Podcast
Next Day Prep #33: Bond Market Surge Sparks Stock Selloff – Wednesday 5/21/2025
Key takeaways
- Rising yields, caution, and consolidation affecting major indices. Traders advised to watch support/resistance levels, sector rotation dynamics, and seize opportunities with disciplined risk management.
- Tomorrow’s focus: Initial Jobless Claims, S&P Global PMIs, existing Home sales, and earnings from Analog Devices, BJ’s, Ralph Lauren, Autodesk, and Intuit.
Next Day Prep: Bond Market Surge Sparks Stock Selloff
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. The market faced challenges today as yields surged, leading to caution and consolidation across major indices.
Overnight Headlines
- UK CPI higher than expected for April, driving inflation concerns
- Reports on raising SALT deduction cap and Medicaid cuts adding to deficit worries
- Weak $16 billion 20-year bond auction fueling yield surge
Economic Announcements
Today’s MBA Mortgage Applications Index fell 5.1% week-over-week amid rising rates.
Earnings Highlights
- Palo Alto Networks (PANW) posted solid earnings with slight soft spots, stock down around 7%
- Target (TGT), Baidu (BIDU), Lowe’s (LOW), TJX (TJX), Medtronic (MDT) had mixed earnings performances
Top Movers
- Winners: Alphabet (GOOG) up nearly 3%, highlighting Communication Services
- Losers: UnitedHealth (UNH) down almost 6% on downgrade and negative report
Quick Trade Ideas
Consider long entries in tech and healthcare sectors for selective plays.