Both the S&P 500 (SPX) and Nasdaq 100 (NDX) ended Wednesday in the red despite muted price action throughout much of the day. At the same time, fireworks are sure to fly once Nvidia (NVDA) reports its first quarter earnings.
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A Reuters poll update showed a median year-end S&P 500 price prediction of $5,900, down by 9.2% from $6,500 in February. That’s about where the market is trading at the moment, implying no additional upside for 2025. The poll surveyed 51 investment professionals between May 15 and 28. Concerns over tariffs, the recent Moody’s (MCO) U.S. credit downgrade, and the U.S.’ debt pile factored into the reduction.
In terms of trade negotiations, EU trade chief Maroš Šefčovič will reportedly meet with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Thursday. Šefčovič said this morning that the two sides are engaged in “constant conversations.”
The EU isn’t the only entity advancing tariff negotiations, as German auto titans Mercedes (MBGYY) BMW BMW, and Volkswagen (VWAGY) have approached the U.S. Commerce Department to strike a deal, according to German newspaper Handelsblatt. The deal reportedly includes a process to offset imports and imports while investing billions of dollars into the U.S. to receive better tariff conditions.
Meanwhile, President Trump rejected a new acronym during an Oval Office event: TACO trade, or Trump Always Chickens Out trade. TACO refers to the process of setting high tariffs and then later pulling or delaying them. “The sad thing is, now, when I make a deal with them, it’s something much more reasonable, they’ll say, ‘Oh, he was chicken. He was chicken.’ That’s unbelievable,” said Trump.
Finally, both SPX and NDX fell lower near the market close after the Financial Times reported that the Trump administration will limit semiconductor design software sales to China. The publication noted that the U.S. Commerce Department had already informed Cadence (CDNS), Synopsys (SNPS), and Siemens (SIEGY) of the new restrictions and is continuing to review “exports of strategic significance to China.”
The S&P 500 closed with a 0.56% loss while the Nasdaq 100 fell by 0.45%.
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