CNBC personality Jim Cramer calls out the week's top ten stock market events and five must-know things before Monday's market opens.
On May 19, 2025, Moody's downgraded the United States' sovereign credit rating, leading to a drop in U.S. stock futures, a rise in long-term bond yields, and a withdrawal of funds from risk assets. CNBC host Jim Cramer listed the top ten stock market events for the week, including corporate earnings reports, the impact of the downgrade, and developments in AI technology. The five key points to watch before Monday's market opening provide context, including Moody's downgrade, last week's stock market rebound, Nvidia's new technology, progress on the congressional budget bill, and the tariff dispute involving Walmart and Trump.
Key Updates
05/19 13:47
CNBC personality Jim Cramer calls out the week's top ten stock market events and five must-know things before Monday's market opens.
On May 19, 2025, Moody's downgraded the United States' sovereign credit rating, leading to a drop in U.S. stock futures, a rise in long-term bond yields, and a withdrawal of funds from risk assets. CNBC host Jim Cramer listed the top ten stock market events for the week, including corporate earnings reports, the impact of the downgrade, and developments in AI technology. The five key points to watch before Monday's market opening provide context, including Moody's downgrade, last week's stock market rebound, Nvidia's new technology, progress on the congressional budget bill, and the tariff dispute involving Walmart and Trump.
Jim Cramer's Highlighted Top Ten Stock Market Events
1. Rising Treasury Yields Suppress the Stock Market
Jim Cramer pointed out that the 30-year U.S. Treasury yield surpassed 5%, and the 10-year yield also rose above 4.5%, a direct reaction to Moody's downgrade of the U.S. credit rating. This change led to a capital outflow from the stock market, with the S&P 500 expected to drop by about 1%.
2. Historical Review of Credit Rating Downgrades
Cramer reviewed the market reactions to the last two major credit rating downgrades of the U.S.: In 2011 and 2023, after S&P downgraded the U.S. rating to AA+, the S&P 500 plummeted 6.66% in a single day; in 2023, after Fitch's downgrade, the market fell 1.38%. Moody's recent downgrade may trigger similar market volatility.
3. Capital Shifts to European Markets
Cramer noted that U.S. dollar assets faced a sell-off, with capital shifting to European markets like Germany and Spain, which have shown strong performance this year, attracting significant capital inflows.
4. Trump Criticizes Walmart
Former President Trump criticized Walmart over the weekend, accusing the company of passing tariff costs onto consumers. He stated that Walmart should "swallow the tariffs" instead of raising prices. This clash between politics and business might put pressure on retail stocks.
5. Nvidia Unveils NVLink Fusion Technology
At the Computex event in Taiwan, Nvidia unveiled its next-generation network connectivity technology, "NVLink Fusion," which allows its AI chips to integrate with data center processors from other manufacturers, expanding its market penetration. This technology is expected to further solidify Nvidia's leadership in the AI infrastructure sector.
6. JPMorgan Downgrades Netflix Rating
JPMorgan downgraded Netflix's rating from "buy" to "neutral," citing that the recent stock price surge has balanced the risk-reward ratio. Nonetheless, the firm remains positive about Netflix's long-term prospects.
7. Reddit Downgraded by Wells Fargo
Reddit's stock fell over 6% in early trading on Monday after Wells Fargo downgraded its rating from "buy" to "hold" and significantly lowered the target price from $168 to $115, citing user attrition trends as a potential long-term issue.
8. Short-term Rating Changes for Home Depot and Lowe’s
Evercore ISI added Home Depot to its "short-term buy list" while placing Lowe’s on the "short-term sell list." Both companies are set to release earnings reports this week, with Home Depot on Tuesday and Lowe’s on Wednesday.
9. TJX Companies Earnings and Target Price Increase
TJX Companies will release its earnings report before the market opens on Wednesday. JPMorgan raised its target price from $127 to $130 and maintained a "buy" rating. The stock is currently trading at $133, above the target price.
10. UnitedHealth Group Downgraded but Executives Buy Shares
TD Cowen downgraded UnitedHealth Group's rating from "buy" to "hold," but company executives have recently made significant stock purchases. CEO Stephen Hemsley bought $25 million worth of shares, and CFO John Rex purchased $5 million, showing internal confidence in the company's future.
Five Things Investors Should Know Before Monday's Opening
1. Moody's Downgrades U.S. Credit Rating, Market Under Pressure
Moody's downgrade of the U.S. sovereign credit rating has shaken up the market. U.S. stock futures fell across the board on Monday, with Nasdaq futures down 1.6%, S&P 500 futures down 1.2%, and Dow futures down 0.7%. Meanwhile, U.S. Treasury yields surged, indicating declining confidence in risk assets.
2. Strong Stock Market Rebound Last Week
Even though this week started off slow, U.S. stocks performed well last week. The S&P 500 rose 5.3%, the Dow Jones Industrial Average increased 3.4%, and the tech-heavy Nasdaq surged 7.2%. Nvidia's stock rose about 16%, Meta increased 8%, and Apple and Microsoft rose 6% and 3%, respectively.
3. Nvidia Unveils Multiple AI Technologies at Computex
Nvidia CEO Jensen Huang unveiled several new products and technologies at the Computex event in Taiwan, including NVLink Fusion, which allows customers to integrate non-Nvidia CPUs and GPUs with its products to create semi-custom AI infrastructure. This development further solidifies Nvidia's dominance in the AI sector.
4. Slow Progress on Congressional Budget Bill
The House Budget Committee passed President Trump's domestic policy bill by a party-line vote of 17-16 on Sunday night, but it still requires amendments to pass the full House. The bill is expected to face greater resistance in the Senate due to internal Republican disagreements over its content.
5. Escalating Tariff Dispute Between Walmart and Trump
Walmart CFO John David Rainey stated last week that rising supply chain costs would force the company to raise prices. Trump responded on Truth Social, urging Walmart and China to "swallow the tariffs" and not pass the costs onto consumers. This dispute might affect retailers' stock prices and brand image.
