Market Monitor News May 29 (Abercrombie & Fitch, Box UP - Okta, Trump Media DOWN)

Wall Street Slips as Investors Brace for Nvidia Earnings and Economic Uncertainty

The major US stock indexes closed lower on May 28, 2025, as recession worries, cautious Fed minutes, and anticipation of Nvidia’s quarterly results weighed on market sentiment.

Major Indexes Dip Amid Growing Caution

All three major indexes declined:

• Dow Jones: -0.6%
• S&P 500: -0.6%
• Nasdaq: -0.5%

Investors remained on edge ahead of macro data releases and interpreted the latest Federal Reserve minutes as a signal to brace for potential economic headwinds.

Fed Minutes Highlight Recession Risks

Minutes from the Fed’s May 6–7 meeting revealed that central bank officials see a recession as a real possibility. The committee acknowledged heightened uncertainty in the economic outlook, much of it linked to the aggressive trade policies of President Donald Trump.

Policymakers agreed on a cautious stance, especially with inflation still proving stubborn.

Nvidia Stuns with Blockbuster Quarter

Nvidia (NVDA | +4.89% after hours) delivered yet another blowout quarter, surpassing expectations and raising its revenue guidance for the current quarter, even while navigating tighter US export restrictions to China.

• Q1 Revenue: $44.06 billion (+70% YoY)

• Earnings Per Share (EPS): $0.96 (vs. $0.93 expected)

• Gross Margin: 71.3%

For Q2, Nvidia projects $45 billion in revenue, shrugging off an $8 billion drag from lost Chinese business. CFO Colette Kress expects margins to move toward 75% as production of the new Blackwell AI chip scales up.

CEO Jensen Huang emphasized a growing customer base beyond major cloud hyperscalers like Amazon (AMZN | -0.63%), Microsoft (MSFT | -0.72%), and Alphabet (GOOGL | -0.34%).

Nvidia’s AI solutions are now in demand across a broad range of industries, thanks to the rise of AI agents, software capable of performing autonomous tasks, which Huang called a "game changer" for enterprise adoption.

Retail Sector Mixed: Abercrombie Shines, Macy’s Slips

Abercrombie & Fitch (ANF | +14.67%) soared after it raised its full-year sales forecast to 3–6%, up from 3–5%, while reiterating its strategy to absorb rising tariffs without broad price hikes.

Hollister, its youth-focused brand, led the upside with a 23% surge in sales, even as overall same-store sales dropped 10%.

Macy’s (M | -0.33%) dipped slightly after reporting a smaller-than-expected 2% decline in Q1 comparable sales. The company lowered its full-year EBITDA margin outlook to 7.4–7.9%, citing tariff pressure and softer US consumer spending.

CEO Tony Spring noted that high-tariff inventory from China would likely compress margins further in Q2, although limited price increases are still planned.

Dick’s Sporting Goods (DKS | +1.66%) recovered some recent losses after executives defended their planned acquisition of Foot Locker, which has been under investor scrutiny due to the target’s recent struggles.

Chairman Ed Stack highlighted expected $125 million in cost synergies and stressed the deal was made with a decades-long strategic view, not just for the next quarter.

Trump Tariffs Ruled Unlawful — Legal Fight Escalates

In a major legal blow, a federal court ruled that President Donald Trump’s sweeping import tariffs violated US law. The Court of International Trade found Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA), which is typically reserved for threats from hostile nations.

The White House vowed to appeal the ruling, potentially escalating the matter to the Supreme Court. For now, many of the tariffs remain paused or reduced, creating continued uncertainty for import-heavy businesses.

More Movers: Okta, Box, Trump Media

Okta (OKTA | -16.16%) tanked despite beating earnings, after maintaining cautious full-year guidance that disappointed the Street.

Box (BOX | +17.23%) jumped after a strong Q1 and upbeat forecasts for Q2 and FY26.

Trump Media & Technology Group (DJT | -6.77%) extended losses after revealing a $2.5 billion equity raise for crypto investments, diluting the Trump family’s majority stake for the first time.

Bonds, Oil, and Currency Update

• 10-Year Treasury Yield: +4 bps → 4.482%
• 2-Year Treasury Yield: +4 bps → 3.994%
• Crude Oil (July): +1.6% → $61.84/barrel
• EUR/USD: 1.1291

On Deck: Key Data Coming Thursday

Traders are looking ahead to:

• Q2 GDP growth estimates (pre-market)
• Pending Home Sales
• Weekly Oil Inventory Report

These figures could provide more insight into the strength (or weakness) of the US economy heading into summer.

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Next to read: Market Trends & Breadth, May 29