The Week That Was, The Week Ahead: Macro & Markets, May 12, 2025
Everything to Know about Macro and Markets
Stocks ended their winning streak, ending the week slightly lower. The Dow Jones Industrial Average (DJIA) declined by 0.16%, the S&P 500 (SPX) fell by 0.47%, and the tech-heavy Nasdaq-100 (NDX) was down by 0.20% for the week.
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A Week of Jitters
Stock indexes started the week lower, with the S&P 500 snapping its nine-day winning streak on Monday as nervous investors took some profits ahead of a headline-heavy week. Energy stocks dragged down the S&P 500 and Dow Jones, registering a sharp decline after OPEC+ agreed to boost production again next month. Sentiment was further hit by news from a market-moving giant, Berkshire Hathaway, after longtime CEO Warren Buffett announced he’d hand the reins to successor Greg Abel at the start of 2026.
Markets extended their slide on Tuesday, continuing to consolidate after a robust run while awaiting the Federal Reserve’s rate decision. But a rebound followed on Wednesday and Thursday, buoyed by both Fed Chair Jerome Powell and President Trump.
The Fed held rates steady on Wednesday, citing increased macroeconomic uncertainty tied to tariffs and signaling a continued “wait and see” approach. While this stance – and the emphasis on “uncertainty” – were widely expected, Powell’s accompanying statement that the economy remains in a “solid position” helped calm some investor concerns and sparked a market rebound. In essence, investors read between the lines: the economy is resilient enough to give the Fed room to maneuver without being rushed into action.
Trade Winds Blow
Markets found further support from reports that the Trump administration intends to rescind Biden-era AI chip curbs – widely criticized for being overly complex and restrictive – and replace them with a streamlined global licensing system. This move gave a particularly nice boost to chip and chip-related stocks.
Meanwhile, optimism grew on news that U.S. and Chinese officials plan to meet in Switzerland for trade talks, reviving hopes for a de-escalation of the tariff tit-for-tat. Thursday brought more tariff-driven enthusiasm, with the announcement of a broad U.S.-U.K. trade agreement – the first since the Trump administration unveiled reciprocal tariffs on April 2. The deal ignited hopes of more agreements to come, amplified by Trump himself urging investors to “go out and buy stocks now,” further fueling market momentum.
Friday’s trading was choppy, with markets swinging around the flatline ahead of the U.S.-China talks. A social media post from President Trump floated a potential 80% tariff on China – down from the current 145%, but this nevertheless caused a brief stumble, as markets had priced in something closer to 60%. Despite the relative optimism about resumed dialogue and tariff flexibility, investors quickly grasped that a swift resolution to U.S.-China trade tensions remains unlikely.
Adding to the long-term uncertainty, reports emerged of a Trump administration list with roughly 20 countries prioritized for early trade negotiations. The list includes key partners like Japan, South Korea, and Vietnam, along with several minor trade contributors – highlighting the bumpy and prolonged path ahead as global trade relations undergo a major reset.
Stocks That Made the News
▣ Alphabet (GOOGL) was the largest decliner among mega-cap stocks last week, dropping nearly 7% after Eddy Cue, Apple’s (AAPL) senior VP of Services, said search volume on Apple was down in April for the first time in 20 years because people are using AI chatbots, and indicated that Apple is considering adding AI providers as search options on Safari. GOOGL recouped some of the losses on Friday after the company said that AI search hasn’t negatively impacted its search business, and that it continues to see overall query growth in Search, including an increase in total queries coming from Apple’s devices and platforms.
▣ Palantir Technologies (PLTR) saw its shares tumble by 12% after its solid earnings and guidance weren’t enough for investors expecting more from the company whose stock has surged by over 50% year-to-date. However, PLTR rebounded later in the week on general enthusiasm over the tech sector, wiping out some of these losses and ending the week down by just over 4%.
▣ CrowdStrike Holdings (CRWD) also had a rough week, dropping by 7% following a report that its top executives are part of a government probe involving a technology distributor, Carahsoft Technology. CrowdStrike is under investigation for booking a $32 million sale to Carahsoft in 2023, despite the fact that the IRS – the intended end customer – never received or agreed to the purchase. A CrowdStrike statement said: “This is old news and the fact remains we stand by the accounting of the transaction.” The investigation by the DOJ and the SEC was first reported in February 2025, resurfacing last week after Bloomberg report revealed that investigators are now focusing on what senior CrowdStrike executives knew about the deal and are examining other company transactions.
▣ Berkshire Hathaway ($BRK.B) shed nearly 5% Warren Buffet, aka “the Oracle of Omaha,” who built Berkshire into the empire it is today, announced he will step down as CEO at the start of 2026, with Greg Abel – long-slated for the role – set to take over.
▣ Eli Lilly & Co (LLY) dropped by more than 10% over the week, with many other healthcare stocks also posting significant declines, after Trump promised a “big announcement next week” regarding regulatory actions aimed at lowering drug prices. According to a 2024 study, U.S. drug prices are nearly three times higher than those in other OECD countries, and the Trump administration intends to address this – potentially delivering a bigger blow to pharma firms than tariffs, which are also expected to be announced soon.
▣ Insulet Corporation (PODD) was last week’s top-performing stock in the S&P 500, surging by over 21% following the company’s announcement of stronger-than-expected quarterly earnings and an upward revision of its full-year revenue outlook.
Upcoming Earnings and Dividend Announcements
The Q1 2025 earnings season is drawing to an end, but some notable earnings releases are scheduled for the next few days. Reports in focus this week are coming from Monday.com (MNDY), CyberArk Software (CYBR), Cisco Systems (CSCO), Walmart (WMT), Applied Materials (AMAT), Take-Two (TTWO), and NICE (NICE).
Ex-dividend dates are coming this week for Apple (AAPL), Paychex (PAYX), Ford Motor (F), Visa (V), Delta Air Lines (DAL), Target (TGT), Microsoft (MSFT), Exxon Mobil (XOM), Eli Lilly & Co (LLY), and other dividend-paying firms.
For additional exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.