Nightly $SPY / $SPX Scenarios for May 22, 2025

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🔮 Nightly SPY / SPX Scenarios for May 22, 2025 🔮

🌍 Market-Moving News 🌍

📈 Treasury Yields Surge Amid Weak Bond Auction

U.S. Treasury yields continued their upward trajectory, with the 10-year yield nearing 4.6% and the 30-year yield surpassing 5%, marking the highest levels since early 2023. This increase followed a weak $16 billion auction of 20-year bonds, which attracted less investor demand and sold at higher-than-expected yields. Factors contributing to the rise include fading recession fears, persistent inflation concerns, and growing fiscal worries related to potential tax cut extensions.

📉 Stock Market Declines as Tech Stocks Retreat

The stock market experienced significant losses, with the Dow Jones Industrial Average dropping 1.9%, falling below its 200-day moving average. The S&P 500 and Nasdaq fell 1.6% and 1.4%, respectively.

💼 Snowflake (SNOW) Reports Strong Earnings

Snowflake Inc. reported record quarterly revenue of $1.04 billion, surpassing expectations. Product revenue increased 26% year-over-year to $996.8 million. The company raised its full-year forecast to $4.325 billion, reflecting a 25% year-over-year increase. Despite a GAAP net loss of $430 million, Snowflake posted an adjusted profit of 24 cents per share, exceeding the 21-cent estimate.

📊 Morgan Stanley Turns Bullish on U.S. Stocks

Morgan Stanley has shifted to a bullish stance on U.S. stocks and bonds, raising its outlook due to signs of market stabilization and improving growth conditions. The bank maintains a base target of 6,500 for the S&P 500 by mid-2026, with a bullish scenario projecting 7,200.

📊 Key Data Releases 📊
📅 Thursday, May 22:

8:30 AM ET: Initial Jobless Claims

9:45 AM ET: S&P Global Flash U.S. Services PMI for May

10:00 AM ET: Advance Services Report (First Quarter 2025)

⚠️ Disclaimer:
This information is for educational and informational purposes only and should not be construed as financial advice. Always consult a licensed financial advisor before making investment decisions.

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