empty
05.06.2025 10:40 AM
Stock Market on May 5th: S&P 500 and NASDAQ Slowed Down Growth

At the end of the last regular session, U.S. stock indices closed with modest gains. The S&P 500 rose by 0.01%, and the Nasdaq 100 added 0.32%. The Dow Jones Industrial Average fell by 0.22%.

The stock market is struggling to find direction and is showing modest movements as investors avoid making long-term risky bets ahead of the U.S. employment data, which is due tomorrow.

This image is no longer relevant

U.S. stock index futures fell by 0.1%, while European stock futures remained flat. Asian indices showed little change. Japanese government bonds rose after a 30-year bond auction turned out better than investors had feared. U.S. Treasury yields stabilized. On Wednesday, bonds rallied across the curve as data showed a slowdown in U.S. services sector activity and private-sector hiring.

Investors latched onto signs of economic weakening, which boosted the appeal of safe-haven assets and strengthened expectations for a less aggressive Federal Reserve monetary policy. This reflects growing confidence that the Fed may soon return to a policy of rate cuts to avoid a recession.

The published services sector business activity index came in significantly below forecasts, indicating a substantial slowdown in growth in this key sector. At the same time, the ADP private-sector employment report showed a smaller-than-expected increase in jobs, adding to concerns about labor market weakening.

Clearly, investors are staying on the sidelines, awaiting U.S. data and the European Central Bank's rate decision. U.S. economic activity has slowed slightly in recent weeks, suggesting that trade policies and uncertainties are taking a toll on the economy.

"Markets will likely view this through the lens of disappointment in real growth," said Florian Ielpo of Lombard Odier Investment Managers. "While this is good news for the U.S. economy in terms of potential rate cuts, the improvements already priced into equities and credit spreads could be challenged by this series of weaker readings."

Swap traders, who predict changes in Fed rates, have priced in higher odds of two quarter-point cuts by the end of the year, in October and December. The probability of a rate cut in September rose to over 90% from about 82%.

Meanwhile, a private survey showed that China's services sector activity grew at a faster pace in May, signaling stabilization in consumer demand, even as higher U.S. tariffs threaten export demand.

In Corporate News:

Shares of Japanese automaker Suzuki Motor Corp. declined after Nikkei reported that the company halted production of the Swift model due to shortages of rare earth elements. Mercedes-Benz Group AG and BMW AG are in talks with suppliers to prevent a shortage of components containing rare materials, with the former reportedly discussing stockpiling. Meanwhile, Ford Motor Co. said that certain parts require more time to clear China's approval process for rare earth metal exports.

This image is no longer relevant

As for the S&P 500 Technical Picture:

Today, the main task for buyers will be to break through the nearest resistance at $5975. This would support further growth and open the way for a move to a new level at $5986. An equally important task for the bulls will be maintaining control above $6000, which would strengthen buyer positions. In the event of a downward move amid declining risk appetite, buyers must assert themselves around $5962. A break below this level would quickly push the instrument down to $5946 and open the way to $5933.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Update on US stock market on July 3. SP500 and NASDAQ update their highs

The S&P 500 rose by 0.47%, while the Nasdaq 100 gained 0.94%. The industrial Dow Jones, however, slipped by 0.02%. Asian stock indices posted modest gains ahead of the upcoming

Jakub Novak 13:15 2025-07-03 UTC+2

US stock market: S&P 500 hits new record high

S&P500 Snapshot of major US stock indices on Wednesday: * Dow: +0.0% * NASDAQ: +0.9% * S&P 500: +0.5% * S&P 500 closed at 6,227, trading within a range

Jozef Kovach 13:15 2025-07-03 UTC+2

US equities: bulls steady, broader market leads

S&P 500 Overview on July 2 US market: bulls hold their ground, broader market leads The main US indices on Tuesday: Dow +0.9%, NASDAQ -0.8%, S&P 500 -0.1%. S&P

Jozef Kovach 13:04 2025-07-02 UTC+2

Update on US stock market on July 2. SP500 and NASDAQ enjoy buoyant demand

At the close of trading yesterday, US stock indices ended the day mixed. The S&P 500 declined by 0.11%, while the Nasdaq 100 fell by 0.82%. In contrast

Jakub Novak 12:48 2025-07-02 UTC+2

US market holds near highs

S&P 500 Overview on July 1 US market pauses at highs Major US indices on Monday: Dow +0.6%, NASDAQ +0.5%, S&P 500 +0.5%, S&P 500: 6,204, trading range: 5,700–6,300

Jozef Kovach 11:53 2025-07-01 UTC+2

Update on US stock market on July 2. SP500 and NASDAQ going on with steady growth

At the end of yesterday's trading, US stock indices closed higher. The S&P 500 rose by 0.52%, while the Nasdaq 100 gained 0.47%. The Dow Jones Industrial Average strengthened

Jakub Novak 09:52 2025-07-01 UTC+2

Update on US stock market on June 30. SP500 notches up new peak at 6,200. Inflation reports indicate stagflation

S&P500 The US stock market is ahead of a week of big news. The S&P 500 is eyeing 6,200 Snapshot of major US stock indices on Friday: Dow +1%, NASDAQ

Jozef Kovach 11:17 2025-06-30 UTC+2

Update on US stock market on June 27. SP500 and NASDAQ reach new highs

The S&P 500 rose by 0.80%, while the Nasdaq 100 added 0.97%. The Dow Jones Industrial Average climbed by 0.84%. Stocks gained amid talks that the US is getting closer

Jakub Novak 11:58 2025-06-27 UTC+2

Nvidia Shares Reach All-Time High

Yesterday, the NASDAQ technology index closed the day in positive territory, thanks largely to the rally in Nvidia Corp. shares, which reached a historic high. The leading producer

Jakub Novak 11:06 2025-06-26 UTC+2

The Stock Market Is Approaching Dangerous Levels

The wave pattern on the 24-hour chart for the #SPX instrument appears generally clear. At this point, the formation of an upward trend segment is presumably complete. In my view

Chin Zhao 12:35 2025-06-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.