U.S. Stock Market Summary – May 6, 2025: S&P 500 Falls Again as Palantir, Drugmakers Slide

? U.S. Stock Market Summary – May 6, 2025: S&P 500 Falls Again as Palantir, Drugmakers Slide

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U.S. stocks fell for the second day on May 6, 2025, with the S&P 500 down 0.8% as Palantir and pharmaceutical stocks declined. Investors await Fed rate decision and tariff updates.

? Key Takeaways

• The S&P 500 fell 0.8% on Tuesday, marking a second straight day of losses as markets awaited the Federal Reserve’s interest rate announcement and clarity on U.S. trade tariffs.

• Palantir Technologies plunged 12% after mixed earnings and valuation concerns.

• Vertex Pharmaceuticals and Moderna tumbled following the pause of a cystic fibrosis trial.

• Constellation Energy soared 10% on strong earnings tied to rising AI-driven electricity demand.

? Market Performance – May 6, 2025

U.S. equities declined again on Tuesday as traders digested corporate earnings, geopolitical trade updates, and anticipated tomorrow’s Federal Reserve policy meeting. The S&P 500 dropped 0.8%, while the Dow Jones Industrial Averagefell 1% and the Nasdaq Composite declined 0.9%.

This marks the second consecutive day of declines following a nine-day winning streak.

? Notable Stock Movers

Palantir Technologies (PLTR) dropped 12% after reporting earnings that met expectations, but failed to impress investors. Despite a 39% surge in quarterly revenue and a raised 2025 outlook, concerns over Palantir’s lofty valuation—up 400% year-over-year—led to the pullback.

Vertex Pharmaceuticals (VRTX) plunged 10%, while Moderna (MRNA) also fell after the two companies paused a cystic fibrosis clinical trial, contributing to a disappointing earnings report for Vertex.

DoorDash (DASH) fell over 7% after releasing earnings early and announcing acquisitions of Deliveroo for nearly $4 billion and SevenRooms for $1.2 billion. Revenue came in below expectations.

On the upside, Constellation Energy (CEG) led the S&P 500 with a 10% gain. The utility firm benefited from booming AI-related electricity consumption, beat revenue estimates, and reaffirmed its 2025 guidance. The company also confirmed its $26.6 billion acquisition of Calpine is on track for year-end completion.

Leidos Holdings (LDOS) gained 4.6% after posting stronger-than-expected results and downplaying potential fallout from reduced U.S. government spending.

Ford Motor (F) rose 2.7% on solid earnings, although it suspended full-year guidance due to tariff uncertainty.

Super Micro Computer (SMCI) gained 2.4% ahead of its earnings report due after the closing bell.

? Other Movers

• Marriott International rose 1.9% on strong Q1 results, despite lowering its full-year room revenue guidance.

• TreeHouse Foods declined 5.8% after issuing weak forward sales guidance and citing consumption slowdowns and product recalls.

? Bonds, Commodities, and Treasury Yields

• 10-Year Treasury Yield: Fell 3.7 basis points to 4.31%

• 2-Year Treasury Yield: Dropped 4.2 basis points to 3.8%

Crude Oil (WTI) climbed 3.4% to $59.09 per barrel, boosted by global supply concerns.

Gold surged 3.2% to $3,428.90 per ounce, and Silver rose 2.9% to $33.42 per ounce, reflecting growing investor demand for safe-haven assets.