On Wednesday, May 21, 2025, the US stock markets experienced a notable decline that intensified throughout the day. The Dow Jones Industrial Average dropped by 1.66% and closed at about 41,969 points. Similarly, the S&P 500 and Nasdaq both gave up about 0.4%.
Causes of the Decline
A significant factor for the losses was the sluggish auction of US Treasury bonds worth $16 billion, alongside the rise in bond yields. These developments stirred unrest in the markets.
Company-Specific Impacts
In addition to macroeconomic factors, disappointing corporate earnings and discussions about tax cuts contributed to the uncertainty. Companies such as Unitedhealth, which recorded a share loss of about five percent, as well as Wolfspeed and VF Corporation were particularly affected. A silver lining was Medtronic, which gained due to a announced spin-off.
The Investors’ Reaction
For retail investors, the extensive losses and the generally nervous atmosphere led to increased risk in the markets. The downgrade of the US credit rating by Moody’s at the beginning of the week further worsened the situation.
In summary, Wednesday represented a clear period of weakness for the US stock markets. This was intensified by macroeconomic factors and company-specific news. Retail investors are advised to critically examine their strategies in such phases and make adjustments if necessary.