The Knowing – 📊 Daily Market Recap + Tomorrow’s Edge

📊 Market Recap

U.S. equities experienced a pullback on Wednesday, May 28, 2025, as investors digested recent developments in trade policy and corporate earnings.

• S&P 500 (SPX): Decreased by 32.99 points (-0.56%) to close at 5,888.55.

• Nasdaq Composite (IXIC): Fell by 98.23 points (-0.51%) to 19,100.94.

• Dow Jones Industrial Average (DIA): Dropped by 244.95 points (-0.58%) to 42,098.70.

• Russell 2000 (IWM): Declined by 15.30 points (-0.73%) to 2,075.10. WSJ

The market's retreat followed a strong rally earlier in the week, with investors reassessing positions amid evolving trade dynamics and earnings reports. Investopedia

📰 News That Moved the Market

• Tariff Ruling: The U.S. trade court blocked President Trump's proposed global tariffs, easing trade tensions and impacting market sentiment. The U.S. Sun

• Nvidia Earnings: Nvidia reported Q1 FY2026 revenue of $44.1 billion, a 12% increase from the previous quarter, surpassing analyst expectations and boosting tech sector confidence.

• Geopolitical Developments: Former President Trump's tour of Gulf countries highlighted strategic discussions on energy and AI, influencing global market considerations. BloombergNVIDIA NewsroomCGEP

🗓 What’s Coming Tomorrow

Economic Data Releases:

• Gross Domestic Product (Q1 2025, Second Estimate):

  Scheduled for release at 8:30 AM ET by the U.S. Bureau of Economic Analysis. Advisor Perspectives+2Bureau of Economic Analysis+2Investing.com+2

• Initial Jobless Claims:

  Scheduled for release at 8:30 AM ET.

• Pending Home Sales (April 2025):

  Scheduled for release at 10:00 AM ET by the National Association of Realtors. National Association of REALTORS+1National Association of REALTORS+1

Earnings Reports:

• Costco Wholesale Corporation (COST):

  Scheduled to report fiscal Q3 2025 earnings after the market closes.

📌 Simple Seasonal Tip

As we progress through the "Super Six" period—the final three trading days of May and the first three of June—historical patterns suggest increased market activity due to institutional portfolio adjustments. This period often brings heightened volatility and potential opportunities for traders attuned to short-term market movements.

📈 Options Insight (Not Financial Advice)

The recent market pullback presents potential opportunities for options traders. Given the strong earnings report from Nvidia and the easing of trade tensions, bullish sentiment may persist in the tech sector. Traders might consider long call strategies on tech-focused ETFs or stocks showing resilience. However, it's crucial to monitor support levels and set appropriate risk management measures.

👀 What to Watch Tomorrow

• Tech Sector Momentum: Following Nvidia's earnings beat, observe if other tech stocks follow suit, potentially indicating a broader sector rally.

• Economic Indicators: GDP and jobless claims data will provide insights into the economic recovery's strength, influencing market direction.

• Small-Cap Performance: Monitor the Russell 2000 for signs of divergence or confirmation of broader market trends, especially in response to economic.

🚀 Tools We Use

• TradingView our preferred platform for real-time charts and technical analysis.