Runs The Dirtiest Coal Plants In America: His Successor Greg Abel Is Defending Them Despite Starting Out In Clean Energy

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Thursday.



U.S. stocks settled mixed on Thursday, with the Nasdaq Composite gaining more than 50 points during the session.



President Donald Trump&#8217;s &#8220;one big beautiful tax bill&#8221; narrowly <a href="https://www.benzinga.com/25/05/45580298/trumps-big-beautiful-bill-strips-key-retirement-benefits-from-federal-workers-in-razor-thin-house-vote">passed the House</a> in a 215-214 vote and now moves to the Senate. According to the Congressional Budget Office, the proposed legislation is projected to add approximately $3 trillion to the national deficit over the next decade.



On the economic data front, U.S. initial jobless claims fell by 2,000 from the previous week to 227,000 in the week ending May 17, compared to market estimates of 230,000. The S&amp;P Global services PMI climbed to 52.3 in May compared to 50.8 in the previous month, while the manufacturing PMI rose to 52.3 in May from 50.2 in April.



Advance Auto Parts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) shares jumped 57% on Thursday following better-than-expected first-quarter financial results. Vigil Neuroscience, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIGL#NASDAQ">VIGL</a>) shares climbed 241% after announcing Sanofi will acquire the company for approximately $600 million.



Most sectors on the S&amp;P 500 closed on a negative note, with utilities, health care, and energy stocks recording the biggest losses on Thursday. However, consumer discretionary and communication services stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by over 1 point to 41,859.09 on Thursday. The S&amp;P 500 slipped 0.04% to 5,842.01, while the Nasdaq Composite gained 0.28% at 18,925.73 during Thursday's session.



Investors are awaiting earnings results from Booz Allen Hamilton Holding Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>), The Buckle, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKE#NYSE">BKE</a>), and Frontline plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRO#NYSE">FRO</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 66.2, the index remained in the &#8220;Greed&#8221; zone on Thursday, versus a prior reading of 65.7.



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: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45562909/top-2-financial-stocks-that-may-keep-you-up-at-night-in-may">Top 2 Financial Stocks That May Keep You Up At Night In May</a> </li>
</ul>



Photo courtesy: Shutterstock

Earnings

Trading Ideas

Nasdaq Gains Over 50 Points Following Positive Economic Reports: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

Amid protests and ethical concerns, President Donald Trump hosted a private dinner for the top buyers of his Official Trump (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">TRUMP</a>) memecoin on Thursday.



What happened: Trump landed at his private golf club near Washington, D.C., via helicopter to spend the evening with his VIP guests, including cryptocurrency millionaire and Tron (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/trx/usd">TRX</a>) founder Justin Sun, <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45367052/trump-memecoin-exclusive-dinner-guest-list-revealed-with-justin-sun-shining-at-the-top-rep">the meme coin&#8217;s top holder</a>.



In a series of visuals shared with Benzinga by another invitee, Morten Christensen, founder of AirdropAlert.com, Trump can be seen addressing his guests, with an elegant indoor dining setup, complete with wine glasses, cutlery, and a menu card, in the background.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="768" height="1024" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-768x1024.jpg" alt="" class="wp-image-925369" style="width:516px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-768x1024.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-225x300.jpg 225w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-1152x1536.jpg 1152w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e.jpg 1200w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



The pictures also showed protesters outside the arena holding placards with phrases such as &#8220;Democracy Not Kleptocracy&#8221; and &#8220;Don The Con."



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1024x768.jpg" alt="" class="wp-image-925373" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1024x768.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-300x225.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-768x576.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1536x1152.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36.jpg 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



While the top 220 holders dined with Trump at the club, the top 25 holders have been promised access to a VIP reception and White House tour, as well as limited-edition commemorative non-fungible tokens.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1024x768.jpg" alt="" class="wp-image-925378" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1024x768.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-300x225.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-768x576.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1536x1152.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433.jpg 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



Sun said on X that he was awarded a Trump Golden Tourbillon watch by the POTUS.



<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">I was awarded a Trump Golden Tourbillon watch by Trump! <a href="https://t.co/CCYGQ6FMPA">pic.twitter.com/CCYGQ6FMPA</a>&mdash; H.E. Justin Sun &#x1f34c; (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1925780215764046285?ref_src=twsrc%5Etfw">May 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also:<a href="https://www.benzinga.com/25/04/44621245/gold-backed-cryptos-match-yellow-metals-highs-following-trumps-liberation-day-shock"> </a><a href="https://www.benzinga.com/25/05/45556899/from-amazon-to-warren-buffetts-berkshire-hathawaybitcoin-is-now-bigger-than-these-wall-street-titans">From Warren Buffett&#8217;s Berkshire Hathaway To Jeff Bezos&#8217; Amazon — Bitcoin Is Now Outshining These Wall Street Titans</a>



Why It Matters: The controversy surrounding the dinner has been escalating since it was announced last month.&nbsp; <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/45027557/trumps-memecoin-dinner-event-sparks-impeachment-call-from-democratic-senator-says-potus-is-selling-access-to-those-who-enrich-him">Democrats</a> and even <a href="https://www.benzinga.com/markets/25/05/45563302/pro-trump-crypto-enthusiasts-slam-trumps-memecoin-dinner-as-distasteful-and-an-unnecessary-distraction-hes-becoming-a-salesman-in-chief">some pro-Trump crypto enthusiasts</a> have voiced concerns about potential conflicts of interest and the possibility of shadowy buyers gaining access to Trump through such events.&nbsp;



Trump has <a href="https://in.benzinga.com/25/05/45187462/trump-denies-personal-profit-from-memecoin-venture-i-havent-even-looked">refuted claims</a> that he is financially benefiting from the venture.



Christensen <a href="https://www.benzinga.com/25/05/45429393/crypto-enthusiasts-secure-spot-at-trumps-meme-coin-dinner-for-just-1200-report">secured a spot at the exclusive dinner</a> by paying just $1,200. His strategy involved buying the Trump memecoin and shorting the exact same amount, resulting in a market-neutral position. This essentially meant that they just paid trading fees.



Interestingly, Christensen told Benzinga that he did not favor presidents or heads of state getting linked to speculative investments.



"If promoting a stock you own is a legal issue, the same logic should apply to crypto. There's too much potential for conflict of interest," he said.



Price Action:&nbsp; At the time of writing, TRUMP was exchanging hands at $14.25, down 1.16% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>. 



Feature Photo Courtesy: Morten Christensen



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45557864/jamie-dimon-is-no-fan-of-bitcoin-but-trumps-crypto-czar-made-an-attempt-to-change-the-jpmorgan-ceos-mind-using-this-narrative">Jamie Dimon Is No Fan Of Bitcoin, But Trump&#8217;s Crypto Czar Made An Attempt To Change the JPMorgan CEO&#8217;s Mind Using This Narrative</a></li>
</ul>

Cryptocurrency

Politics

Exclusives

$TRUMP

$TRX

Trump Gala Dinner Saw President Wine And Dine Top Memecoin Holders As Protestors Flashed 'Don The Con' Signs — Exclusive

Leading cryptocurrencies surged higher Thursday, even as stocks remained sluggish due to President Donald Trump&#8217;s tax bill-induced debt fears.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 9:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+1.30%</td><td>$111,396.80</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>+3.81%</td><td>$2,686.39</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>+2.67%</td><td>$0.2474</td></tr></tbody></table></figure>



What Happened: Bitcoin nearly reached $112,000 during the day, as part of a record-breaking rally that has put the top cryptocurrency into a tailspin.



Ethereum, the second-largest cryptocurrency, also went up roughly 4% during the day, raising its market dominance to 9.3%.



Bitcoin was up over 18% in May, while Ethereum's month-to-date gains shot past 47% as of this writing.&nbsp;



Over $300 million was liquidated from the cryptocurrency market in the last 24 hours, with shorts again bearing the brunt.



Bitcoin&#8217;s Open Interest was largely unchanged in the last 24 hours, while Ethereum witnessed a 9% jump in funds locked in derivatives.&nbsp;



Interestingly, the majority of Binance BTC traders were still short on the leading cryptocurrency.



According to the Crypto Fear and Greed Index, market sentiment has shifted dramatically from &#8220;Neutral&#8221; to &#8220;Greed&#8221; in a month's time.



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 8:30 p.m. ET)</td></tr><tr><td>Worldcoin (WLD)</td><td>+25.37%</td><td>$1.54</td></tr><tr><td>Hyperliquid (HYPE)</td><td>+17.37%</td><td>$33.94</td></tr><tr><td>Zcash (ZEC)</td><td>+16.64%</td><td>$50.20</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization topped $3.50 trillion, following an increase of 1.67% in the last 24 hours.



Stocks ended nearly flat on Thursday. The Dow Jones Industrial Average lost 1.35 points to end at 41,859.09. The S&amp;P 500 dipped 0.04% to close at 5,842.01, while the tech-focused Nasdaq Composite closed 0.28% higher at 18,925.73.



Investors responded to the House passing the Trump <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">tax-cut bill</a>, raising concerns about debt increases and pushing the 30-year Treasury yield to levels not seen since October 2023.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Market analysis platform Barchart projected Bitcoin's next moves, anticipating a "challenge" around $113,500.



"This 8-year trendline says it will face a challenge at about $113,500. Since late 2017, it&#8217;s been a tap-and-roll over. Will this time be different?" Barchart speculated.



<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">How high can Bitcoin <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> go? This 8-year trendline says it will face a challenge at about $113,500. Since late 2017, it&#39;s been a tap-and-roll over. Will this time be different? <a href="https://t.co/kVCRmLdSF2">pic.twitter.com/kVCRmLdSF2</a>&mdash; Barchart (@Barchart) <a href="https://twitter.com/Barchart/status/1925711549278097422?ref_src=twsrc%5Etfw">May 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency analyst and trader Ali Martinez noticed Ethereum's "solid" support at $2,370, with no "significant" resistance walls ahead!



<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"><a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> has built a solid support floor at $2,370, with no significant resistance walls ahead! <a href="https://t.co/E67jeybl6e">pic.twitter.com/E67jeybl6e</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1925661215524585506?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Antonio Gravante On Shutterstock.com



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45571765/kraken-to-launch-247-tokenized-stock-trading-for-global-users-via-solana">Kraken To Launch 24/7 Tokenized Stock Trading For Global Users Via Solana</a></li>
</ul>

Movers

$BTC

$DOGE

$ETH

Bitcoin Flirts With $112,000 — Ethereum, Dogecoin Spike Even As Stocks Flat On Debt Worries: Analytics Platform Sees Challenge For BTC At This Level

Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) posted a <a href="https://benzinga.com/news/earnings/25/05/45575402/intuit-q3-earnings-revenue-beat-eps-beat-raised-fy-guidance-company-seeing-exceptional-momentum-across-platforms">strong third-quarter</a> performance fueled by explosive growth in its TurboTax Live business. 



What Happened: During the earnings call on Thursday, the company&#8217;s CEO, Sasan Goodarzi, called it a &#8220;breakthrough adoption year&#8221; for its tax-prep product, TurboTax Live, highlighting the significant traction that the product has gained across consumer and business segments during the year.



The company reported a 47% year-over-year increase in TurboTax Live revenue and a 24% rise in customers using its AI-enabled service, helping push its overall Consumer Group revenue, which the product is a part of, to $4 billion.



&#8220;We saw adoption within our base,&#8221; Goodarzi said during the call, referring to Intuit&#8217;s nearly 100 million customers and users worldwide.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45579297/peter-schiff-says-a-president-shouldnt-sell-white-house-tours-and-pocket-the-proceeds-as-trump-prepares-to-have-dinner-with-memecoin-holders">Peter Schiff Says A President Shouldn&#8217;t &#8216;Sell White House Tours&#8217; And Pocket The Proceeds As Trump Prepares To Have Dinner With Memecoin Holders</a>



Goodarzi emphasized that AI played a critical role in simplifying the user experience, saying that the company reduced the average return preparation time by 12% and enabled over half of its customers to finish their annual tax filings in under an hour.



Despite the strong traction, Intuit sees room for improvement. Gudari notes areas where friction still exists, particularly for users migrating from traditional assisted tax providers. &#8220;There's still so much that we can do to make the end-to-end experience seamless,&#8221; he says.



Why It Matters: TurboTax Live, which blends AI with human experts, brings significant disruption to the traditionally human-led tax preparation market, which has long been dominated by the likes of H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>), which has already been working with Microsoft Corp.&#8217;s Azure OpenAI to <a href="https://www.benzinga.com/news/23/12/36245483/ai-can-help-do-your-taxes-how-h-r-block-utilizes-microsofts-azure-openai-for-customers">streamline tax preparation</a> process for nearly two years.



Early this week, Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) analyst Kash Rangan called the <a href="https://www.benzinga.com/25/05/45497740/intuit-q3-preview-revenue-beat-likely-benefits-from-being-a-price-disrupter-says-bullish-analyst">tax-heavy third quarter</a> a &#8220;validation opportunity&#8221; for the company. He also said that Intuit is seeing &#8220;product market fit&#8221; in the assisted tax filing segment, while calling it a &#8220;price disrupter.&#8221;



The company released its <a href="https://benzinga.com/news/earnings/25/05/45575402/intuit-q3-earnings-revenue-beat-eps-beat-raised-fy-guidance-company-seeing-exceptional-momentum-across-platforms">third quarter results</a> on Thursday, reporting $7.75 billion in revenue, beating consensus estimates of $7.56 billion. It posted a profit of $11.65 per share, which came in ahead of estimates at $10.91.



Price Action: The stock was up 0.92% on Thursday, trading at $666.07 per share, and is up 8.03% after hours following its robust third quarter performance.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="135" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1024x135.png" alt="" class="wp-image-925266" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1024x135.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-300x39.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-768x101.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1536x202.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM.png 1614w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



According to Benzinga&#8217;s Edge Stock Rankings, the stock has a favorable price trend in the short, medium, and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here</a> for more insights and to see how it compares with peers and competitors such as H&amp;R Block.



Photo Courtesy: Tada Images on Shutterstock.com



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<li><a href="https://www.benzinga.com/25/05/45579414/supreme-court-says-trump-cant-fire-jerome-powellthe-fed-a-uniquely-structured-quasi-private-entity">Trump May Not Be Able To Fire Jerome Powell, Supreme Court Signals: Fed A &#8216;Uniquely Structured, Quasi-Private Entity&#8217;</a></li>
</ul>

Intuit CEO Calls It A 'Breakthrough Adoption Year' As TurboTax Live Revenue Jumps—Stock Pops 8% After Hours

China&#8217;s Vice Foreign Minister Ma Zhaoxu held a telephone conversation with U.S. Deputy Secretary of State Christopher Landau on Friday, with both sides agreeing to maintain ongoing communication, according to China&#8217;s Ministry of Foreign Affairs statement released Friday.



What Happened: The diplomatic engagement comes as a 90-day U.S.-China trade truce nears its deadline, with former U.S. Ambassador to Russia, Michael McFaul, calling the lack of direct communication between President Donald Trump and Chinese President Xi Jinping &#8220;horrible.&#8221;



The leaders have not spoken directly since Trump&#8217;s Jan. 17 pre-inauguration call, despite Trump&#8217;s expressed <a href="https://www.benzinga.com/25/05/45512353/urgent-trump-xi-talks-needed-as-trade-truce-deadline-looms-warns-ex-us-diplomat-slamming-the-horrible-lack-of-contact">willingness to visit China for talks</a>.



Treasury Secretary Scott Bessent recently clarified that the U.S. will &#8220;continue trading with China&#8221; while reshoring critical supply chains, signaling potential flexibility in trade relations that could impact major <a href="https://www.benzinga.com/25/05/45512353/urgent-trump-xi-talks-needed-as-trade-truce-deadline-looms-warns-ex-us-diplomat-slamming-the-horrible-lack-of-contact">U.S. companies with Chinese exposure</a>.



See Also: <a href="https://www.benzinga.com/government/regulations/25/05/45574763/goldman-sachs-defense-stock-golden-dome">Goldman Sachs Taps This Defense Stock As Prime Beneficiary Of Trump&#8217;s $175B Golden Dome</a>



Why It Matters: The dialogue occurs against <a href="https://www.benzinga.com/25/05/45534527/china-warns-of-legal-retaliation-against-us-chip-sanctions-threatens-lawsuits-for-aiding-discriminatory-tech-crackdown">escalating tech tensions</a>. China threatened legal action against entities supporting U.S. semiconductor restrictions, following Washington&#8217;s guidance warning companies against using Huawei Technologies&#8216; Ascend AI chips. 



NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang criticized U.S. chip export controls as &#8220;exactly wrong for America,&#8221; revealing his company <a href="https://www.benzinga.com/25/05/45513246/nvidia-ceo-jensen-huang-says-chinese-ai-researchers-are-world-class-and-us-companies-are-hiring-a-whole-bunch-of-them">wrote off $5.5 billion in inventory</a> due to restrictions.



Trade complexities deepened with China&#8217;s criticism of the recent U.S.-UK trade pact, which Beijing called detrimental to third-party interests. Chinese researcher Zhang Yansheng described such agreements as &#8220;poison pill clauses&#8221; worse than tariffs, as Washington attempts to <a href="https://www.benzinga.com/markets/25/05/45400750/china-slams-uk-us-trade-pact-finds-it-against-its-interests-this-type-of-poison-pill-clause-is-actually-worse-than-the-tariffs">isolate China from supply chains</a>.



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</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

Global

NVDA

As Trump-Xi Jinping Silence Drags On, China And US Reopen Diplomatic Lines Amid Looming Trade Truce Deadline And Tech Tensions

Goldman Sachs believes L3Harris Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NASDAQ">LHX</a>) could be among the biggest corporate winners of the Trump administration&#8217;s <a href="https://www.benzinga.com/25/05/45548110/trumps-golden-dome-launches-new-era-for-defense-stocks-like-rtx-lockheed-martin-l3harris">$175 billion &#8220;Golden Dome&#8221; initiative</a>. 



What Happened: Goldman Sachs analyst Noah Poponak reiterated a Buy rating on L3Harris in a note Thursday following management meetings, highlighting the firm's positioning in key elements of the so-called &#8220;Golden Dome.&#8221;



On May 20, President Donald Trump, Secretary of Defense Pete Hegseth, and top military leaders pitched the Golden Dome as a multi-layered national missile defense system that can counter hypersonic and ballistic missiles.



The program, they say, is expected to be completed within three years, though experts note the complexity could extend that timeline.



Beyond the missile defense space, L3Harris has continued to report strength in high-margin communications and signal processing technologies.



Management emphasized global demand for battlefield integration systems, which are increasingly expected to feature artificial intelligence and data analytics, potentially in partnership with firms like Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>).



&#8220;LHX continues to see opportunity for margin expansion and free cash flow growth,&#8221; said Poponak. &#8220;It also remains focused on cost and productivity improvement programs.&#8221;



L3Harris believes the dome initiative could bring "billions of dollars in incremental revenue." The company has a High-Altitude Ballistic Tracking and Surveillance System (HBTSS).



Observers also see L3Harris&#8217; Aerojet Rocketdyne unit, acquired in 2023, as a technological leader in missile propulsion and guidance. Company management says it can benefit from missile-focused components of the initiative.



See Also: <a href="https://www.benzinga.com/general/space/25/05/45532125/l3harris-stock-moves-higher-after-being-named-in-golden-dome-missile-defense-system">L3Harris Stock Moves Higher After Being Named In &#8216;Golden Dome&#8217; Missile Defense System</a>



Why It Matters: In the GOP tax bill that passed the House on Thursday, the Treasury is increasing the deficit by about $144 billion for Armed Services and $67 billion for Homeland Security, <a href="https://www.benzinga.com/government/regulations/25/05/45569891/big-tax-cuts-big-deficits-wall-street-winners-and-losers-emerge">reflecting key spending priorities.</a>



Golden Dome&#8217;s early funding allocation is pegged at $25 billion. At least $24.7 billion in proposed spending would go toward air and missile defense enhancements.



Key line items include:



<ul class="wp-block-list">
<li>$7.2 billion for development of space-based military sensors</li>



<li>$5.6 billion for space-based and boost-phase missile interceptors</li>



<li>$2.2 billion for hypersonic defense system acceleration</li>



<li>$2 billion for military satellite systems targeting airborne threat</li>
</ul>



What Trump and House Republicans dub the &#8220;big, beautiful bill&#8221; now heads to the Senate.



Shares of L3Harris climbed 3% to $239 on Thursday, outperforming peers like Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), up 0.5%, and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), up 0.2%. Meanwhile, RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) slipped 0.3%. 



Goldman Sachs maintained a $283 price target for LHX shares, suggesting an 18% upside over the next 12 months.



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45541866/xi-jinpings-china-wants-trump-to-immediately-drop-the-golden-dome-project-over-strong-offensive-implications-security-of-all-countries-should-not-be-compromised">Xi Jinping&#8217;s China Wants Trump To Immediately Drop The Golden Dome Project Over &#8216;Strong Offensive Implications:&#8217; &#8216;&#8230;Security Of All Countries Should Not Be Compromised&#8217; </a></li>
</ul>



Image: Shutterstock

Government

Large Cap

Regulations

PLTR

Goldman Sachs Taps This Defense Stock As Prime Beneficiary Of Trump's $175B Golden Dome

Intuit Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) reported financial results for the third quarter of fiscal 2025 after the market close on Thursday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/05/b45573956/intuit-reports-strong-third-quarter-results-and-raises-full-year-guidance">of the report</a>.



Q3 Earnings: Intuit reported third-quarter revenue of $7.75 billion, beating analyst <a href="http://benzinga.com/quote/INTU/earnings">estimates</a> of $7.56 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The QuickBooks and TurboTax parent company reported third-quarter adjusted earnings of $11.65 per share, beating analyst estimates of $10.91 per share.



Total revenue was up 15% year-over-year. Here&#8217;s a breakdown of revenue by segment:



<ul class="wp-block-list">
<li>Consumer Group revenue: $4 billion, up 11%</li>
</ul>



<ul class="wp-block-list">
<li>Global Business Solutions revenue: $2.8 billion, up 19%</li>
</ul>



<ul class="wp-block-list">
<li>Credit Karma revenue: $579 million, up 31%</li>
</ul>



<ul class="wp-block-list">
<li>ProTax Group revenue: $278 million, up 9%</li>
</ul>



<ul class="wp-block-list">
<li>Online Ecosystem revenue: up 20%</li>
</ul>



Intuit repurchased $754 million of its stock in the quarter and had $2.8 billion remaining on its buyback at quarter&#8217;s end. The company said its board approved a quarterly dividend of $1.04 per share, payable on July 18. 



Intuit ended the quarter with $6.2 billion in total cash and investments and $6.4 billion of debt.



&#8220;We have exceptional momentum with outstanding performance across our platform. We&#8217;re redefining what&#8217;s possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses,&#8221;&nbsp;said&nbsp;Sasan Goodarzi, CEO of Intuit.



Guidance:&nbsp;Intuit expects fourth-quarter revenue of $3.72 billion to $3.76 billion versus estimates of $3.76 billion. The company sees third-quarter adjusted earnings in the range of $2.63 to $2.68 per share versus estimates of $2.59 per share.&nbsp;



Intuit also raised its full-year guidance. The company expects full-year 2025 revenue of $18.72 billion to $18.76 billion, up from prior guidance of $18.16 billion and $18.35 billion. The company anticipates full-year earnings of $20.07 to $20.12 per share, up from prior guidance of $19.16 to $19.36, Analysts are currently looking for full-year revenue of $18.35 billion and full-year adjusted earnings of $19.34 per share, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Intuit&#8217;s management team will further discuss the quarter on a call with investors and analysts at 4:30 p.m. ET. 



INTU Price Action: <a href="https://www.benzinga.com/quote/INTU" target="_blank" rel="noreferrer noopener">Intuit shares</a> were up 8.25% in after-hours, trading at $721 at the time of publication on Thursday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/top-stories/25/05/45570965/stocks-rebound-as-treasury-yields-fall-bitcoin-tops-111000-whats-driving-markets-thursday">Stocks Rebound As Treasury Yields Fall, Bitcoin Tops $111,000: What&#8217;s Driving Markets Thursday?</a></li>
</ul>



Photo: Shutterstock.

Guidance

After-Hours Center

Intuit Q3 Earnings: Revenue Beat, EPS Beat, Raised FY Guidance, Company Seeing 'Exceptional' Momentum Across Platforms

Google (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) has been underperforming the other Big Tech stocks lately. This is likely due to falling margins from the AI overview at the top of Google Search pages and Apple&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) inclusion of AI search on its platforms.



This suggests that Google is going to stay weak for the foreseeable future.



Here&#8217;s the option play to enable us to profit from that weakness.



Trade structure &#8211; the long put spread explained &#8211; positioned for short continuation. 



My play here is a long put spread, which positions us for Google to remain weak. A long put spread involves purchasing a long put and financing part of the cost with a short put. 



The stock&#8217;s current relative resistance zone sits right around $176 and support sits below at $157, so our long put spread is going to look like this:



<ul class="wp-block-list">
<li>Buy to open 1 GOOG 20Jun 2026 170 puts </li>



<li>Sell to open 1 GOOG 20Jun 2026 160 puts </li>
</ul>



This long put spread held a current debit of $3.22 at this writing, representing the total risk incurred in the trade. The breakeven price of the stock at expiration on this trade is $166.79 less commissions. 



The highest potential profit is $10 (the distance between the $170 and $180 strikes) less the cost of the debt incurred by buying the long put spread, so $10 &#8211; $3.22 = $6.78 minus commissions.



The strategy provides several ways to exit, but here are the main two:



<ol class="wp-block-list">
<li>To sell the put spread at either the test of $160 or when the profit goal moves into your target parameters – particularly once the middle strike is tested near the expiration time. I often look for a 40%-70% return with these trending trades. </li>



<li>To sell the put spread when your loss threshold is breached. Customarily, this is 30% for me.</li>
</ol>



<h2 class="wp-block-heading">This Memorial Day: Turn Market Noise Into Clear, Actionable Buy Signals for 60% Off</h2>



Wall Street's top analysts. Insider moves. Real-time portfolio alerts. With Benzinga Edge, you won't just read about profits… you'll know what to buy, when to buy and why. Get the 60% Deal <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052325&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a> Before It's Gone!



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

Opinion

GOOGL

My Top Big Tech Option Trade Of The Week

In an era dominated by the rush toward renewable energy, coal might seem like some relic of the past. Yet, for people willing to look beyond the headlines, the coal industry holds hidden gems. <a href="https://www.peabodyenergy.com/">Peabody Energy</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTU#NYSE">BTU</a>), the largest coal producer in the United States, stands out as a compelling opportunity. Trading at a steep discount to its intrinsic value, with robust financials and a global footprint, Peabody offers a rare blend of stability and growth potential. This coal titan is a standout choice, poised to reward those who see its enduring relevance.



<h2 class="wp-block-heading">A Legacy of Strength in a Shifting Industry</h2>



Peabody Energy, founded in 1883 and based in St. Louis, Missouri, has weathered over a century of economic cycles to emerge as one of a global leader in coal production. The company operates 17 mines across the United States and Australia, extracting both thermal coal for power generation and metallurgical coal for steelmaking. Its crown jewel, the North Antelope Rochelle Mine in Wyoming, produces over 60 million tons of thermal coal annually, making it one of the world's largest coal operations. In Australia, Peabody's Queensland and New South Wales mines, including the recently reactivated Centurion Mine, cater to the growing demand for metallurgical coal in Asia.



Such kind of diversified portfolio sets Peabody apart. While thermal coal faces headwinds in developed markets due to the shift toward renewables, metallurgical coal remains a critical input for steel production, particularly in fast-growing economies like China and India. With exports to over 26 countries-generating 55-63% of its revenue from international markets- Peabody is not tethered to any single region. Global reach, combined with its operational efficiency, positions the company to navigate the complexities of a transitioning energy landscape.



<h2 class="wp-block-heading">Financial Fortitude: A Case for Undervaluation</h2>



Peabody's financial health tells a story of resilience and opportunity. At a share price of $14.61, the company trades at a price-to-earnings (P/E) ratio of 6.5, far below the coal industry average of 9.04. This suggests a 40% discount to peers, implying a fair value closer to $17.72 based on its earnings per share of $1.96. The stock's price-to-book (P/B) ratio of 0.42 is equally striking, indicating that the market values Peabody at less than half its book value-a rarity in today's market. Similarly, its price-to-sales (P/S) ratio of 0.4 reflects a market capitalization of $1.54 billion, just 40% of its $4.24 billion in annual revenue.



The company's operational efficiency shines through in its enterprise value-to-EBITDA ratio of 1.7, among the lowest in the industry, signaling that Peabody generates strong earnings relative to its $1.37 billion enterprise value. Its balance sheet is equally impressive: a debt-to-assets ratio of 7.8% and a debt-to-equity ratio of 12.8% reflect minimal leverage, while its EBITDA covers interest expenses 9.5 times. With a current ratio of 2.2, Peabody can comfortably meet short-term obligations. Add to that $205.2 million in free cash flow and a price-to-cash-flow ratio of 2.6, and it's clear the company is a cash-generating machine, supporting both its modest 2.4% dividend yield and future growth initiatives.



Peabody's metrics reveal a company that offers deep value and strong fundamentals, boasting profitability metrics-10.5% operating margin, 10.5% net margin, 11.1% return on equity, and 10.3% return on assets- that compete with far pricier rivals. Peabody opens to us as a bargain, hiding in plain sight.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="636" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-1024x636.png" alt="" class="wp-image-13299" style="width:599px;height:auto" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-1024x636.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-300x186.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-768x477.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">The Coal Conundrum: Challenges and Catalysts</h2>



The coal industry is at a crossroads. In 2025, thermal coal prices hover around $95 per ton, weighed down by reduced demand in Europe and softer imports from China. Metallurgical coal, by contrast, commands $183 per ton, buoyed by steady steel production in Asia. Production costs vary-$10-20 per ton for U.S. thermal coal and $60-90 per ton for Australian metallurgical coal-but Peabody's margins remain healthy, thanks to its low-cost operations and diversified revenue streams.



Long-term challenges loom, particularly in developed markets where environmental regulations and the push for renewables are squeezing thermal coal demand. Yet, recent events underscore coal's enduring role. Power outages in Spain and Portugal, linked to overreliance on renewables, highlight the risks of grids where green energy exceeds 15% of capacity. In developing economies, coal remains a cornerstone of energy security, with India and Southeast Asia driving demand. Moreover, underinvestment in new coal deposits over the past decade has depleted global reserves-Peabody's own stood at 2.4 billion tons in 2022-setting the stage for potential supply shortages and price spikes.



Peabody is pretty well-equipped to capitalize on these dynamics. Its low debt and high cash flow provide a buffer against price volatility, while its focus on metallurgical coal aligns with Asia's industrial growth. The reactivation of the Centurion Mine in Australia further strengthens its position in this resilient segment, where reserve growth outpacing industry trends.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-1024x768.jpg" alt="" class="wp-image-13309" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-1024x768.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-300x225.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-768x576.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Image credit: https://www.peabodyenergy.com/Media-Center/Photo-Gallery/Location-United-States



<h2 class="wp-block-heading">Why Peabody Shines as a Top Stock Pick</h2>



Peabody Energy offers a compelling case for investors seeking value and resilience. At $14.61, its stock is undervalued by nearly 40% relative to its fair value, with analysts projecting a price target of $27.60-an 88.9% upside. This discount persists despite stable coal prices and Peabody's operational strength, suggesting that market skepticism about coal's future is overstated. The company's diversified revenue, minimal debt, and robust cash flow provide a margin of safety, while its 2.4% dividend yield adds an income component.



Catalysts for growth are on the horizon. A rebound in coal prices, driven by supply constraints or renewed energy demand, could unlock significant value. Continued steel production in Asia ensures steady demand for metallurgical coal, while coal's role as a reliable energy source may see a resurgence in markets grappling with renewable energy's limitations. Risks, such as regulatory pressures and price volatility, are real but mitigated by Peabody's financial discipline and global diversification.



<h2 class="wp-block-heading">A Resounding Recommendation</h2>



Peabody Energy stands out as a rare opportunity in a misunderstood sector. Its undervaluation, strong fundamentals, and strategic positioning make it a prime candidate for investors looking to capitalize on the coal industry's resilience. With a "Strong Buy" rating from analysts and a clear path to significant upside, Peabody is not just a stock- it's a story of value waiting to be rediscovered. For those willing to dig a little bit deeper, this coal giant is a shining prospect.

Long Ideas

Commodities

Signals

Peabody Energy: Unlocking Value In A Misunderstood Market

The U.S. House of Representatives passed one of the most expansive tax-and-spending bills in modern history, setting the stage for a multi-trillion-dollar shift in federal deficits and sector <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">dynamics over the next decade.</a>



The legislation is projected to balloon the federal deficit by over $3 trillion between 2025 and 2034, according to preliminary estimates from the Congressional Budget Office. The fiscal impact will peak around 2027, when the bulk of the temporary spending programs and tax cuts kick in.



<h1 class="wp-block-heading">Fiscal Alarm Bells Ring On Wall Street</h1>



Analysts at the bipartisan federal agency warn that such a sharp increase comes at a time when U.S. debt is already on an unsustainable trajectory.



"Adding more than $3 trillion to the debt when our nation's finances are already on an unsustainable path would be unwise," the CBO stated. 



"Lawmakers should go back to the drawing board and work on a bill that reduces deficits, not adds to them."



Spencer Hakimian, founder of Tolou Capital warned that with the bill's passage, markets should brace for permanent emergency-style stimulus and $4 trillion annual deficits within a few years.



"This is COVID-style spending — without the pandemic," Hakimian said in a post on X.



Goldman Sachs' economist Alec Phillips highlighted that Moody's recent U.S. credit rating downgrade was influenced by the bill's trajectory, stating, "Markets are already attuned to fiscal risks… early August remains our base case for enactment."



<h1 class="wp-block-heading">How The House Tax Bill Could Shake Up Different Sectors</h1>



According to CBO projections, the bill increases the deficit in three key government areas — meaning more spending is likely ahead:



<ul class="wp-block-list">
<li>Judiciary: $7 billion (deficit increase)</li>



<li>Armed Services: $144 billion</li>



<li>Homeland Security: $67 billion</li>
</ul>



This suggests significant boosts to military procurement, border enforcement and law enforcement infrastructure. These sectors could benefit from rising federal contracts and equipment orders, with likely beneficiaries including the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) and the First Trust Nasdaq Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).



At the core of the bill is the Ways &amp; Means Committee, responsible for all tax policy, Social Security, Medicare, unemployment benefits and tariffs. This section alone accounts for $3.775 trillion of the total deficit increase.



Other areas of the budget plan reflect deficit reductions, which generally imply spending cuts or revenue gains. These include:



<ul class="wp-block-list">
<li>Energy &amp; Commerce: -988 billion (deficit reduction).</li>



<li>Agriculture: -$238 billion</li>



<li>Education &amp; Workforce: -$349 billion</li>



<li>Financial Services: -$5 billion</li>



<li>Natural Resources: -$20 billion</li>



<li>Oversight &amp; Government Reform: -$51 billion</li>



<li>Transportation &amp; Infrastructure: -$37 billion</li>
</ul>



Potential ETF losers include Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>), iShares MSCI Agriculture Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEGI#NYSE">VEGI</a>), and iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>), given expected cuts to renewables subsidies, rural and transportation programs.



<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">&#x1f1fa;&#x1f1f8; CBO&#39;s First Score of House Reconciliation Bill &#8211; CRFB<a href="https://t.co/iFM00ypPuM">https://t.co/iFM00ypPuM</a> <a href="https://t.co/JmkCrJ8W3q">pic.twitter.com/JmkCrJ8W3q</a>&mdash; Christophe Barraud&#x1f6e2;&#x1f433; (@C_Barraud) <a href="https://twitter.com/C_Barraud/status/1925540653607395776?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h1 class="wp-block-heading">Market Reactions</h1>



Initial market reactions hit the solar and renewables sectors, which suffered the brunt of market fallout. With many solar tax subsidies ended, the Invesco Solar ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NASDAQ">TAN</a>) fell 9% on Thursday. Among key names:



<ul class="wp-block-list">
<li>Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) collapsed 40%</li>



<li>SolarEdge Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>) dropped 26%</li>



<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) fell 19%</li>



<li>First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) declined 4%</li>
</ul>



Abigail Ross Hopper, CEO of the Solar Energy Industries Association, warned the bill would "upend an economic boom," potentially leading to blackouts and a strategic loss to China in the global AI race.



"This bill is willfully ignorant of the fact that deploying solar and storage is the only way the U.S. power grid can meet demand&#8230; If it becomes law, America will effectively surrender the AI race to China."



In contrast, consumer-related stocks rallied, buoyed by expectations of tax relief and increased household spending power. The SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) climbed 1.5%, led by Advance Auto Parts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>), which soared 42% after a blowout earnings report.



Within tech-focused defense names, Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) jumped 4.5%, while cybersecurity leader CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) gained 2.6%. 



Read Now:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45567476/us-business-activity-rebounds-in-may-but-tariff-fueled-inflation-surges-at-fastest-pace-in-3-years">US Business Activity Rebounds In May, But Tariff-Fueled Inflation Surges At Fastest Pace In 3 Years</a> Photo: iQoncept via Shutterstock<a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45567476/us-business-activity-rebounds-in-may-but-tariff-fueled-inflation-surges-at-fastest-pace-in-3-years"> </a></li>
</ul>

Analyst Color

Macro Economic Events

Sector ETFs

Bonds

Broad U.S. Equity ETFs

Analyst Ratings

ETFs

CIBR

CRWD

ENPH

FSLR

SEDG

VEGI

Big Tax Cuts, Big Deficits: Wall Street Winners And Losers Emerge

U.S. private sector activity accelerated sharply in May as both manufacturing and services topped forecasts, yet a surge in prices driven by tariff impacts pushed inflationary signals to levels last<a href="https://www.benzinga.com/topic/inflation"> seen in August 2022.</a>



S&amp;P Global's flash Purchasing Managers Indices (PMIs) for May painted a strong picture of U.S. economic momentum. The composite PMI rose to 52.1, a solid jump from April's 50.6 and firmly above the neutral 50 line that separates growth from contraction.



<h3 class="wp-block-heading">Confidence Rebounds, But So Do Tariff Troubles</h3>



The services PMI improved from 50.8 to 52.3 and beat forecasts of 50.8. Similarly, the manufacturing PMI rebounded from 50.2 to 52.3 and exceeded estimates of 50.1. 



Business sentiment, which had dropped to a two-and-a-half year low in April, rebounded in May to its highest level since January. 



Chris Williamson, chief business economist at S&amp;P Global Market Intelligence, said optimism was largely tied to "the pause on higher rate tariffs."



Yet, the data masked growing stress beneath the surface. Export demand continued to contract, particularly in the services sector, while supply chain delays intensified. 



Delivery times worsened to the greatest extent since October 2022. 



The inventory buildup of manufacturing inputs surged at the fastest pace in the 18-year history of the survey, as firms rushed to secure supplies ahead of potential tariff hikes once the current 90-day pause expires in July.



<h3 class="wp-block-heading">Inflation Pressure Spikes To 2022 Levels</h3>



Tariffs were the central inflationary force in May, driving prices higher at a pace unseen since August 2022. Selling prices for manufacturers posted the biggest increase since September 2022. Meanwhile, services firms raised prices at the fastest rate since April 2023.



"Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022," Williamson said. 



"Prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers."



Manufacturing input costs rose at their sharpest rate since August 2022, while service sector costs grew at their fastest pace in nearly a year. The spike reflects companies stockpiling goods and pushing through costs before the tariff moratorium ends.



<h3 class="wp-block-heading">Markets React As Inflation Concerns Rise</h3>



Financial markets responded swiftly to the dual signals of economic strength and accelerating inflation. 



The U.S. dollar index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – strengthened after several weak sessions, supported by rising expectations that the Federal Reserve will maintain its current interest rate policy for longer.



Yields on 10-year Treasuries held steady at 4.59%, while 30-year yields eased slightly to 5.11% after touching 5.15% earlier in the session.



Equity markets showed mild optimism. The S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – rose 0.3% and the tech-heavy Nasdaq 100 gained 0.8%, trimming losses from earlier in the week.



Read now: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">Trump&#8217;s Big Tax Bill Clears The House: 30-Year Yields Jump To 5.15% As Bond Market Freaks </a></li>
</ul>



Photo: Shutterstock

Econ #s

US Business Activity Rebounds In May, But Tariff-Fueled Inflation Surges At Fastest Pace In 3 Years

The U.S. House narrowly passed President Donald Trump's sweeping tax-cut bill Thursday, triggering a spike in Treasury yields as investors reacted to the bill's multi-trillion-dollar price tag and its long-term<a href="https://www.benzinga.com/government/regulations/25/05/45550324/us-bond-market-flashing-red-30-year-yield-tops-5-prices-tank-to-october-2023-lows"> implications for debt sustainability.</a>



The yield on 30-year Treasury bonds surged to 5.15% in early New York trading, marking the highest level since October 23, 2023. 



The move came after the House approved the $3.8 trillion tax-and-spending package by a razor-thin 215–214 margin, with all Democrats and two Republicans voting against it, and one Republican voting present.



The bill, dubbed by Trump as the "one big, beautiful bill," advances to the Senate, where a vote is expected before the July 4 recess. If enacted, it would enact broad tax cuts, increase spending, and lift the deficit trajectory by trillions over the next decade.



<h3 class="wp-block-heading">Debt Explosion In The Spotlight</h3>



JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) CEO Jamie Dimon indicated that while Trump's plan may help stabilize the business cycle, it does little to fix America's fiscal path.



"I think the deficit will be large and probably growing," Dimon told Reuters. "Governments can spend money and still fail to drive growth. Responsibility matters."



Dimon echoed concerns shared by both credit analysts and institutional investors who say the long-term trajectory of U.S. debt could undermine confidence in Treasuries if spending continues unchecked.



The bill could increase the national debt—already at a record $36.2 trillion—by anywhere from $2.3 trillion to $5.7 trillion by 2034, depending on whether key tax breaks are extended, according to estimates from the Congressional Budget Office and the Committee for a Responsible Federal Budget.



"Stock investors may now be getting spooked that the bond market might be on the verge of a debt crisis," said veteran investor Ed Yardeni, pointing to the recent Moody's downgrade of U.S. sovereign credit and rising global bond yields.



Yardeni noted that the S&amp;P 500's 1.61% decline on Wednesday was already a reaction to the poorly received 20-year bond auction, and Thursday's vote could accelerate concerns. 



"Trump's ‘Big Beautiful Bill' could push deficits and debt into uncharted territory," he said.



<h3 class="wp-block-heading">Is A Debt Crisis Inevitable?</h3>



Yardeni raised the possibility that bond vigilantes—investors demanding higher yields to compensate for rising fiscal risk—could push the 10-year Treasury yield above 5% in coming weeks. 



Still, he said a full-blown debt crisis might not be catastrophic if it forces Washington toward fiscal discipline.



"In that case, a debt crisis would actually be a buying opportunity for stocks. Fasten your seat belts," Yardeni said.



According to Yardeni, the Federal Reserve could reserve a new Quantitative Easing (QE) to alleviate the Treasury&#8217;s financing pressures.



Another option could be shifting Treasury issuance toward short-term bills, as seen under Janet Yellen's 2023 playbook, which may temporarily ease pressure on long-term yields without requiring Fed intervention. 



Yet, the Treasury&#8217;s so-called Yield Curve Control makes U.S. debt far more sensitive to interest rate swings, increasing rollover risk as more debt matures faster.



With federal debt already at $36.2 trillion, even modest rate hikes could sharply raise borrowing costs, amplifying concerns about long-term fiscal sustainability.



Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45544593/hedge-funds-are-building-a-towering-wall-of-bets-against-stocks">Hedge Funds Are Building A Towering Wall Of Bets Against Stocks</a>



Photo: Shutterstock



<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45544593/hedge-funds-are-building-a-towering-wall-of-bets-against-stocks"><span class="author" style="box-sizing: border-box; border: 0px solid rgb(229, 231, 235); --tw-scale-x: 1; --tw-scale-y: 1; --tw-pan-x: ; --tw-pan-y: ; --tw-pinch-zoom: ; --tw-scroll-snap-strictness: proximity; --tw-gradient-from-position: ; --tw-gradient-via-position: ; --tw-gradient-to-position: ; --tw-ordinal: ; --tw-slashed-zero: ; --tw-numeric-figure: ; --tw-numeric-spacing: ; --tw-numeric-fraction: ; --tw-ring-inset: ; --tw-ring-offset-width: 0px; --tw-ring-offset-color: #fff; --tw-ring-color: rgba(59,130,246,.5); --tw-ring-offset-shadow: 0 0 #0000; --tw-ring-shadow: 0 0 #0000; --tw-shadow: 0 0 #0000; --tw-shadow-colored: 0 0 #0000; --tw-blur: ; --tw-brightness: ; --tw-contrast: ; --tw-grayscale: ; --tw-hue-rotate: ; --tw-invert: ; --tw-saturate: ; --tw-sepia: ; --tw-drop-shadow: ; --tw-backdrop-blur: ; --tw-backdrop-brightness: ; --tw-backdrop-contrast: ; --tw-backdrop-grayscale: ; --tw-backdrop-hue-rotate: ; --tw-backdrop-invert: ; --tw-backdrop-opacity: ; --tw-backdrop-saturate: ; --tw-backdrop-sepia: ; --tw-contain-size: ; --tw-contain-layout: ; --tw-contain-paint: ; --tw-contain-style: ;"></a>

Trump's Big Tax Bill Clears The House: 30-Year Yields Jump To 5.15% As Bond Market Freaks

Markets have come close to returning to February highs after China and the U.S. reduced their tariffs. While markets are still shaky, with a Treasury bond auction on Tuesday sending stocks down, most of the tariff drama seems to be over for now.



But, while markets as a whole have recovered and earnings are upbeat, some undervalued companies still have not participated in the rebound.



That&#8217;s a huge buying opportunity.



Today, we'll look at five undervalued stocks in tariff-stricken industries that could see new life in the second half of 2025. Each of these stocks has at least a 90 Benzinga Edge Value score and a technical or fundamental catalyst indicating that a potential uptrend is forming.



<h2 class="wp-block-heading">KB Home Inc.</h2>



Benzinga Edge Value Score: 94.40



KB Home Inc.  (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) builds single-family homes, townhomes, and condos across the southern and western parts of the United States. The company has a $3.8 billion market cap and reported sales over $2.85 billion in the last 12 months. Homebuilders have been under siege for two years now in the face of several headwinds: persistently high mortgage rates, increasing materials costs, tariffs on many of those same materials, and immigration crackdowns cutting into the construction labor force. But now that tariffs have been slashed and the Trump administration seems more focused on a tax cut extension, homebuilders like KB Homes could finally see some relief. 



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdnq69l4211aQFv0LYUvVH27eio2kDHWxR3SA3slIy8lV-f1qh0LGnArR4pg_9Ns-WqNVNhUC2RVfMjwh_Egi2Bu3EI8kcawnNm0oxXt_0AN74PdNFalJ2p9v_1VPB7z7V7kI6NpA?key=05JYZ0nbTmdWyX2hLdJTgA" alt=""/></figure>



KBH was the rare homebuilder that survived the 2022 bear market with momentum. The stock shot from $25.51 to a new all-time high above $85 in July 2024, the first time it closed over $85 since before the Great Recession of 2005. But momentum faded last fall, and the stock tumbled from $85 to $50 in just five months. However, this selloff might reveal a very undervalued stock: KBH trades at just 7.2 times forward earnings with a 0.56 Price-to-Sales (P/S) ratio and 0.94 Price-to-Book (P/B) value. The stock also has technical tailwinds thanks to an emerging support level and bullish movement on the MACD, which could indicate the downtrend is shifting upward.



<h2 class="wp-block-heading">Shoe Carnival Inc.&nbsp;</h2>



Benzinga Edge Value Score: 94.37



Apparel is another industry suffering outsized pain from tariffs, especially in the footwear department. Companies like Nike and Foot Locker have suffered sustained drawdowns, many of which started long before the harshest tariffs were implemented earlier this year. Shoe Carnival (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCVL#NASDAQ">SCVL</a>) is a smaller firm than these giants, but they sell Nike, Adidas, Sketchers, Converse, and HEYDUDE-brand shoes at brick-and-mortar family-oriented outlets. 



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcOtXdVF9Ll8R4O1__yssP5fgq_n2v6DlRqxyQWRGvb_gf87zCG8KdcFyiIszt9oq5Pxt_Avksy4bZmZIkqF-1Mir_YRYnVntqs24FFEHarqksTWyGO_8ejyFzaRd9Vwjg29UfkAA?key=05JYZ0nbTmdWyX2hLdJTgA" alt=""/></figure>



Despite tariff pressure, Shoe Carnival has maintained profit margins above 6%. The stock trades at 10 times forward earnings with a 0.46 P/S ratio and 0.84 P/B value and pays a 2.99% dividend yield. Shares are down more than 35% year-to-date (YTD), but the stock has staged a small rally in the last month. SCVL was up 17% the previous month, and the Relative Strength Index (RSI) showed a breakout above a multi-month trading range.



<h2 class="wp-block-heading">Danaos Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>)</h2>



Benzinga Edge Value Score: 95.33



Danaos Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAC#NYSE">DAC</a>) is an international bulk shipper with nearly 70 container ships, operating primarily in Asia and Europe. The company has a $1.6 billion market cap and posted over $1 billion in sales over the last year. Shipping companies were treading water in the sessions following the reciprocal tariff announcement, but rescinding those import fees has sent the stock careening toward new all-time highs.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcYBQP9UIHRwMYq2zfEQKUWzMOybRoDN_7db7Ov69Imb7vBWXoHoDBioecJhfwq1BZY30uFBxPbE8r9X3R5NzC58qaisx60U_nacS0am5ydpl8W2vO5XC_SuaC6DQ_BYgyEunUeeA?key=05JYZ0nbTmdWyX2hLdJTgA" alt=""/></figure>



Danaos reported earnings on May 13, and while the EPS figure was a miss, the company posted a surprise revenue beat, surpassing analysts' expectations by 4.7%. This report spurred researchers at Jeffries to reiterate the stock as a Buy and bump their price target to $105, indicating an upside potential of nearly 24%. The stock trades at just 3.2 times forward earnings, and its 46% profit margins are among the best numbers in the marine shipping industry. Shares are also riding a new support level above the 14-day exponential moving average (EMA), indicating the breakout may have more upward momentum ahead.



<h2 class="wp-block-heading">G-III Apparel Group Ltd.&nbsp;</h2>



Benzinga Edge Value Score: 95.62



Another apparel company on the verge of a potential breakout is G-III Apparel Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIII#NYSE">GIII</a>), which manufactures licensed brands like DKNY, Tommy Hilfiger, Kenneth Cole, Dockers, and more alongside its own in-house brands and private labels. G-III Apparel has more than $3 billion in annual global sales, and its daily stock chart shows signs of a breakout similar to DAC&#8217;s.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeeiGthQN-5WeqcmH9jyWFcXSqPvQt4vw2BpEGYRjfPTd2v5HjW11imebFIsPTiG1w6dSbJBgPIii-baUKgMIqNqfTNU03BHMpuMzgOk2FCctCZQ6QrX7lusLn42Ef6kIR1eH1oXg?key=05JYZ0nbTmdWyX2hLdJTgA" alt=""/></figure>



The stock's 14-day EMA recently crossed the 21-day EMA, a bullish signal that now sees the 14-day EMA acting as support as shares break out above their pre-Liberation Day high water mark. The RSI also remains under 70, showing the stock has not yet reached overbought levels. GIII expects a net sales boost of more than 6% in the upcoming quarter, and the stock trades at just 6.7 times earnings with a 0.39 P/S ratio and 0.17 debt/equity ratio.



<h2 class="wp-block-heading">ASE Technology Holdings Co.&nbsp;</h2>



Benzinga Edge Value Score: 90.05



Tech is one sector that hasn't been struggling as much as the broader market, but some semiconductor companies are still undervalued, and ASE Technology Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASX#NYSE">ASX</a>) has the signs of a stock ready to break higher. ASE tests and packages semiconductors for U.S., Asian and European firms and provides real estate and lab equipment for plants and warehouses.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdA4ECj1L7-wOQBK8ue731i8fuRgbENlquwqcKkeI9hX8nqKo0cYFQ96drdHc-lMpXBl02H5msRxC1CMxHmqhNGeBM_x_WgfFGY2BRshq_QSDrgFRvcC5CPwVDQ0eMPtC7u2v4P9A?key=05JYZ0nbTmdWyX2hLdJTgA" alt=""/></figure>



ASE shares experienced a 14-day and 21-day EMA cross, which provided bullish momentum and sent the stock above its pre-tariff announcement levels. The stock pulled back recently but is now approaching the 14-day EMA, which has been acting as support over the last few weeks. The stock has a 19.7 P/E ratio but trades at just 11.6 times forward earnings, with annual sales eclipsing $18 billion. The company also expects EPS growth of over 40% this year, which could further fuel this rally.



<h2 class="wp-block-heading">Your Edge To Beat The Market—Now 60% Off For Memorial Day</h2>



Get the tools serious investors use to build real wealth. With Benzinga Edge, you'll unlock weekly hidden-gem stock picks, analyst-backed rankings, and pro-grade screeners all in one dashboard. Join today <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052225&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a> and Save 60% for Memorial Day.



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

GIII

SCVL

5 Undervalued Stocks To Buy On China Tariff Cuts

After breaking an 11-week-long streak last week of being above the 50% mark, the bearish sentiment, measured by the American Association of Individual Investors (AAII) Sentiment Survey, slipped below the 40% mark in the current week.



What Happened: Additionally, the bullish sentiment for this survey, which is conducted weekly from Thursday to Wednesday, topped the bearish sentiment for the first time in 17 weeks, since Jan. 29.



However, it was still neck and neck as bearish sentiment stood at 36.7%, whereas the bullish sentiment came in at 37.7% for the week that ended on Wednesday, May 21.



The neutral sentiment for the week stood at 25.6%, which was at its highest level in 12 weeks since Feb. 19.



As compared to last week, pessimism dropped by 7.7% from 44.4% to 36.7%. Whereas optimism increased 1.8% from 35.9% to 37.7%.



The 11-week-long bearish sentiment above 50%, which ended last week, was the highest ever, as the second-longest streak of such pessimism was last observed in 1990. The old streak was just <a href="https://www.benzinga.com/government/regulations/25/04/44730455/bearish-sentiment-hits-7-week-high-mimicking-35-year-old-record-which-marked-the-bottom-of-the-october-1990-bear-market">seven weeks long</a>.



The historical averages of bearish sentiment stood at 31%, and that of the bullish sentiments were at 37.5% among the participants of the AAII survey.



See Also: <a href="https://www.benzinga.com/markets/equities/25/05/45559366/urban-outfitters-navigates-tariff-headwinds-with-diversification-strategies-no-country-accounts-for-more-than-25-of-production">Urban Outfitters Navigates Tariff Headwinds With Diversification Strategies: No Country &#8216;Accounts For More Than 25%&#8217; Of Production</a>



Why It Matters: This week&#8217;s special question to the AAII survey participants was &#8220;What do you think about the Federal Reserve&#8217;s decision to keep interest rates unchanged?&#8221;



To this, about 73.6% of the participants said that the Fed did the right thing by not cutting the rates, while 17.1% of the participants said that they should have cut interest rates. About 6.6% of the respondents were not sure and had no opinion, while 2.7% said that the Fed should have raised the interest rates.



The stock market has recovered since the U.S. and China decided to <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">pause tariffs for 90 days</a>; however, a <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>, rising yields, and investors&#8217; assessment of President Donald Trump&#8216;s proposed tax cuts in the &#8220;<a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">One, Big, Beautiful Bill</a>&#8221; have led the market lower for the last two sessions.



On Thursday, 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. The SPY was down 0.37% to $580.73, while the QQQ declined 0.37% to $511.16, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/05/45533521/charlie-munger-once-said-the-first-rule-of-compounding-is-to-never-interrupt-it-unnecessarily-now-hi" target="_blank" rel="noreferrer noopener">Charlie Munger Once Said, ‘The First Rule Of Compounding Is To Never Interrupt It Unnecessarily&#8217; — Now His Wisdom Rings True As The S&amp;P 500 Surges 220% Over 10 Years</a></li>
</ul>



Photo: Shutterstock

General

Bulls Beat Bears For The First Time In 17 Weeks, Pessimism Drops As Bearish Sentiment Slides Below 40%

U.S. stock futures swung on Thursday after two days of decline on Wednesday. Futures of major benchmark indices were trading mixed in premarket.



After a marathon 22-hour hearing, the <a href="https://www.benzinga.com/25/05/45558613/house-advances-trumps-sweeping-one-big-beautiful-bill-after-key-medicaid-tax-and-border-security-changes">House Rules Committee moved</a> President Donald Trump&#8216;s &#8220;$4.9 trillion legislative package&#8221; forward with an 8-4 vote on the &#8220;One Big Beautiful Bill Act.&#8221; 



This action paves the way for a potential overnight floor vote, as Republicans press ahead despite internal party disagreements.



Meanwhile, the 10-year Treasury bond yielded 4.57% and the two-year bond was at 3.99%. 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 94.7% 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>-0.07%</td></tr><tr><td>S&amp;P 500</td><td>0.06%</td></tr><tr><td>Nasdaq 100</td><td>0.13%</td></tr><tr><td>Russell 2000</td><td>-0.04%</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, rose in premarket on Thursday. The SPY was up 0.14% to $583.68, while the QQQ advanced 0.25% to $514.34, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Most S&amp;P 500 sectors closed lower Wednesday, with real estate, healthcare, and financial stocks seeing the largest declines.



However, communication services bucked the trend, finishing higher. Investors remained cautious amid fresh worries about fiscal policy.



Meanwhile, Lowe's Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) reported mixed first-quarter fiscal 2025 results, and Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) posted weaker-than-expected first-quarter figures.



On the economic front, U.S. mortgage application volumes fell 5.1% from the prior week for the period ending May 16.



The Dow Jones index declined 817 points or 1.91% to 41,860.44, whereas the S&amp;P 500 index fell 1.61% to 5,844.61. Nasdaq Composite ended 1.41% lower at 18,872.64, and the small-cap gauge, Russell 2000, dropped 2.80% to 2,046.56.



<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>-1.41%</td><td>18,872.64</td></tr><tr><td>S&amp;P 500</td><td>-1.61%</td><td>5,844.61</td></tr><tr><td>Dow Jones</td><td>-1.91%</td><td>41,860.44</td></tr><tr><td>Russell 2000</td><td>-2.80%</td><td>2,046.56</td></tr></tbody></table></figure>



Insights From Analysts:



The Senior Global Market Strategist at Wells Fargo, Scott Wren, said that &#8220;We do not see the U.S. economy dipping into a recession this year as consumer spending should continue to grow modestly with growth in real incomes.&#8221;



Wren anticipates a modest rebound in GDP next year, rising to 1.8% from their projected 1% for this year, following a continued growth slowdown over the next couple of quarters.



Wells Fargo doesn&#8217;t foresee a U.S. recession this year because consumer spending should continue its modest growth, bolstered by increasing real incomes, even if it&#8217;s weaker than late last year.



While unemployment is expected to tick up due to below-average economic growth, Wells Fargo&#8217;s 5.3% projection for 2026 remains well below recessionary levels.



Furthermore, he added that &#8220;We also still see plenty of up and down in equity prices but ultimately a higher S&amp;P 500 Index by the end of 2026.&#8221;



Meanwhile, Kristian Kerr, head of macro strategy at LPL Financial, said that &#8220;Greater clarity is expected later this summer, as economic data tends to lag, meaning the full impact of tariffs may not be evident until June or July at the earliest.&#8221;



Additionally, he explained that the current policy landscape remains in flux, with broader tariffs largely paused until early July and China exempt from significant tariff increases until August 12.



&#8220;If meaningful economic weakness does materialize — confirmed by hard data mirroring the softness seen in leading indicators — or trade negotiations deteriorate, another bout of market volatility could ensue, potentially aligning with historical seasonal patterns where equities often struggle from late summer into fall.&#8221;



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 Thursday:



<ul class="wp-block-list">
<li>Initial jobless claims data for the week ending May 17 will be out by 8:30 a.m. ET.</li>
</ul>



<ul class="wp-block-list">
<li>The S&amp;P flash U.S. services and manufacturing PMI for May will be released by 9:45 a.m. ET.</li>
</ul>



<ul class="wp-block-list">
<li>April&#8217;s existing home sales will be announced by 10:00 a.m. ET.</li>
</ul>



<ul class="wp-block-list">
<li>New York Fed President John Williams will speak at 2:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>BJ&#8217;s Wholesale Club Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BJ#NYSE">BJ</a>) was up 0.51% in premarket on Thursday as analysts expect it to report quarterly earnings of 91 cents per share on revenue of $5.20 billion, before the opening bell.</li>



<li>Analog Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>) advanced 1.16% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of $1.70 per share on revenue of $2.51 billion.</li>



<li>Williams-Sonoma Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSM#NYSE">WSM</a>) was 0.048% higher as analysts expect it to report quarterly earnings of $1.76 per share on revenue of $1.67 billion, before the opening bell.</li>



<li>Advance Auto Parts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) rose 1.25% as Wall Street expects it to report earnings before the opening bell. It is expected to post a quarterly loss of 69 per share on revenue of $2.51 billion.</li>



<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) jumped 9.54% after posting better-than-expected earnings and sales results for the first quarter. The company also said it expects second-quarter product revenue in the range of $1.035 billion to $1.04 billion, up approximately 25% year-over-year.</li>



<li>Zoom Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) was 0.17% higher after reporting stronger-than-expected earnings for its first quarter after Wednesday's closing bell.</li>



<li>Urban Outfitters Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/URBN#NASDAQ">URBN</a>) surged 17.50% after posting a better-than-expected first quarter result and highlighting diversification strategies to mitigate tariffs in its earnings call.</li>



<li>Honeywell International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HON#NASDAQ">HON</a>) was up 0.13% after announcing the acquisition of Johnson Matthey&#8216;s Catalyst Technologies business, expanding its portfolio of leading catalyst and process technologies.</li>



<li>Rio Tinto PLC ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) advanced 0.58% after announcing the start of early works and final studies to increase Amrun mine's bauxite production on Queensland's Cape York Peninsula.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 1.20% to hover around $60.83 per barrel.



Gold Spot US Dollar fell 0.10% to hover around $3,312.13 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.169% at the 99.7170 level.



Asian markets were lower on Thursday as South Korea's Kospi, India's S&amp;P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, Hong Kong's Hang Seng, and China&#8217;s CSI 300 indices declined. European markets were also lower in early trade.



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<li><a href="https://www.benzinga.com/general/market-summary/25/05/45541408/cathie-woods-ark-invest-says-nuclear-energy-could-overtake-solar-as-cheapest-power-source-heres-a-list-of-nuclear-energy-linked-etfs-to-consider">Cathie Wood&#8217;s Ark Invest Says Nuclear Energy Could Overtake Solar As Cheapest Power Source: Here&#8217;s A List Of Nuclear Energy Linked ETFs To Consider </a></li>
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Photo courtesy: Shutterstock

SNOW

URBN

US Stock Likely To Open On A Mixed Note After 2-Day Fall: 'We Do Not See The US Economy Dipping Into A Recession This Year,' Says Expert

Even as Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has hit <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45561695/bitcoin-shatters-110000-xrp-dogecoin-ethereum-surge-bulls-emerge-victorious-trader-conclud">a new all-time high</a> above $111,000, driven by surging institutional demand, tightening supply, and macroeconomic tailwinds, experts caution the rally isn't without structural risks, including the looming threat of quantum computing.



What Happened: Bitcoin surged to a new record of $111,544 on Wednesday, extending its post-halving uptrend and highlighting its growing appeal to institutions amid dovish macro signals.



The cryptocurrency was last trading at $111,000, up roughly 1% for the day.



The broader market also gained, with Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>), XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>), and BNB (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/bnb/usd">BNB</a>) up 5%, 6%, 3.4%, and 4.6%, respectively.



However, market sentiment at 72 nears extreme greed, making growth susceptible to pullbacks, especially amid a U.S. government bond sell-off.



What Experts Are Saying: Analysts say the rally is being powered by real spot demand and record ETF inflows, not leverage or hype.



Bitget Research's Chief Analyst Ryan Lee said the rally "reflects a regime shift," citing ETF-driven accumulation and a post-halving supply crunch. 



"Institutional adoption is accelerating, and regulatory clarity, particularly progress on the GENIUS Act is reinforcing market confidence," Lee noted, although he warned that "a stronger U.S. dollar or fresh geopolitical tensions could easily knock momentum off course."



The rally has pushed the total crypto market capitalization briefly past $3.5 trillion. 



Still, FxPro's Alex Kuptsikevich cautioned that the absence of FOMO means growth may remain fragile. 



"Sentiment at 72 is near the extreme greed zone. That often precedes corrective pullbacks," he said.



Bitfinex analysts noted the breakout above $109,500 was driven by "clean spot demand, ETF inflows, and a macro backdrop that favors risk-on assets." 



They added that funding rates remain stable and open interest is rising in line with price—hallmarks of a structurally sound rally.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45543096/why-donald-trump-including-cardano-in-the-crypto-reserve-suprised-even-the-founder-nice-to-see-progress">Why Donald Trump Including Cardano In The Crypto Reserve Surprised Even The Founder: &#8216;Nice To See Progress&#8217;</a>



What&#8217;s Next: Yet, not all analysts are focused on short-term price moves.



David Carvalho, CEO of Naoris Protocol, warned that quantum computing is a "credible existential threat" to Bitcoin's long-term integrity. 



"There are over 100 quantum machines operational globally. With Shor's algorithm, they could break Bitcoin's cryptography," he said, referencing the Elliptic Curve Digital Signature Algorithm that secures the majority of BTC. "Roughly 30% of Bitcoin sits in wallets vulnerable to quantum attacks."



Carvalho noted that while major institutions like BlackRock (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) and agencies such as the NSA are preparing for a quantum-secure future, "investors remain overconfident in the current cryptographic defenses." 



He added, "If even one high-profile wallet is compromised, trust in the system could collapse overnight."



Roshan Robert, U.S. CEO of OKX, emphasized the broader context: "Bitcoin's rise isn't just speculative. It reflects how capital preservation is being redefined across institutions and sovereigns."



With price targets between $114,000 and $125,000 being flagged by several analysts as the next resistance zones, the immediate focus remains on ETF flows and macro data, including U.S. labor figures and central bank remarks later this week.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45534496/altcoin-rotation-is-coming-expert-says-will-eth-xrp-dogecoin-benefit">Altcoin Rotation Is Coming, Expert Says: Will ETH, XRP, Dogecoin Benefit?</a></li>
</ul>



Image: Shutterstock

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$XRP

Bitcoin Breaks $111,000 As Experts Hail 'Regime Shift'

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