CNBC Host Jim Cramer Breaks Down the U.S. Stock Market: Thursday's Top 10 Things to Watch

Taiwan • Business • 05/22 13:49
CNBC Host Jim Cramer Breaks Down the U.S. Stock Market: Thursday's Top 10 Things to Watch

On May 22, 2025, CNBC's "Mad Money" host Jim Cramer highlighted the top ten concerns in the U.S. stock market, including the setback of Trump's tax reform, changes in solar industry tax policies, layoffs at Walmart, Marvell's rating downgrade, Urban Outfitters' impressive earnings, Snowflake's earnings surpassing expectations, doubts about Alphabet's search business, Target's market share decline, VFC Corp's weak forecasts, and TJX's benefit from price advantages. These observations reflect the market's concerns about inflation, interest rates, and technological innovation.

Key Updates

05/24 06:17

Apple's stock price has fallen for eight consecutive days, reducing its market value to the third largest in the world due to the threat of Trump's tariffs, competition in AI, and a weak Chinese market.

Apple Inc. is facing significant market challenges, as its stock price has fallen for eight consecutive days since early May, resulting in a market capitalization loss of over $390 billion, dropping it to the third largest company globally. Former U.S. President Trump has threatened to impose a 25% tariff on iPhones that are not made in the United States. Along with competitive pressure from AI and sluggish sales in the Chinese market, these three pressures are affecting Apple's future strategies and investor confidence.

05/24 02:18

U.S. defense budget expansion exceeds one trillion dollars, sparking a boom in defense stocks: Yuanta Global Aerospace and Defense Technology ETF has risen nearly 25% this year.

The U.S. defense budget has surpassed $1 trillion for the first time, approved on May 22, 2025, with an increase of approximately $150 billion, prompting a swift reaction in global markets. Taiwan's Yuanta Global Aerospace & Defense Technology ETF (00965) was affected, with its stock price reaching a new high of 17.85 USD on May 23, representing a nearly 25% increase since the start of the year. The ETF's holdings primarily consist of major U.S. and European defense contractors, directly benefiting from the budget expansion. Capital flows show active positioning by institutional investors, and international asset management firms have also launched defense-themed ETFs, indicating a growing interest in investing in the defense sector.

05/23 01:47

U.S. stock market futures remained unchanged due to the impact of rising U.S. Treasury yields on market sentiment. Updated on May 23, 2025.

On May 23, 2025, U.S. stock market futures were nearly flat as investors absorbed the surge in long-term U.S. Treasury yields. The 30-year Treasury yield reached 5.16%, and the 10-year yield surpassed 4.6%, marking their highest levels since October 2023. This increase is linked to the U.S. Congress passing tax reform and military spending bills under the Trump administration, heightening concerns about the expanding fiscal deficit, resulting in falling bond prices, rising yields, and a dampening effect on stock market performance.

05/22 23:18

BlackRock and Fidelity suggest gradual investments in U.S. stocks to navigate Trump's uncertain tariff policies.

In the spring of 2025, the US stock market showed resilience as corporate earnings exceeded expectations, but the new tariff policies of the Trump administration increased uncertainty in the global economy. BlackRock and Fidelity recommended a diversified market allocation and restructuring of supply chains to address risks. Profits for S&P 500 companies were strong, and tech stocks rebounded. The tariff policies led to supply chain restructuring and adjustments in capital expenditures, leading to increased inflation and demand for hedging. Investors should adopt asset allocation strategies that focus on defense, income, and growth while focusing on undervalued markets and industries with low policy risk.

05/22 22:48

The U.S. House of Representatives passes Trump's "Big and Beautiful" Act, with the U.S. stock market showing mixed results at the close on May 22.

On May 22, the U.S. House of Representatives passed President Trump's "big and beautiful" tax reform and spending plan with 215 votes in favor and 214 against. The plan could increase the U.S. national debt by about $2.4 trillion over the next decade. On the same day, the three major U.S. stock indices had mixed performances, with the Nasdaq index rising by 53.09 points and the Philadelphia Semiconductor Index falling by 27.24 points. The market's response to the bill's fiscal impact was varied, as investors continued to assess its potential effects, resulting in heightened market volatility.

05/22 18:18

The economic slowdown in the Eurozone and the UK has sparked market concerns, leading to all three major European stock markets closing in the red on May 22nd, 2025.

On May 22, 2025, the major European stock markets fell as investors worried about the economic slowdown in the Eurozone and the UK. The Eurozone's PMI for May dropped to 49.5, marking the first contraction in the services sector since November 2024. The FTSE 100 in London, the DAX in Frankfurt, and the CAC 40 in Paris fell by 0.54%, 0.51%, and 0.58%, respectively. The market was influenced by weak economic data, a worsening U.S. fiscal outlook, and global bond market volatility, resulting in cautious investor sentiment.

05/22 13:49

CNBC Host Jim Cramer Breaks Down the U.S. Stock Market: Thursday's Top 10 Things to Watch

On May 22, 2025, CNBC's "Mad Money" host Jim Cramer highlighted the top ten concerns in the U.S. stock market, including the setback of Trump's tax reform, changes in solar industry tax policies, layoffs at Walmart, Marvell's rating downgrade, Urban Outfitters' impressive earnings, Snowflake's earnings surpassing expectations, doubts about Alphabet's search business, Target's market share decline, VFC Corp's weak forecasts, and TJX's benefit from price advantages. These observations reflect the market's concerns about inflation, interest rates, and technological innovation.

05/22 10:19

The surge in U.S. Treasury yields triggers an asset sell-off, while stock index futures rebound during early trading on May 22, 2025.

On May 22, 2025, the yields on the U.S. 20-year and 30-year Treasury bonds exceeded 5%, raising concerns about the U.S. fiscal health and putting pressure on the stock and bond markets, as well as the dollar. The Dow Jones Industrial Average dropped more than 800 points the day before, but stock index futures showed slight stabilization in early Thursday trading. The increase in yields is linked to weak demand at the 20-year Treasury auction, the Trump administration's tax reform policies, and the expanding budget deficit, undermining market confidence in U.S. assets.

05/22 06:51

May 22, 2025, U.S. Stock Futures Market: Dow Jones down, S&P 500 up, Nasdaq 100 fluctuating (in Taipei Time)

On May 22, 2025 (Taipei time), the futures of the three major U.S. stock indices were mixed. Dow Jones Industrial Average futures stood at 41,951 points, up 4 points (+0.01%); S&P 500 futures stood at 5,870 points, up 8.75 points (+0.15%); Nasdaq 100 futures stood at 21,197.25 points, up 40.5 points (+0.19%). According to MoneyDJ data at 1:31 PM, the market stabilized in the afternoon, with the Nasdaq leading the gains. The previous day's spot market had declined across the board due to factors like the fiscal deficit, causing volatility in the futures market's early trading session.

05/22 02:50

May 22, 2025 U.S. Stock Futures Market: Dow slightly declined, S&P and Nasdaq rose slightly

On May 22, 2025, at 08:35 Taipei time, the U.S. stock futures market showed a mixed performance. Dow Jones Industrial Average futures dropped 17 points to 41,930, down 0.04%; S&P 500 futures increased by 2.25 points to 5,863.5, up 0.04%; Nasdaq 100 futures edged up 2 points to 21,158.75, up 0.01%. The previous trading day saw major U.S. stock indices generally closing lower, and the slight fluctuations in the futures market reflect investors' cautious stance on the market outlook.

1. Trump Tax Reform Bill Setback and Bond Yields Surge

Cramer noted that the "big and bold" tax reform bill proposed by former President Trump faced resistance in the Senate after passing the House, leading to a loss of market confidence. Meanwhile, the yield on the 30-year U.S. Treasury bond rose to 5.131%, a new high since October 2022, and the 10-year yield also climbed to 4.613%. This change put pressure on the stock market, with futures slightly down in early Thursday trading, continuing Wednesday's sell-off trend.

2. Solar Industry Hit by Tax Policy

Cramer pointed out that the bill passed by the House eliminated tax credits for the solar industry, causing solar stocks to plummet. He described this as a "significant blow" to the industry. This policy change also reflects market uncertainty regarding support for green energy policies.

3. Walmart Lays Off 1,500, Is AI Saving Costs?

According to The Wall Street Journal, Walmart plans to cut 1,500 corporate positions. Although a company spokesperson emphasized that this is unrelated to tariffs, Cramer questioned whether this is an initial result of cost savings from AI implementation. This move may signal structural changes in the retail industry amid digital transformation.

4. Marvell Downgraded, Broadcom May Capture Market

Melius Research downgraded semiconductor company Marvell (NASDAQ: MRVL), citing that Broadcom (NASDAQ: AVGO) might capture its market share in the custom AI chip market. Marvell provides chips to Amazon and Microsoft, and the downgrade occurred before its May 29 earnings report and June 17 AI chip network seminar, highlighting the significance of the timing.

5. Urban Outfitters' Strong Earnings, Stock Soars

Apparel retailer Urban Outfitters (NASDAQ: URBN) reported better-than-expected earnings, with strong performance from its brands Nuuly, Free People, and the main brand. The company effectively managed the impact of tariffs, although it may need to raise prices in the future. Morgan Stanley raised its price target from $62 to $77. On Wednesday, the stock surged over 9%, closing at around $69.6.

6. Snowflake Exceeds Earnings Expectations, Multiple Brokerages Raise Price Targets

Cloud data platform Snowflake (NYSE: SNOW) reported adjusted earnings per share of $0.24, beating the market expectation of $0.21. Multiple brokerages immediately raised their price targets: Citizens JMP from $201 to $245, Bernstein from $171 to $191, and Piper Sandler from $175 to $215. Cramer featured an exclusive interview with CEO Sridhar Ramaswamy on "Mad Money."

7. Alphabet's Search Business in Question, Analysts Remain Cautious

Research firm MoffettNathanson expressed caution about Alphabet's (NASDAQ: GOOGL) performance, suggesting its core search business might be weak. Cramer agreed and was surprised by the stock's nearly 3% rise on Wednesday. This reflects that market optimism for big tech stocks may be disconnected from fundamentals.

8. Target's Market Share Decline, Multiple Brokerages Downgrade Ratings

Citibank lowered Target's (NYSE: TGT) price target from $97 to $94, noting that the company has lost market share in more than half of its 35 categories. Bernstein and Baird also lowered their price targets to $80 and $100, respectively. Nonetheless, Cramer noted that Target has a strong balance sheet but needs to take steps to reverse the decline.

9. VFC Corp's Weak Forecast, Recovery Still a Long Way Off

VFC Corp (NYSE: VFC), which owns brands like The North Face, Vans, and Timberland, had its price target lowered by Barclays from $19 to $15. Despite some progress in the earnings report, the first-quarter forecast was weak, and analysts believe there is no clear sign of a turnaround yet.

10. TJX Benefits from Price Advantage, Morgan Stanley Raises Price Target

Discount retailer TJX Companies (NYSE: TJX) saw strong sales in May due to attractive product pricing. Morgan Stanley raised its price target from $133 to $140. Cramer noted that this might be one of the institution's most accurate recent predictions. Despite a stock decline on Wednesday, the company reaffirmed its forecast, demonstrating resilience in the face of tariff challenges.

References

People Also Ask...

faq

Does this article mention any policies that might affect our local solar industry?

faq

What is the immediate impact on the stock market from the setback of the tax reform bill that Cramer mentioned?

faq

How will the setback of the tax reform bill, as mentioned by Cramer, affect the U.S. stock market in the long run?