Market Overview
The S&P 500 closed slightly higher on Monday, May 19, 2025, rising 0.1% as investors digested Moody’s downgrade of the U.S. credit outlook. Despite spending most of the day in the red, equities bounced back in the afternoon. The Dow Jones Industrial Average gained 0.3%, while the Nasdaq Composite finished marginally above last week's close.
Investors were cautious as they weighed fresh economic risks, but strength in the biotech and healthcare sectors helped lift broader markets.
UnitedHealth Group (UNH) surged 8.2%, making it the top-performing S&P 500 stock of the day.
Clean energy stocks came under fire after House Republicans proposed rolling back key tax credits from the Inflation Reduction Act, particularly those affecting residential solar installations.
Monday’s session showcased modest gains for U.S. indexes, driven by healthcare strength and selective biotech optimism, even as concerns over the U.S. credit outlook and clean energy policies weighed on sentiment.
The S&P 500 closed slightly higher on Monday, May 19, 2025, rising 0.1% as investors digested Moody’s downgrade of the U.S. credit outlook. Despite spending most of the day in the red, equities bounced back in the afternoon. The Dow Jones Industrial Average gained 0.3%, while the Nasdaq Composite finished marginally above last week's close.
Investors were cautious as they weighed fresh economic risks, but strength in the biotech and healthcare sectors helped lift broader markets.
Top Gainer: UnitedHealth Group (UNH)
UnitedHealth Group (UNH) surged 8.2%, making it the top-performing S&P 500 stock of the day.
- The rebound extended gains from late last week after concerns over a DOJ investigation and executive turnover had weighed heavily on the stock.
- Sentiment improved further after a regulatory filing revealed that incoming CEO Stephen Hemsley purchased a substantial number of shares, signaling confidence in the company’s future.
Biotech Rally: Novavax and Moderna
- Novavax (NVAX) jumped 15% after the FDA granted full approval for its protein-based COVID-19 vaccine.
- Moderna (MRNA) shares also climbed 6.2%, riding on positive momentum within the vaccine space.
Retail Movers
- Dollar General (DG) gained 4.9%, adding to last week's rally after Walmart (WMT) mentioned tariff-related price pressures during its earnings call. Analysts noted that DG’s low exposure to tariffs makes it attractive in the current environment.
- On the flip side, Best Buy (BBY) fell 3% following a Wells Fargo price target cut, citing ongoing macroeconomic uncertainty and tariff-related risks.
Solar & Renewable Energy Stocks Under Pressure
Clean energy stocks came under fire after House Republicans proposed rolling back key tax credits from the Inflation Reduction Act, particularly those affecting residential solar installations.
- First Solar (FSLR) dropped 7.6%, the biggest loss in the S&P 500.
- Enphase Energy (ENPH) declined 3.2%.
- Broader clean energy names were hit as well:
- AES Corp. (AES), a power generator with diverse renewable assets, slid 4.1%.
Summary
Monday’s session showcased modest gains for U.S. indexes, driven by healthcare strength and selective biotech optimism, even as concerns over the U.S. credit outlook and clean energy policies weighed on sentiment.