Day Traders Diary

5/21/25

The major averages took a hit today, pressured by a sharp spike higher in Treasury yields as traders grew worried that a new U.S. budget bill would put even more stress on the country's already large deficit. The Dow Jones Industrial Average lost 816 points, or 1.91% to 41,860. The S&P 500 shed 1.61% to 5,844. The Nasdaq Composite slid 1.41% to 18,872.

The bond market took center stage this afternoon following a poor auction at 1pm, pushing yields back toward levels that pressured the markets in the past. The 30-year Treasury bond rose 12 basis points to 5.09%, the highest level going back to October 2023. The benchmark 10-year Treasury rose 11basis points to 4.59%.

Retail earnings were not great today. Target shares fell 5% after cutting full-year sales outlook, with executives citing tariff uncertainty. VF Corp and TJX were lower on earnings as well. Canada Goose was a stand out to the upside.

 In the commodity space, oil was lower still trading in the low $60 a barrel range. Gold was up a percent while bitcoin rose over a percent touching a new intra day high.