Dow, Nasdaq Futures Sharply Lower as Bond Yields Rise

Investors are also monitoring a budget bill in Washington

Fernanda Horner

Digital Content Manager

May 21, 2025 at 9:03 AM

Rising bond yields are pressuring stocks ahead of the open, with futures on the Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) down triple digits, while S&P 500 Index (SPX) futures also slump. The 30-year Treasury note moved back above 5% this morning, while the 10-year was last seen at 4.5%. Traders are also monitoring Washington, D.C. after yesterday's bout of profit taking, as Republicans look to introduce a budget bill that would lower taxes, though some traders are worried about its impact on the U.S. deficit.

Continue reading for more on today's market, including:

Best and worst stocks to own during Memorial Day week, per Senior Quantitative Analyst Rocky White.
Retail stock with contrarian potential ahead of earnings.
Plus, Target's revenue miss; another UnitedHealth scandal; and Lowe's sales growth.

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5 Things You Need to Know Today

The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts and over 1 million put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.56, while the 21-day moving average stayed at 0.59.
Target Corp (NYSE:TGT) stock is down 5.4% ahead of the open, after the retail concern missed first-quarter revenue expectations and lowered its full-year sales forecast. The company noted tariff uncertainty, waning consumer sentiment, and backlash over its rolled back diversity, equity, and inclusion (DEI) program. TGT already carries a 27.4% year-to-date deficit.
The shares of UnitedHealth Group Inc (NYSE:UNH) are down 3.9% in premarket, after The Guardian reported the healthcare giant secretly paid bonuses to nursing facilities to reduce hospital transfers of residents. HSBC also downgraded the equity to “reduce” from “hold.” UNH shed 36.4% so far in 2025.
Lowe's Companies Inc (NYSE:LOW) earlier reported a top-line beat for the first-quarter, while also reaffirming its full-year outlook. This sets the home improvement retailer on a path for year-over-year sales growth. LOW is up 1.8% before the bell, looking to trim its 6.3% deficit for the year.
Retail earnings, Fed speeches, and economic data on deck this week.

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European Markets Fall After U.K. Inflation Data

Asian markets traded mostly higher Wednesday. South Korea’s Kospi rose 0.9%, and Hong Kong’s Hang Seng added 0.6%, while China’s Shanghai Composite tacked on 0.2%. Japan’s Nikkei slipped 0.6%, after data showed exports slowed for a second-straight month under the weight of U.S. tariffs.

In Europe, stocks are mostly lower this afternoon after data showed a rise in U.K. inflation. Consumer prices rose 3.5% year-over-year in April, up from 3.2% in March and ahead of the 3.3% forecast. Core inflation also ticked higher to 3.8%. In response, London’s FTSE 100 is flat, while France’s CAC 40 and Germany’s DAX are down 0.6% and 0.1%, respectively, as traders also digest a packed earnings slate.

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