Stocks Plunge: Is It Time to Panic or Just a Bad Hair Day? 😱💸

On a rather gloomy Wednesday, the U.S. stock market decided to take a little dip, much like a clumsy swimmer who forgot how to float. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite opened lower, all thanks to the delightful drama unfolding between China and the United States over chips—no, not the tasty kind you munch on while watching a movie, but the silicon ones that keep our gadgets running.

As the day began, Wall Street wore a pensive expression, akin to a philosopher contemplating the meaning of life while staring at a blank wall. The Dow Jones Industrial Average opened a staggering 300 points lower, down 0.7%, while the S&P 500 slipped 0.53%. The Nasdaq, not wanting to be left out of the pity party, also traded in the red, opening 0.57% lower. It seems the only thing rising today was the collective anxiety of investors.

These declines for the Dow, Nasdaq, and S&P 500, which had just snapped its six-day winning streak (poor thing), came as investors reacted to the latest developments in the U.S.-China trade relations. It’s like watching a soap opera, but with more spreadsheets and fewer dramatic pauses.

Interestingly, stocks had rallied when the two economic giants hinted at a trade truce, but alas, the joy was short-lived. Concerns about the U.S. deficit, with Moody’s downgrade looming like a dark cloud, combined with general jitters on the macroeconomic front, have dampened the bullish momentum. President Donald Trump’s tax bill and the fresh squabbles over chips have added to the mix, with shares of chip maker Nvidia down 0.6%. It’s a real chip off the old block, isn’t it?

With tariffs back on the table, U.S. Treasury yields decided to rise, perhaps in a bid to join the party. The 30-year Treasury yield climbed back above the psychological level of 5%, while the 10-year yield jumped to above 4.5%. It’s all very thrilling, like a rollercoaster ride, but without the safety harness.

Despite the elevated risk and uncertainty, Derek Chollet, head of JPMorgan’s Geopolitics Center, told CNBC that there’s still a glimmer of hope for investors amidst all this downside action. Who knew that amidst chaos, there could be opportunity? It’s like finding a dollar bill in an old coat pocket!

“We are at a time of tremendous risk and uncertainty,” says Derek Chollet, head of JPMorganChase’s Geopolitics Center. “But amidst all the downsides, I still do think there are great opportunities out there.”

— Squawk Box (@SquawkCNBC) May 21, 2025

Meanwhile, sentiment across risk asset markets saw Bitcoin (BTC) shedding some of its gains after breaking above $108,000 during the European trading session. Gold, on the other hand, was up 0.7% to $3,307, proving once again that shiny things tend to do well in uncertain times.

Read More

• Vampire’s Fall 2 redeem codes and how to use them (June 2025)

• GEN vs AL was another extremely close LoL match at MSI 2025

• Cookie Run: Kingdom Marshmallow Bunny Cookie Guide: How to unlock, Best Toppings, and more

• Does Jurassic World Rebirth have a post-credit scene?

• T1 has a difficult match vs CFO, still advance to the semis of LoL MSI 2025

• LCP teams, CFO and GAM, bring the underdog power to MSI 2025

• Scarlett Johansson becomes highest-grossing lead actor EVER after Jurassic Park Rebirth opens with $318M

• JOOPITER’s sacai x SEVENTEEN Auction Sets Record for Highest-Selling LABUBU

• WEBZEN’s MU: Pocket Knights offers a cute spin on the legendary MU series, set to launch in the second half of 2025

• Blackpink LISA is the new PlayStation ambassador

2025-05-21 17:35