Market Recap – May 25th
US stock market indexes extended losses for the fourth consecutive session, as concerns over debt ceiling talks and a potential US default overshadowed the positive news of the Federal Reserve’s potential pause in interest rate hikes. Industrial and financial stocks suffered the most, while energy stocks performed well due to rising oil prices. The Dow Jones and S&P 500 declined by 0.77% and 0.73%, respectively, while the Nasdaq was down by 0.61% at the close.
Looking at specific investments, we’re watching Snowflake and American Eagle Outfitters. Snowflake, the cloud computing company, experienced a decline of approximately 13% in its stock value due to its lower-than-anticipated revenue outlook for the second quarter. Despite this, Snowflake surpassed analysts’ expectations for first-quarter earnings and revenue, as reported by Refinitiv. American Eagle Outfitters, the retailer, witnessed a significant drop of nearly 20% in premarket trading following its announcement of an anticipated revenue decline in the second quarter. American Eagle Outfitters also reported first-quarter earnings per share that aligned with estimates, while its revenue slightly exceeded expectations.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.