Market Overview – May 7, 2025
U.S. stocks closed higher on Wednesday in a volatile session, snapping a two-day losing streak. The S&P 500 climbed 0.4%, supported by investor reactions to the Federal Reserve’s decision to hold interest rates steady and fresh trade remarks from President Donald Trump.The Dow Jones Industrial Average rose by 0.7%, while the Nasdaq Composite edged up 0.3%. Most sectors ended in positive territory, with consumer discretionary and technology leading the gains.
The Federal Reserve kept the benchmark interest rate at 4.25% to 4.50%, marking its third consecutive hold. In his post-decision remarks, Fed Chair Jerome Powell emphasized caution, while President Trump doubled down on his hardline stance, saying he would not reduce the 145% tariffs on China despite upcoming trade discussions between both nations.
Top Gainers
Charles River Laboratories was the day’s biggest gainer in the S&P 500, with shares surging by 19%. The medical testing firm announced changes to its board and launched a strategic review of its operations, prompted by pressure from activist investor Elliott Investment Management.Walt Disney Co. soared nearly 11% after reporting better-than-expected quarterly earnings and raising its full-year profit forecast. The company noted unexpected growth in its Disney+ subscriber base, despite previously projecting a slight decline. Disney also announced plans for a new theme park, adding to investor optimism.
Rockwell Automation gained 12% following strong quarterly results and an upward revision to its full-year earnings guidance, making it one of the day’s top performers.
Nvidia rose 3.1% after President Trump stated he would soon announce whether the U.S. chip export restrictions to Gulf nations would be relaxed, fueling investor hopes for increased international demand.
Top Losers
International Flavors & Fragrances fell by 7% after posting a year-over-year decline in net sales, disappointing analysts and dragging the stock lower.DoorDash declined for the second straight session, following a revenue miss in its first-quarter report. The delivery giant continued its downward momentum amid concerns over slowing growth.
Dayforce dropped more than 6% after its quarterly profit and forward-looking guidance came in weaker than expected, despite a solid revenue beat. The company also reported a 5% increase in its customer base, which came in below analyst projections.
Alphabet (Google) shares slipped on concerns that its AI-driven search products could begin to cannibalize usage and demand for its core traditional search engine—a development that may challenge the company’s future ad revenue model.
Commodities & Treasury Yields
- WTI Crude Oil: down 1.9% to $57.98 per barrel
- Gold: down 1.4% to $3,376.50 per ounce
- Silver: down 2.7% to $32.48 per ounce
- 10-Year Treasury Yield: down 3 basis points to 4.28%
- 2-Year Treasury Yield: unchanged at 3.79%