Leading cryptocurrencies spiked Tuesday on news that Treasury Secretary Scott Bessent <a href="https://www.benzinga.com/25/05/45242461/donald-trumps-trade-war-sparks-first-major-us-china-talks-scott-bessent-jamieson-greer-to-meet-chinese-delegation-in-geneva">will meet Chinese officials for trade talks</a>.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+2.82%</td><td>$97,197.36</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.03%</td><td>$1,834.96</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.90%</td><td>$0.1737</td></tr></tbody></table></figure>



What Happened: Following days of consolidation, Bitcoin recaptured $97,000 in the evening, reaching an intraday high of $97,625.81.



The rally also catalyzed Ethereum, pushing the second-largest cryptocurrency within touching distance of $1,850.



Over $326 million was liquidated from the cryptocurrency market in the last 24 hours, with nearly equal amounts of longs and shorts erased.



Speculative interest in Bitcoin soared, as evidenced by the 5% jump in Open Interest in the last 24 hours.



Meanwhile, the percentage of derivatives traders placing bullish long bets on Bitcoin increased to 53%, according to the Long/Short Ratio.



The market sentiment remained in the "Greed" zone, according to the Crypto Fear and Greed Index, suggesting a spike in buying pressure.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Litecoin (LTC)</td><td>+11.58%</td><td>$93.03</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+8.17%</td><td>$0.0117</td></tr><tr><td>Worldcoin (WLD)</td><td>+7.69%</td><td>$0.9398</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3 trillion, following a 2% increase in the last 24 hours.



Stocks closed the second straight session in the red. The Dow Jones Industrial Average fell 389.83 points, or 0.95%, to end at 40,829.00. The S&amp;P 500 lost 0.77% to close at 5,606.91, while the tech-heavy Nasdaq Composite slid 0.74%, ending at 17,689.66.



The Fed's decision on interest rates is expected to come Wednesday, with traders pricing in a 97% chance that the 4.25%-4.50% range will remain unchanged, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according </a>to the CME FedWatch tool.



Meanwhile, stock futures spiked Tuesday overnight after the Donald Trump administration confirmed that Bessent will meet Chinese officials for trade negotiations this weekend in Geneva.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Blockchain analytics firm Santiment said Bitcoin's key stakeholders were "moving in the right direction" to justify the $100,000 target in the near future.



"Wallets with the highest correlation with crypto&#8217;s overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more BTC (+0.61% of their holdings) during these past 6 weeks of volatility," the firm added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&#x1f433; As May progresses, Bitcoin&#39;s key stakeholders are mostly moving in the right direction if you&#39;re rooting for $100K <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> in the near future. Wallets with the highest correlation with crypto&#39;s overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more… <a href="https://t.co/4DKhOwROgx">pic.twitter.com/4DKhOwROgx</a>&mdash; Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1919872169674461354?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency analyst Michaël van de Poppe noticed Bitcoin's "solid" chart and expected the apex cryptocurrency to go further north.



"I think we&#8217;ll continue the grind on Bitcoin upwards, the key factor here is whether Gold starts to correct after FOMC tomorrow, indicating that there&#8217;s the start of the business cycle," Van De Poppe stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">A pretty solid chart on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>, which bounces back upwards. I think we&#39;ll continue the grind on Bitcoin upwards, the key factor here is whether Gold starts to correct after FOMC tomorrow indicating that there&#39;s the start of the business cycle. <a href="https://t.co/PGjLqgZ8Ow">pic.twitter.com/PGjLqgZ8Ow</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1919760190175367654?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Yalcin Sonat On Shutterstock.com



Read Next:    



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<li><a href="https://www.benzinga.com/25/05/45224972/xrp-drops-to-2-09-as-on-chain-activity-sputters-despite-etf-optimism">XRP Drops to $2.09 as On-Chain Activity Sputters Despite ETF Optimism</a></li>
</ul>

Cryptocurrency

News

Markets

Movers

Trading Ideas

$BTC

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Spike As Scott Bessent's Gears Up For Trade Talks With China: Key BTC Stakeholders 'Moving In The Right Direction' Towards $100,000 Target, Says Analytics Firm

On Tuesday, Cathie Wood&#8216;s Ark Invest made significant trades, notably selling shares of Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>). This move comes after Palantir&#8217;s stock faced pressure despite surpassing <a href="https://www.benzinga.com/news/earnings/25/05/45208000/palantir-q1-earnings-revenue-beat-eps-in-line-customer-count-up-39-company-raises-guidance-citing-surging-and-ferocious-growth">first-quarter earnings</a> expectations.



The Palantir Trade saw Ark Invest&#8217;s ARK Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#BATS">ARKK</a>) sell 376,874 shares of the AI-focused company. The trade was valued at $41.03 million. On Tuesday, Palantir shares closed 12.05% lower at $108.86.



This decision followed Palantir&#8217;s recent earnings report, which, despite exceeding analyst predictions, led to a stock decline. The stock&#8217;s drop is attributed to <a href="https://www.benzinga.com/25/05/45228456/whats-going-on-with-palantir-stock-tuesday">high investor expectations</a>. Palantir&#8217;s shares have surged 332% over the past year and 45% year-to-date, yet the post-earnings dip highlights market volatility.



Analysts remain divided on Palantir&#8217;s future. Some view it as a <a href="https://www.benzinga.com/25/05/45232694/palantir-stock-shows-momentum-with-q1-results-ai-opportunity-analyst-says-generation-tech-name-worth-1-trillion-in-future">key player in the AI sector</a>, predicting a potential $1 trillion market cap within three years. However, others, like Jefferies&#8217; Brent Thill, <a href="https://www.benzinga.com/25/05/45213810/palantir-stock-drops-925-after-earnings-beat-dan-ives-stays-bullish-but-jefferies-brent-thill-says-institutions-still-arent-interested">express skepticism</a> about institutional interest, emphasizing its retail-driven nature.



Palantir remains Ark&#8217;s second-largest holding, accounting for approximately 8.14% of the firm&#8217;s portfolio by weight, with a total value of $421.65 million.



Other Key Trades:



<ul>
<li>Personalis Inc. — Ark Invest&#8217;s ARKG ETF acquired 318,741 shares.</li>



<li>Guardant Health Inc. — 237,374 shares were purchased by ARKK.</li>



<li>Twist Bioscience Corp. — ARKK bought 283,186 shares.</li>



<li>Natera Inc. — 55,623 shares were added to ARKK.</li>



<li>GitLab Inc. — 30,107 shares were acquired by ARKK.</li>
</ul>



Want to know about other buzzing AI Stocks? Benzinga Edge Stock Rankings has you covered. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here</a> to find out more.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="433" height="271" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47.png" alt="" class="wp-image-904617" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47.png 433w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47-300x188.png 300w" sizes="(max-width: 433px) 100vw, 433px" /></a></figure>



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<li><a href="https://benzinga.com/general/market-summary/25/05/45218040/warren-buffett-expresses-disappointment-over-dollar-depreciation-dont-want-to-own-assets-i" target="_blank" rel="noreferrer noopener">Warren Buffett Expresses Disappointment Over Dollar Depreciation: Don&#8217;t Want To Own Assets In A Currency That Is &#8216;Really Going To Hell&#8217;</a></li>
</ul>



Photo Courtesy: Ira Lichi On Shutterstock.com



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

PLTR

Cathie Wood Sells $41 Million Worth Of Palantir Shares Following Post-Earnings Plunge

On Tuesday, the Donald Trump administration announced that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will <a href="https://www.benzinga.com/25/05/45160145/china-says-door-is-open-for-talks-while-it-is-assessing-us-trade-proposal-but-warns-coercion-and-extortion-wont-work">meet with senior Chinese</a> officials this weekend in Geneva, Switzerland.&nbsp;



What Happened: The gathering marks the first major face-to-face discussions between the two countries since the trade conflict began, <a href="https://apnews.com/article/trump-china-trade-switzerland-bessent-2a3335ed92989dc4b3a74ea550b79b3f?user_email=97d05b29432d778bbb1ffb8f16f2769451bf1d6125981f71ceccbe18ec8d01d8&amp;utm_medium=APNews_Alerts&amp;utm_source=Sailthru_AP&amp;utm_campaign=NewsAlert_May06_2025_06:55PM&amp;utm_term=AP%20News%20Alerts">reported</a> the Associated Press.



The Chinese Commerce Ministry confirmed that Vice Premier He Lifeng will represent Beijing during the talks.



The meetings are set to take place amid a backdrop of mounting tariffs, with the U.S. imposing duties of up to 145% on Chinese imports and China retaliating with tariffs of 125% on American goods.



In addition to their Chinese counterparts, Bessent and Greer are also scheduled to meet with Swiss President Karin Keller-Sutter, according to their offices, the report noted.



See Also: <a href="https://www.benzinga.com/media/25/05/45216185/bill-gates-says-trumps-climate-rollbacks-may-have-slowed-progress-but-microsoft-co-founder-doesnt-think-thats-a-permanent-thing-as-americas-commitment-to-clean-energy">Bill Gates Says Trump&#8217;s Climate Rollbacks May Have Slowed Progress, But Microsoft Co-Founder Doesn&#8217;t Think &#8216;That&#8217;s a Permanent Thing&#8217;</a>



Why It&#8217;s Important: In a note published Monday, veteran Wall Street investor Ed Yardeni said he's <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45192936/wall-street-veteran-investor-lowers-recession-risk-as-us-china-trade-war-cools">lowering his estimated probability</a> of a U.S. recession to 35%, down from 45% at the end of March.



The revised outlook, which returns to early March levels, signals increased optimism that tensions over tariffs between the U.S. and China may ease.



Last month, Morgan Stanley economists forecasted that the U.S. and China would initiate negotiations and steadily <a href="https://www.benzinga.com/markets/25/04/45065482/us-china-to-ease-tariffs-gradually-after-complex-talks-says-morgan-stanley-but-cuts-chinas-growth-outlook">reduce tariffs on Chinese imports</a> to 60% by the end of the second quarter. However, they do not anticipate a return to pre-Jan. 25 tariff levels.



The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has fallen 5.65% year-to-date, while the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is down 4.42%, as uncertainty over the U.S.-China trade war weighs on investor sentiment.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/tech/25/04/45090992/mark-zuckerberg-warns-of-serious-disadvantage-as-chinas-data-center-blitz-could-let-deepseek-leapfrog-us-ai-labs" target="_blank" rel="noreferrer noopener">Mark Zuckerberg Warns Of ‘Serious Disadvantage&#8217; As China&#8217;s Data-Center Blitz Could Let DeepSeek Leapfrog US AI Labs</a></li>
</ul>



Photo Courtesy: Tomas Ragina on Shutterstock.com



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Government

Economics

Media

Scott Bessent To Meet Chinese Officials For Crucial Trade Talks In Switzerland: Trump Administration

Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) released its third-quarter results after Tuesday's closing bell. Here's a look at the details<a href="https://www.benzinga.com/pressreleases/25/05/b45235128/supermicro-announces-third-quarter-fiscal-year-2025-financial-results"> from the report. </a>



The Details: Super Micro Computer reported quarterly earnings of 31 cents per share, which missed the analyst consensus estimate of 50 cents by 38%. Quarterly revenue came in at $4.6 billion, which missed the analyst consensus estimate of $5.42 billion by 15.1%.



Non-GAAP gross margin was 9.7% with adjustments for stock-based compensation expenses of $7 million.&nbsp;



The company had <a href="https://www.benzinga.com/news/earnings/25/04/45086254/super-micro-computer-stock-is-tanking-after-hours-whats-fueling-the-sell-off">previously said </a>it expected to report third-quarter revenue of $4.5 billion to $4.6 billion, and adjusted earnings in the range of 29 cents to 31 cents per share. 



Read Next:&nbsp; <a href="https://www.benzinga.com/news/legal/25/05/45226604/president-trump-wants-to-reopen-alcatraz-heres-what-it-would-take?utm_source=articleShare">President Trump Wants To Reopen Alcatraz: Here&#8217;s What It Would Take</a>



&#8220;We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter,&#8221; said Charles Liang, CEO of Supermicro. 



&#8220;We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however, economic uncertainty and tariff impacts may have a short-term impact. We believe that we are well-positioned in the long term to capitalize on the growing market opportunity,&#8221; Liang added.



Outlook:&nbsp;Super Micro expects net sales of $5.6 billion to $6.4 billion for the fourth quarter and non-GAAP net income of 40 cents to 50 cents per diluted share.



SMCI Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Super Micro Computer stock was down 4.07% after-hours at $31.60 on Tuesday.  



Read Next:&nbsp;



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45228179/upwork-delivers-solid-start-to-2025-analyst?utm_source=articleShare">Upwork Delivers &#8216;Solid Start To 2025&#8217;: Analyst&nbsp;</a></li>
</ul>



Photo: Shutterstock

Earnings

After-Hours Center

Tech

SMCI

Super Micro Computer Stock Slips After Q3 Results: 'Uncertainty And Tariffs May Have A Short-Term Impact,' CEO Says

U.S. utility stocks roared higher on Tuesday, notching fresh highs not seen since late 2024, as investors rotated toward defensive assets while Washington's trade policy <a href="https://www.benzinga.com/news/econ-s">outlook became increasingly muddled.</a>



The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) climbed 1.8% during Tuesday trading, pushing the benchmark ETF to levels last seen in early December 2024. 



That gain cemented a 6.3% year-to-date advance, more of any other S&amp;P 500 sector. It outpaced technology stocks by 15 percentage points and the consumer discretionary sector by 18 percentage points.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>ETF Name </th><th>% Change YTD</th></tr></thead><tbody><tr><td>Utilities Select Sector SPDR Fund</td><td>+6.32%</td></tr><tr><td>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td><td>+3.50%</td></tr><tr><td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td><td>+2.24%</td></tr><tr><td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td><td>+1.70%</td></tr><tr><td>Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td><td>+1.28%</td></tr><tr><td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td><td>+0.86%</td></tr><tr><td>Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td><td>-0.51%</td></tr><tr><td>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td><td>-2.42%</td></tr><tr><td>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td><td>-6.05%</td></tr><tr><td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td><td>-8.15%</td></tr><tr><td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td><td>-11.99%</td></tr></tbody></table><figcaption class="wp-element-caption">Performance as of May 6, 2025</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="528" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1024x528.png" alt="" class="wp-image-904364" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1024x528.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-300x155.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-768x396.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1536x792.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-2048x1056.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Utilities Take The Lead</h3>



Still, the utilities sector remains one of the least crowded trades on Wall Street. Despite its 2024 outperformance, the lack of investor interest suggests an underownership of the sector.



In a note shared this week, Bank of America's latest Equity Client Flow Trends showed that utilities were the only sector to post outflows last week when institutional and retail clients alike bought into 10 out of 11 sectors—marking the widest sector participation in 10 months.



Tuesday's rally was driven in part by Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>), which jumped 11.87%, brushing off weaker-than-expected first-quarter earnings thanks to an optimistic full-year forecast. Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) gained 4.44%, ahead of its earnings release on Wednesday, while AES Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AES#NYSE">AES</a>) added 2.49%.



Looking at the 2025 performance, NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) leads the utilities sector with a 31.4% YTD gain, followed by Consolidated Edison Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ED#NYSE">ED</a>), up 25.6%, and Exelon Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXC#NASDAQ">EXC</a>), which has surged 24.5%.



Tuesday's market backdrop was shaped by fresh uncertainty surrounding U.S. trade relations. During a meeting with Canadian Prime Minister Mark Carney, President Donald Trump floated the idea of renegotiating the United States-Mexico-Canada Agreement (USMCA) and claimed China is eager to return to the negotiating table due to its economic weakness.



Trump said talks with China would happen &#8220;at the right time,&#8221; adding that the U.S. was not obligated to finalize any deals.



<h3 class="wp-block-heading">Fed Steady For Now, But All Eyes on Powell</h3>



Attention now turns to Wednesday's Federal Reserve meeting, where economists broadly expect the central bank to hold interest rates steady at the 4.25%-4.5% range.



There's a 97% probability that the Fed will make no changes to policy in May, according to CME Group's FedWatch Tool. 



Yet, markets are already looking ahead to potential rate cuts. Fed futures pricing implies a 31% chance of a 25-basis-point cut in June and 78% by July. By year-end, there's an 82% chance the Fed will have delivered three rate cuts.



The post-decision press conference is expected to focus on Fed Chair Jerome Powell's response to political pressure, particularly after Trump's public calls for lower rates, which have reignited concerns about the central bank's independence.



Read Next: 



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</ul>



Photo: Shutterstock

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ETFs

XLRE

Utilities Hit Highest Levels Since 2024 As Trade Jitters Drive Investors To Safety

Gold&#8217;s latest surge, inspired by China&#8217;s safe-haven dash, a declining dollar and a geopolitical situation more knotted than a string of Christmas lights—has investors abuzz. While spot gold jumped 3.03% on Tuesday to $3,414.24, astute gold seekers are digging deeper. 



Meet the VanEck Merk Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OUNZ#NYSE">OUNZ</a>), the golden child of <a href="https://www.benzinga.com/etfs" target="_blank" rel="noopener">physically backed ETFs that</a> offer a &#8220;just-in-case&#8221; delivery feature for those who prefer their portfolios to include physical bullion.



Merk Investments president and CIO Axel Merk told Benzinga that this golden opportunity is not coincidental. &#8220;In the current environment, tariffs may well alter the plumbing of the global financial system,&#8221; he said, citing increasing anxiety about monetary policy, recession fears and the potential for U.S.–China tariff disruption to divert global financial plumbing. &#8220;Add to this a highly leveraged financial system, and we see a growing number of investors turning to gold in anticipation of a range of potential unintended consequences, including pressure on the Federal Reserve to lower interest rates.&#8221;



An ETF Containing Actual Gold



What distinguishes OUNZ isn&#8217;t merely its paltry 0.25% expense ratio (comparable to iShares Gold Trust (ARCA: IAU), lower than SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)), but its special benefit: <a href="https://www.benzinga.com/topic/gold">investors can receive physical gold</a>—whether London Bars or Maple Leafs. Merk&#8217;s patented conversion process enables these large bullion bars to be converted into investor-friendly coins, making OUNZ the ETF version of an alchemist with excellent logistics.



Year to date, the fund has experienced more than $150 million in inflows, according to Merk, marching in tandem with gold&#8217;s rising surge. While not all exchange their ETF shares for glittering coins, six deliveries have already been made this year, primarily by high-net-worth individuals seeking something more tactile than spreadsheets.



Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45229767/pltr-focused-etfs-down-whats-really-behind-palantirs-plunge-the-numbers-dont-tell-the-full-st">PLTR-Focused ETFs Down: What&#8217;s Really Behind Palantir&#8217;s Plunge? The Numbers Don&#8217;t Tell The Full Story</a>



Long-Term Mindset In A Short-Term World



OUNZ is not your typical trader&#8217;s sandbox. Most investors go in on its delivery option rather than the action. &#8220;Many investors are drawn to OUNZ because of the option to take physical delivery, even if they never exercise it. As a result, OUNZ tends to attract long-term holders rather than short-term traders. This was evident last year when other gold products saw outflows while OUNZ maintained steady inflows. We typically process a few deliveries each month; year-to-date, there have been six,&#8221; Merk said, crediting the ETF&#8217;s popularity with long-term holders who enjoy converting financial worry into something they can pile in a safe.



Tax-Smart And Apocalypse-Ready?



Receiving delivery of gold via OUNZ is not taxable since you&#8217;re technically not claiming anything you don&#8217;t already possess. It&#8217;s the gold version of grabbing a pizza you&#8217;ve already paid for online. Just don&#8217;t go for a Krugerrand, though. Its below-95% purity makes it a tax gray area, warns Merk.



Greater Appeal In An Unpredictable World



In the post-pandemic era, investor demand for physical gold has widened. The erstwhile niche &#8220;gold bug&#8221; segment has mainstreamed, with inflation anxiety and sovereign debt mountains rising. Merk assertively believes this is just the start. And while central banks continue to pile up gold, OUNZ&#8217;s inflows are less a product of panic buying and more a function of careful strategy.



However, sound retail interest is driving the success of the ETF. &#8220;While demand for OUNZ has increased, we have not seen signs of panic buying. Importantly, coin premiums have not spiked—typically a telltale sign of strong retail engagement. While retail interest has grown, much of the buying has come from institutions. In that sense, central bank gold purchases have not directly influenced retail appetite,&#8221; Merk explained.



The Bottom Line



As macro uncertainty simmers, Fed announcements loom and Trump hints at trade agreements, the OUNZ provides more than gold exposure. It provides flexibility, tranquility, and sure, real gold in your pocket if the mood (or market) strikes.



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Photo: Shutterstock

Specialty ETFs

Commodities

Exclusives

Interview

OUNZ

Exclusive: Expert Explains How This Gold ETF Lets You Physically Hold Your Wealth And Why Investors Are Quietly Rushing In

Treasury Secretary Scott Bessent told lawmakers Tuesday that the U.S. economy is showing strong signs of resilience, with job gains outpacing expectations and inflation finally easing across key consumer categories, championing the <a href="https://www.benzinga.com/topic/donald-trump">Trump administration&#8217;s policy actions.</a>



In testimony before the House Appropriations Committee, Bessent defended the Trump administration's economic playbook, calling it a "three-legged stool" of trade, tax and deregulation designed to accelerate domestic investment and push wages higher. 



&#8220;464,000 new jobs were added to the economy in the first 100 days,&#8221; he said. 



&#8220;In April alone, over 177,000 American jobs were added, which is more than 40,000 than economists predicted,&#8221; he added.



<h3 class="wp-block-heading">Tariff Talks Accelerate, Trade Deals on Deck</h3>



When questioned on the administration's international strategy, Bessent revealed that the U.S. is actively renegotiating tariffs with 17 of its 18 top trading partners a move that could yield significant progress in the coming months.



"I would be surprised if we don't have more than 80 or 90 percent of those wrapped up by year-end," Bessent said. "That may be much sooner… perhaps as early as this week."



He said many countries have submitted "very good offers" in the wake of Trump's sweeping tariff schedule announced April 2, which targeted all trading partners. A 90-day pause was introduced a week later to allow room for bilateral negotiations.



Bessent argued that tariffs are proving effective, not just economically but strategically. "They may not like the tariffs the president has put up, but they have them," he said.



&#8220;We are aiming for fair trade to bring back high paying precision, manufacturing jobs to the U.S.,&#8221; Bessent said. 



When Rep. Mark Pocan (D-WI) pressed Bessent on who ultimately pays for tariffs, the Treasury Secretary avoided a direct answer, saying "strategic uncertainty is part of negotiations."



<h3 class="wp-block-heading">No Signs Of Recession, Stronger GDP Expected</h3>



Asked whether the U.S. economy is heading toward a recession, Bessent said the data show no such signal.



"There is nothing in the data that indicates the U.S. is in a recession," he said, adding he expects first-quarter GDP figures to be revised higher. 



He also said that tax receipts should remain strong, citing improvements in collection efficiency due to artificial intelligence.



Still, Bessent called for greater fiscal discipline. "Last year, we had a 6.7% fiscal deficit — the largest ever during peacetime or non-recessionary times. The easy thing would be to keep spending to keep the economy running. But that path is unsustainable."



"We have set the table for a robust economy that allows Main Street to grow," Bessent added.



<h3 class="wp-block-heading">Push For Permanent Tax Cuts Gains Momentum</h3>



Bessent reiterated that the Trump administration's next priority is to make its tax cuts permanent. With House Speaker Mike Johnson expected to send a bill to the Senate by Memorial Day, Bessent said momentum is building.



"We look forward to working closely with the members of this committee to pass this bill into law," he said. "Together, we can build a stronger, safer and more prosperous America."



<h3 class="wp-block-heading">Market Reactions</h3>



The S&amp;P 500 index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), pared losses during Bessent's testimony, rising 30 points or 0.6% between 10:00 and 11:00 a.m. ET.



The Nasdaq 100 also moved off session lows, climbing 150 points or 0.8% in the same period, narrowing its decline to 0.7%.



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Photo: Shutterstock

Regulations

Bessent Signals Imminent Trade Deals, Dismisses Recession Fears As Stocks Rebound

Although billionaire hedge fund manager&nbsp;Paul Tudor Jones&nbsp;believes AI can be a force for good, he also issued a stark warning on Tuesday suggesting it has the potential to <a href="https://www.benzinga.com/news/24/06/39319028/terminator-in-real-life-ai-godfather-warns-of-human-wipe-out-in-5-to-20-years">wipe out 50% of humanity</a>.



What Happened: Tuesday on CNBC&#8217;s &#8220;Squawk Box,&#8221; Jones, the founder and chief investment officer of&nbsp;Tudor Investment, warned of the negative potential of <a href="http://benzinga.com/topic/ai">AI</a> based on takeaways from a technology conference he attended two weeks ago. 



Although he acknowledged that he&#8217;s &#8220;not a tech expert,&#8221; he said the conference featured a panel of four of the &#8220;leading modelers&#8221; of the top AI models being used today, who all agreed that there is at least a small chance that AI could cause significant harm to the human race. 



There were three big takeaways from the panel, he said. First, AI can be a force for good and we are going to start seeing it in education and healthcare in the very near future. Second, these AI models are increasing their efficiency and performance by 25% to 500% every three or four quarters. Lastly, AI &#8220;clearly poses an imminent threat&#8221; to humanity, he said. 



When asked about what they were doing to prepare for the security threat that AI poses, one of the panel members said he was buying 100 acres in the Midwest and raising chickens and cattle. According to Jones, the panelist also said that the world is not likely to take the threat of AI really seriously until an &#8220;accident&#8221; occurs where &#8220;50 to 100 million people die. &#8221; He added that no one else on the panel pushed back against that idea.



&#8220;Afterwards, we had a breakout session, which was really interesting. All 40 people got up in a room like this and they had a series of propositions and you had to either agree with or disagree with the proposition,&#8221; Jones said. 



&#8220;One of the propositions was there&#8217;s a 10% chance in the next 20 years that AI will kill 50% of humanity &#8230; the vast majority of the room moved to the disagree side &#8230; all four modelers were on the agree side.&#8221;



Check This Out: <a href="https://in.benzinga.com/tech/25/05/45191784/elon-musk-wants-his-legacy-to-be-advancing-civilization-says-without-truth-seeking-ai-the-future-could-be-dangerous">Elon Musk Wants His Legacy To Be Advancing Civilization, Says Without &#8216;Truth-Seeking AI,&#8217; The Future Could Be &#8216;Dangerous&#8217;</a>



Jones told CNBC that the room then debated the proposition. One of the modelers suggested that it&#8217;s possible that someone could &#8220;bio hack&#8221; a weapon that could take out half of humanity, given how quickly the models are growing and commoditizing knowledge. 



&#8220;I don&#8217;t know, 10% seems reasonable to me,&#8221; Jones said. 



He emphasized that he&#8217;s not an expert in technology, but noted that he&#8217;s spent his entire life managing risk.



&#8220;We just have to realize, to their credit, all these folks in AI are telling us we&#8217;re creating something that&#8217;s really dangerous — it&#8217;s going to be really great too — but we&#8217;re helpless to do anything about it. That&#8217;s, to their credit, what they&#8217;re telling us, and yet we&#8217;re doing nothing right now and it&#8217;s really disturbing,&#8221; Jones said. 



Jones told CNBC that there was about $250 billion dollars spent on AI development among the <a href="https://www.benzinga.com/content/45185180/magnificent-7-stocks-send-a-dire-warning-to-markets">Magnificent Seven</a> tech giants in 2024. According to the four modelers at the tech conference, the AI spend on security was less than $1 billion, he said. 



To mitigate the potential downside of AI, the leading AI companies need to dramatically increase spending on AI security and President Donald Trump has to increase regulations on AI development, Jones said. 



&#8220;I just want to say one last thing. I&#8217;m really concerned about these open-source models and how they are commoditizing and making what were previously indecipherable pockets of knowledge easily accessible,&#8221; he said. 



&#8220;You can have a bad actor like Osama bin Laden take these things with his cult following somewhere down the road, or you can have innocent actors like hopefully those researchers in Wuhan laboratory make a mistake, who made a mistake, and they can be real threats to humanity.&#8221;



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Image created using artificial intelligence via Midjourney.

Paul Tudor Jones Warns AI Could 'Kill 50% Of Humanity' Without Proper Oversight: 'We're Creating Something That's Really Dangerous'

Wall Street edged lower by midday Tuesday as uncertainty surrounding trade policies lingered, with investors adopting a cautious approach ahead of <a href="https://www.benzinga.com/topic/federal-reserve">Wednesday&#8217;s Federal Reserve meeting.</a>



In a meeting with Canadian Prime Minister Mark Carney, President Donald Trump suggested the U.S. may soon begin renegotiating the USMCA. He noted that China is eager to negotiate due to its struggling economy, driven by a lack of U.S. trade, but emphasized the talks would take place &#8220;at the right time.&#8221;



Trump kept his trade stance unclear, suggesting that while some agreements may be signed, there is no obligation to finalize any, and dismissed repeated questions about the number of deals in progress.



The S&amp;P 500 dipped 30 points, or 0.6%, to 5,610, on track for its second consecutive negative session after nine straight gains. The Nasdaq 100 dropped 0.8%, while the Russell 2000 slipped 1%.



Ten of the 11 S&amp;P 500 sectors were in the red, with utilities as the only sector in the green. The U.S. dollar fell, extending its losses for a third straight session.



Commodities saw a broad rally, with oil prices surging 3.6%, pushing WTI above $59, following <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45224883/oil-soars-above-59-as-middle-east-airstrikes-jolt-markets">Israeli airstrikes in Yemen</a>. Gold also rallied, climbing 2.4% to above $3,400 per ounce amid heightened geopolitical tensions.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reversed Monday's gains, slipping 0.4% to $94,375.



<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>S&amp;P 500</td><td>5,614.65</td><td>-0.6%</td></tr><tr><td>Dow Jones</td><td>40,905.06</td><td>-0.8%</td></tr><tr><td>Nasdaq 100</td><td>19,796.10</td><td>-0.9%</td></tr><tr><td>Russell 2000</td><td>1,983.93</td><td colspan="2">-1.0%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:55 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.7% to $559.24.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.8% to $409.01.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;fell 0.9% to $481.23.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) tumbled 1.1% to $196.68.</li>



<li>The&nbsp;Utilities&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up 1.2%; the&nbsp;Health Care&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 2.4%.</li>
</ul>



<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>



Stocks reacting to earnings reports included: 



<ul>
<li>Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) up 2.70%</li>



<li>The Clorox Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>) down 2.31%</li>



<li>Coterra Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTRA#NYSE">CTRA</a>) down 9.95%</li>



<li>Vertex Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRTX#NASDAQ">VRTX</a>) down 13.9%</li>



<li>Diamondback Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) down 0.53%</li>



<li>Realty Income Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>) down 0.68%</li>



<li>The Williams Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>) down 5.19%</li>



<li>Celanese Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CE#NYSE">CE</a>) up 9.14%</li>



<li>Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) down 7.37%</li>



<li>Lattice Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>) down 13.6%</li>



<li>Mattel Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) up 3.61%</li>



<li>Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) down 13.6%</li>



<li>Duke Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) up 2.24%</li>



<li>Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>) up 10.94%</li>



<li>TransDigm Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>) down 5.67%</li>



<li>Marriott International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>) up 1.26%</li>



<li>Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>) down 3.32%</li>



<li>American Electric Power Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEP#NASDAQ">AEP</a>) up 0.52%</li>



<li>Marathon Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>) up 0.37%</li>



<li>Fidelity National Information Services, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FIS#NYSE">FIS</a>) down 2.88%</li>



<li>WEC Energy Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEC#NYSE">WEC</a>) up 0.77%</li>



<li>Gartner, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IT#NYSE">IT</a>) up 1.14%</li>



<li>IQVIA Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IQV#NYSE">IQV</a>) down 1.32%</li>



<li>Archer-Daniels-Midland Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>) up 2.02%</li>



<li>Waters Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAT#NYSE">WAT</a>) down 4.43%</li>



<li>Leidos Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LDOS#NYSE">LDOS</a>) up 4.11%</li>



<li>Global Payments Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPN#NYSE">GPN</a>) down 1.43%</li>



<li>GlobalFoundries Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>) down 3.57%</li>



<li>Expeditors International of Washington, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPD#NYSE">EXPD</a>) down 3.67%</li>



<li>Ball Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BALL#NYSE">BALL</a>) up 0.55%</li>



<li>Jacobs Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/J#NYSE">J</a>) down 5.56%</li>
</ul>



Stocks slated to report earnings after the close include: Assurant Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIZ#NYSE">AIZ</a>), Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>), Gen Digital Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEN#NASDAQ">GEN</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), International Flavors &amp; Fragrances Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IFF#NYSE">IFF</a>), Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), Mosaic Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOS#NYSE">MOS</a>), Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>), Wynn Resorts Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>), Jack Henry &amp; Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JKHY#NASDAQ">JKHY</a>), Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>), Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), Coty Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COTY#NYSE">COTY</a>) and Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>).



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Photo: Gumbariya via Shutterstock

Mid Cap

Broad U.S. Equity ETFs

Small Cap

Global

ANET

BALL

COTY

CPAY

CTRA

EXPD

FANG

JKHY

LDOS

LSCC

RIVN

VRTX

WYNN

Stocks Fall On Trade Concerns, Oil And Gold Rally: What's Driving Markets Tuesday?

West Texas Intermediate crude prices rebounded sharply on Tuesday, surging more than 3.6% to $59.10 per barrel by 10:00 a.m. ET, as escalating geopolitical tensions in the Middle <a href="https://www.benzinga.com/markets/commodities">East rattled energy markets</a>.



The rally came after Israeli fighter jets launched a wave of airstrikes in Yemen, targeting Houthi-controlled infrastructure, including Sanaa International Airport, in retaliation for recent missile and drone attacks on Ben Gurion Airport that left several injured.



<h3 class="wp-block-heading">War Tensions Reverse Monday's Oil Slump</h3>



The sharp rebound in oil fully reversed Monday's losses, which had been triggered by OPEC+'s decision to increase output by 411,000 barrels per day starting in June, a move that prompted Goldman Sachs to slash<a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45198741/goldman-sachs-issues-bearish-40-oil-forecast-as-opec-pumps-more-energy-stocks-sink"> its oil price forecasts.</a>



But the latest developments out of the Middle East have shifted the narrative quickly, as traders reassess supply risk in a region crucial to global oil flows.



In a statement on social media X, the Israel Defense Forces (IDF) said it struck terrorist infrastructure used by the Iran-backed Houthi regime, including power plants and logistics hubs exploited for weapons transfers and tunnel construction. 



The IDF emphasized it took steps to mitigate harm to civilians, adding, "The IDF is determined to continue operating—at any distance—against all threats posed to the citizens of the State of Israel."



<h3 class="wp-block-heading">Energy Stocks Show Muted Response</h3>



Despite the spike in crude prices, U.S. energy stocks remained broadly flat, reflecting a degree of investor caution following Monday's rout and continued uncertainty surrounding OPEC+ policy and global demand.



The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) edged up just 0.1% following a 1.8% slump a day earlier. Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) gained 1% and Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) rose 0.2%.



Top performers within the XLE ETF included:



<ul>
<li>APA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>) up 1.3%</li>



<li>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) up 1.9%</li>



<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) up 2.2%</li>
</ul>



Read more: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45220645/us-trade-deficit-soars-to-record-140b-as-imports-rocket-ahead-of-trumps-tariffs">US Trade Deficit Soars To Record $140B As Imports Rocket Ahead Of Trump&#8217;s Tariffs</a></li>
</ul>



Photo: Shutterstock

Oil Soars Above $59 As Middle East Airstrikes Jolt Markets

The U.S. trade deficit widened sharply to an all-time high in March as American companies rushed to import foreign goods ahead of President Donald Trump&#8216;s sweeping new trade tariffs. This move triggered a rush of orders and <a href="https://www.benzinga.com/topic/tariffs">skewed international trade flows.</a>



According to data released Monday by the U.S. Bureau of Economic Analysis and the Census Bureau, the trade deficit surged 14% from a revised $123.2 billion in February to $140.5 billion in March, the most significant monthly gap ever recorded.



The spike was driven by a 4.4% jump in imports to $419 billion, while exports rose just 0.2% to $278.5 billion.



<h3 class="wp-block-heading">March Trade Data Shows Imports Far Outpacing Exports</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>U.S. Trade Deficit (March):</td><td>$140.5 Billion</td><td>+14.0%</td></tr><tr><td>U.S. Exports (March):</td><td>$278.5 Billion</td><td>+0.2%</td></tr><tr><td>U.S. Imports (March):</td><td>$419.0 Billion</td><td>+4.4%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Import Surge Fueled By Tariff Fears</h3>



The March data likely reflect a wave of frontrunning, a strategy in which businesses accelerate shipments to anticipate policy changes.



On April 2, the Trump administration announced a sweeping tariff package targeting all trading partners, which sent ripples through global supply chains and financial markets. Just one week later, the White House introduced a 90-day pause to allow time for trade negotiations.



Consumer goods imports jumped $22.5 billion in March, driven by a staggering $20.9 billion surge in pharmaceutical preparations, as well as gains in automotive parts, computer accessories, and capital goods. Meanwhile, imports of industrial supplies and materials fell $10.7 billion.



Read Also: <a href="https://www.benzinga.com/news/global/25/05/45215257/bill-ackman-calls-tariffs-a-one-time-reset-warns-prolonged-china-fight-could-drag-market-slump-to-q2">Bill Ackman Calls Tariffs A &#8216;One Time Reset,&#8217; Warns Prolonged China Fight Could Drag Market Slump To Q2</a>



<h3 class="wp-block-heading">Record Goods Deficit, Weak Services Surplus</h3>



The goods deficit alone ballooned by $16.5 billion to $163.5 billion, while the services surplus shrank $800 million to $23.0 billion.



Year-to-date, the total trade deficit has soared 92.6% from the same period in 2024, totaling an additional $189.6 billion as import growth of 23.3% continues to far outpace exports, which rose by 5.2%.



The trade gap expanded to $131.4 billion on a three-month moving average basis, up $14.1 billion from February. Imports averaged $407.1 billion, while exports averaged $275.7 billion.



<h3 class="wp-block-heading">European Union, China, Mexico Lead Deficit Expansion</h3>



Country-level data revealed deficits with the European Union at $48.3 billion, Ireland at $29.3 billion, and China at $24.8 billion.



The deficit with Ireland surged by $15.3 billion, primarily due to a sharp increase in pharmaceutical imports — a potential reflection of rushed purchases by U.S. health companies ahead of expected cost increases under the tariffs.



Deficits with France rose by $2.4 billion and with Mexico by $1.5 billion. The deficit with Switzerland, by contrast, narrowed by $4.1 billion due to a notable drop in imports.



<h3 class="wp-block-heading">Export Trends Remain Soft</h3>



Goods exports rose modestly by $1.3 billion to $183.2 billion in March, with notable gains in natural gas, nonmonetary gold, and automotive vehicles. Yet, capital goods exports declined $1.5 billion, weighed down by a $1.8 billion drop in civilian aircraft.



Services exports dipped $900 million to $95.2 billion, largely driven by a $1.3 billion decline in travel services. This decline is possibly tied to weaker demand in tourism-related sectors amid higher international costs and lingering economic uncertainty.



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/news/large-cap/25/05/45205780/sp-500-stocks-that-defy-sell-in-may-myth-5-companies-with-strong-historical-gains">S&amp;P 500 Stocks That Defy &#8216;Sell In May&#8217; Myth: 5 Companies With Strong Historical Gains</a></li>
</ul>



Image: Shutterstock

US Trade Deficit Soars To Record $140B As Imports Rocket Ahead Of Trump's Tariffs

If you have been around the energy markets long enough, you know crude oil has a flair for the dramatic.



When it sells off, it does not just trickle down; it falls off a cliff.



The rebound is vicious, fast and usually overdue when it finally wakes up. The trick, as always, is understanding the cycles, not panicking in the downtrend, and positioning for the inevitable rebound.



That is especially true for one of my favorite corners of the energy market: mineral royalty trusts and non-operator oil and gas interests. These are the little guys who do not drill a thing but still get paid when the oil flows.



All this is happening again right now. 



It's setting you up for the best income trade in a decade.



Let us walk through the big oil busts of the last few decades in the late 1990s: the 2008 crash, the 2014 to 2016 wipeout, and, of course, the COVID collapse of 2020.



I want to talk about what happened, how long sentiment stayed sour and what eventually got prices off the mat. Then, we will dig into what all that meant for the royalty trusts and non-operators and how their dividends held up (or not), how the market treated them, and what happened when oil came roaring back.



<h2 class="wp-block-heading">1998: The Asian Flu And The $10 Barrel</h2>



In the late 1990s, OPEC had a problem. They pumped too much oil, thinking Asia would keep consuming it. However, when the Asian financial crisis hit, demand cratered, inventories ballooned, and prices dropped like a rock.



Brent went as low as $10, and nobody wanted to touch an oil stock with a ten-foot pole.



Royalty trusts got smashed. Cash flows dried up, distributions were cut, and unit prices plunged. Investors were left staring at trailing yields in the teens, but those payouts were not sticking around.



Most trusts saw 50% or more wiped off their market capitalizations. However, by late 1999, OPEC got its act together and cut production. Inventories fell, demand slowly came back, and oil doubled. Royalty trust distributions rebounded quickly, and anyone who had the courage to buy when it all looked hopeless got rewarded in a big way.



<h2 class="wp-block-heading">2008: Peak Oil Euphoria Meets Lehman Brothers</h2>



By mid-2008, oil was $147 a barrel and people were chanting "peak oil" like it was gospel.



Then, the financial system imploded.



Demand evaporated, oil crashed to $30 and panic spread. Trust distributions went over the cliff.



Sabine Royalty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBR#NYSE">SBR</a>) cut payouts by more than 50% in a single month.



Prices followed. These income names saw unit values drop 70% or more.



Yields were sky-high on paper, showing 20% or even 30%, but those were based on past payouts that had already been slashed. For most of 2009, distributions were a shadow of their former selves.



However, when the smoke cleared, oil demand returned, OPEC slashed production, and oil started climbing again. Trust distributions bounced, unit prices doubled or tripled off the lows and yields normalized in the high single digits.



Patience paid off.



<h2 class="wp-block-heading">2014 To 2016: The Shale Tsunami</h2>



This one was different. It was not a demand crash. It was too much U.S. shale oil.



OPEC got tired of losing market share and let prices fall from $115 in mid-2014 to under $30 by early 2016. Oil was in freefall for almost two years.



That stretched the pain out.



It was Drill, Baby, Drill Gone Bad, The Prequel.



Royalty and non-op names bled out slowly. Distributions did not collapse all at once&#8230;they just shrank quarter by quarter.



Permian Basin Royalty Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBT#NYSE">PBT</a>) payout dropped by two-thirds.



PrairieSky (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PREKF#OTC">PREKF</a>) and Freehold slashed their dividends.



The market priced them accordingly.



Yields dropped, unit prices got hammered, and by 2016, it was hard to find anyone still bullish.



Then OPEC and Russia teamed up and finally cut production in late 2016.



By 2017, oil was back in the $60s, and royalty trusts started increasing dividends again.



Trusts that had lost 70% of their value doubled or more over the next 18 months. Investors who stayed the course got paid.



<h2 class="wp-block-heading">2020: The Pandemic Panic And Negative Oil Prices</h2>



Then came COVID. Demand did not just shrink. It vanished.



Planes stopped flying, cars stopped driving, and suddenly, the world was drowning in oil.



Saudi Arabia and Russia decided to have a price war on top of it all, and in April 2020, WTI futures went negative.



Royalty trusts had a rough time. Distributions were suspended.



Permianville (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVL#NYSE">PVL</a>) went 13 months without a single payout.



PrairieSky slashed its dividend by two-thirds.



Investors fled. Unit prices dropped 60% to 80% in weeks.



Trailing yields? Meaningless. Nobody was paying anything.



However, it did not last.



OPEC+ made historic cuts.



Demand started recovering.



When vaccines arrived in late 2020, the game changed. By mid-2021, Permianville was paying again. PrairieSky and Freehold started raising dividends.



Share prices doubled or tripled.



By 2022, Sabine's distribution hit $8.65, a monster rebound.



<h2 class="wp-block-heading">What It All Means</h2>



These downturns tell the same story every time: oil crashes, royalty and non-operator income disappear, and the market throws these stocks in the trash. Yields spike on trailing numbers, then vanish when dividends get cut. Sentiment stays ugly for too long.



However, when the oil price recovers, and it always has, these names come back fast. Distributions climb, unit prices follow, and investors who bought when everyone else was scared end up with huge yields on cost and big capital gains.



They are not for the faint of heart. You have to be willing to hold when there is blood in the oil patch.



It's a pain trade.



However, if you buy these things when oil is hated and the checks have stopped, you set yourself up for some of the most explosive total returns in the market.



This is deep value investing, oilfield-style.



And now, it's happening again.



Read the headlines:



<ul>
<li>OPEC is going to increase production.</li>



<li>Oil demand forecasts are being cut.</li>



<li>The much more energy-efficient AI from China will slash demand even further.</li>



<li>Nuclear energy plants are going to pop up like mushrooms with no regulatory delays or cost overruns and be built faster than Buc-ee's.</li>



<li>China will never import another drop of oil.</li>
</ul>



Negative sentiment is building, we&#8217;ve seen some distribution cuts and optimism is harder to find than a good book in a Blockbuster.



Royalty trusts and nonowner operators may go down before they go up, but when they do, they are going to go up a lot.



Those who buy in scale, with patience and a dash of courage, will be well rewarded.



<h2 class="wp-block-heading">Risk, Reward &amp; Reversals: Tactical Options Strategies for an Unstable Market</h2>



When markets get unpredictable, disciplined options strategies can give you an edge. Join Ryan Faloona, Anne-Marie Baiynd and Tim Melvin live on May 6 to learn how they're using risk reversals, 0DTE plays, and hedging tactics to stay nimble and generate income. Save your spot now to learn how to trade smarter this week.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

PREKF

OPEC Just Created The Income Trade Of The Decade

DoorDash Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>) stock dipped Tuesday after the food delivery company reported strong order growth and confirmed two major acquisitions, even as quarterly revenue missed analyst expectations.



DoorDash&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45217040/doordash-releases-first-quarter-2025-financial-results" rel="noreferrer noopener">reported quarterly</a> GAAP earnings of 44 cents per share, beating the analyst <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus estimate of 39 cents</a>.



Quarterly revenue reached $3.03 billion, missing the $3.09 billion analyst consensus estimate. The revenue grew by 21% year-over-year.



Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/25/05/45205666/doordashs-growth-picks-up-speed-despite-holiday-headwinds-analyst" rel="noreferrer noopener">DoorDash&#8217;s Growth Picks Up Speed Despite Holiday Headwinds: Analyst</a>



Total Orders increased 18% year-over-year to 732 million and Marketplace GOV increased 20% year-over-year to $23.1 billion.



U.S. Marketplace helped drive monthly active users (MAUs) for the quarter, which was consistent with Y/Y growth in December 2024.



International MAUs continued to grow at a double-digit pace throughout&nbsp;the quarter. In its Wolt-branded countries, DoorDash more than doubled Wolt+ members exiting the quarter compared to the end of the first quarter of 2024.



<h2 class="wp-block-heading">Outlook</h2>



DoorDash <a target="_blank" href="https://www.benzinga.com/general/restaurants/25/02/43641832/doordash-shares-climb-after-solid-q4-results-total-orders-grew-19-gov-increased-21" rel="noreferrer noopener">reiterated it expects</a> adjusted EBITDA as a percentage of Marketplace GOV to increase from second-quarter to third-quarter.



<h2 class="wp-block-heading">Acquisitions</h2>



DoorDash is <a target="_blank" href="https://www.benzinga.com/25/05/45214764/doordash-to-boost-global-presence-with-nearly-39-billion-acquisition-of-uks-deliveroo" rel="noreferrer noopener">preparing to acquire</a> Deliveroo, a U.K.-based food delivery firm, in a $3.9 billion deal.



DoorDash also <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45217210/doordash-announces-agreement-to-acquire-sevenrooms-to-enhance-commerce-platform-offerings" rel="noreferrer noopener">agreed to acquire</a> SevenRooms, a software company based in New York City for $1.2 billion, CNBC <a target="_blank" href="https://www.cnbc.com/2025/05/06/doordash-announces-1point2-billion-sevenrooms-deal-misses-revenue-expectations.html" rel="noreferrer noopener">reported</a> Tuesday.&nbsp;



The acquisition will likely close during the second half of 2025, subject to customary closing conditions and regulatory approvals.



DoorDash held $4.71 billion in cash and equivalents as of March 31, 2025.



DASH Price Action: DoorDash stock is down 5.19% at $194.75 premarket at last check on Tuesday.&nbsp;&nbsp;



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/05/45210096/datadog-acquires-eppo-to-boost-product-analytics-and-simplify-ai-workflows" target="_blank" rel="noreferrer noopener">Datadog Acquires Eppo To Boost Product Analytics And Simplify AI Workflows</a></li>
</ul>



Photo by Diego Thomazini on Shutterstock

Guidance

DASH

DoorDash Is Hungry For Growth: Q1 Orders Jump 18%, Plans 2 Big Acquisitions To Expand International Presence

President Donald Trump signed an executive order Monday directing the Food and Drug Administration to accelerate approvals for domestic pharmaceutical manufacturing facilities as his administration prepares to <a href="https://www.benzinga.com/25/04/44708204/trump-hints-at-major-tariff-on-imported-pharmaceuticals-us-pharma-stocks-tumble-in-wednesday-pre-market">announce new tariffs on imported medicines</a> within two weeks.



What Happened: The executive order aims to streamline the drug manufacturing approval process by eliminating unnecessary requirements and reducing the time needed to approve new U.S. production sites. 



According to the White House, building pharmaceutical manufacturing capacity currently takes &#8220;five to 10 years,&#8221; which it called &#8220;unacceptable from a national-security standpoint.&#8221;



&#8220;We don&#8217;t want to be buying our pharmaceuticals from other countries because if we&#8217;re in a war, we&#8217;re in a problem, we want to be able to make our own,&#8221; Trump said in a White House fact sheet.



See Also: <a href="https://www.benzinga.com/markets/25/05/45213562/peter-schiff-challenges-us-dominance-after-elon-musks-china-consumption-narrative-a-50-drop-in-the-dollar-could-supercharge-chinas-global-consumer-base">Peter Schiff Challenges US Dominance After Elon Musk&#8217;s China Consumption Narrative — A 50% Drop In The Dollar Could Supercharge China&#8217;s Global Consumer Base</a>



Why It Matters: The executive order comes as U.S. pharmaceutical manufacturing has significantly declined over decades, with most active drug ingredients now produced in China and other countries. According to EY analysis, reported by Reuters, the U.S. imported $203 billion in pharmaceutical products in 2023, with 73% coming from Europe, primarily Ireland, Germany and Switzerland.



For investors, this points to broader <a href="https://www.benzinga.com/general/biotech/25/02/43982604/eli-lilly-doubles-capital-spending-on-us-drug-manufacturing-with-50-billion-target">shifts in the pharmaceutical secto</a>r, with companies such as Eli Lilly and Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>), and AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) already unveiling new domestic manufacturing plans in reaction to the looming tariff threats.



The pending tariffs could significantly impact <a href="https://www.benzinga.com/personal-finance/25/04/45029761/experts-warn-tariffs-could-negatively-impact-pretty-fragile-supply-of-generic-drugs">generic drug makers</a>, which provide 90% of U.S. prescriptions, possibly worsening existing shortages. There are already over 250 drug shortages nationwide, down from 323 in early 2024 but still concerning for healthcare stakeholders.



Mark Cuban, whose Cost Plus Drugs company sells medications at substantial discounts, warned the tariffs could force <a href="https://www.benzinga.com/news/25/04/44658207/mark-cuban-says-cost-plus-drugs-faces-price-hike-threat-tariffs-would-force-us-to-pass-costs-directly-to-consumers">price increases on many drugs</a>: &#8220;If we have a high tariff on drugs coming from India, we won&#8217;t have a choice but to pass those costs on to consumers.&#8221;



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/05/45213365/maxine-waters-to-obstruct-cryptocurrency-hearing-plans-shadow-hearing-instead">Maxine Waters Plans Walkout From Crypto Hearing, Will Host &#8216;Shadow Hearing&#8217; Opposing Trump Family Ventures: Report</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.



Image Via Shutterstock

Health Care

ABBV

Trump Orders FDA To Fast-Track US Drug Production As Tariff Threat Looms On Imported Medicines: Cites National Security Concerns

U.S. stock futures fell on Tuesday after snapping a nine-day winning streak on the S&amp;P 500 index. Futures of major benchmark indices were lower in premarket.



After a remarkable 20-year high winning streak, the S&amp;P 500 saw stocks decline on Monday. This reversal was triggered by two key statements from President Donald Trump: his proposal for a 100% tariff on <a href="https://www.benzinga.com/general/entertainment/25/05/45201601/trump-wants-movies-made-in-america-again-heres-what-tariffs-on-films-could-mean-for-disney-netflix-stock">foreign-made films</a> and his announcement that he would not be discussing trade with Chinese President Xi Jinping this week. 



Investors are keeping an eye on the Federal Reserve&#8217;s decision on interest rates, which is slated to be announced on Wednesday.



Meanwhile, the 10-year Treasury bond yielded 4.36% and the two-year bond was at 3.81%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 96.8% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.54%</td></tr><tr><td>S&amp;P 500</td><td>-0.77%</td></tr><tr><td>Nasdaq 100</td><td>-0.91%</td></tr><tr><td>Russell 2000</td><td>-0.98%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.82% to $558.89, while the QQQ declined 1.12% to $480.49, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Energy, consumer discretionary, and information technology sectors led Monday&#8217;s decline on the S&amp;P 500, contributing to the index snapping a nine-session winning streak.



Bucking this trend, consumer staples stocks closed slightly higher.



The S&amp;P 500 rose by 2.9%, the Dow by 3%, and the Nasdaq by 3.4% for the week.



In company news, Skechers U.S.A. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SKX#NYSE">SKX</a>) saw its shares surge over 24% following an acquisition agreement by 3G Capital at $63 per share, while Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>) <a href="https://www.benzinga.com/news/25/05/45198250/tyson-shares-drop-after-mixed-quarter-with-weak-sales-solid-profit">shares fell </a>around 8% after disappointing second-quarter sales.



On the economic front, the ISM services PMI exceeded expectations, rising to 51.6 in April from March&#8217;s 50.8.



The Dow Jones index declined 99 points or 0.24% to 41,218.83, whereas the S&amp;P 500 index fell 0.64% to 5,650.38. Nasdaq Composite ended 0.74% lower at 17,844.24, and the small-cap gauge, Russell 2000, tumbled 0.82% to 2,004.26.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.74%</td><td>17,844.24</td></tr><tr><td>S&amp;P 500</td><td>-0.64%</td><td>5,650.38</td></tr><tr><td>Dow Jones</td><td>-0.24%</td><td>41,218.83</td></tr><tr><td>Russell 2000</td><td>-0.82%</td><td>2,004.26</td></tr></tbody></table></figure>



Insights From Analysts:



WisdomTree senior economist Jeremy Siegel highlights the positive impact of the <a href="https://www.benzinga.com/25/05/45213790/us-dollar-depreciation-is-cushioning-the-impact-of-tariffs-on-corporate-profits-says-expert-heres-how">U.S. dollar&#8217;s decline</a> on multinational earnings this year.



In his weekly commentary, he points out that roughly half of the S&amp;P 500&#8217;s revenue is generated internationally, a factor he believes can mitigate the adverse effects of tariffs on corporate profits.



As Siegel states, "With 40-45% of S&amp;P 500 revenues sourced abroad, that currency translation effect alone could cushion the impact of tariffs on corporate profits."



He further suggests that, "This, alongside hopes of deal-making and eventual tariff de-escalation, is underpinning the market&#8217;s recovery."



Moreover, Siegel remains optimistic about stocks, explaining that markets often overreact to recessions.



He argues, "While earnings may drop if the economy turns south, the long-horizon value of equities should not fall 20–25%, as often happens. If investors finally look beyond the valley into the mountain, the downside could be limited even in a mild recession."



As the Federal Reserve is projected to keep the interest rates steady after the Wednesday&#8217;s meeting, Cooper Howard, director, fixed income strategy at the Schwab Center for Financial Research said, &#8220;The market&#8217;s pricing in between three and four cuts prior to the year-end, but that's aggressive unless the labor market shows further signs of slowing.&#8221;



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul>
<li>The U.S. trade deficit data for March will be out by 8:30 a.m.</li>
</ul>



Stocks In Focus:



<ul>
<li>Marriott International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>) rose 0.62% in premarket on Tuesday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of $2.25 per share on revenue of $6.17 billion.</li>
</ul>



<ul>
<li>Archer-Daniels-Midland Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>) fell 0.63% as Wall Street expects it to report earnings of 67 cents per share on revenue of $21.94 billion before the opening bell.</li>
</ul>



<ul>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) was 0.59% lower as it is expected to report earnings after the closing bell. Analysts expect a quarterly earnings of 94 cents per share on revenue of $7.13 billion.</li>
</ul>



<ul>
<li>Celanese Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CE#NYSE">CE</a>) jumped 5.49% after posting better-than-expected results for its first quarter on Monday. The company said it sees second-quarter adjusted earnings of $1.30 to $1.50 per share, versus market estimates of $1.41 per share.</li>
</ul>



<ul>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) dropped 7.89% despite reporting in-line earnings for its first quarter on Monday. Palantir reported first-quarter revenue of $883.86 million, beating analyst estimates of $862.83 million. The company reported first-quarter adjusted earnings of 13 cents per share, in line with analyst estimates.</li>
</ul>



<ul>
<li>International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) was trading 074% lower after expanding its partnership with Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), down 1.07%. The companies aim to advance agentic AI and hybrid cloud, and also unveil hybrid AI technologies.</li>
</ul>



<ul>
<li>Pony AI Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PONY#NASDAQ">PONY</a>) was 11.34% higher after announcing a strategic partnership with Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) to advance autonomous mobility.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 2.78% to hover around $58.72 per barrel.



Gold Spot US Dollar rose 1.36% to hover around $3,376.57 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.18% at the 99.6530 level.



Asian markets were mixed on Monday. India's S&amp;P BSE Sensex and Australia's ASX 200 indices declined. While China&#8217;s CSI 300, Hong Kong's Hang Seng, Japan's Nikkei 225, and South Korea's Kospi index rose. European markets were also mixed in early trade.



Read Next:



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<li><a href="https://www.benzinga.com/25/05/45214653/uber-could-win-the-robo-taxi-war-says-expert-analyst-predicts-75-gains-on-ride-hailing-cost-drop">Uber Could Win The &#8216;Robo Taxi War,&#8217; Says Expert: Analyst Predicts 75% Gains On Ride Hailing Cost Drop</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Futures

Treasuries

Pre-Market Outlook

ORCL

PONY

UBER

US Stocks Likely To Open Lower After Snapping 9-Day Streak: 'Downside Could Be Limited Even In A Mild Recession,' Says Expert

Gold prices climbed above $3,380 per ounce Tuesday, reaching a new high as investors sought safe-haven assets amid escalating trade tensions. The precious metal gained $90 in Monday&#8217;s session before adding another $45 in early trading.



What Happened: &#8220;Gold is up another $45 so far tonight, trading above $3,380. With today&#8217;s $90 gain, that&#8217;s already $135 within one 24-hour period,&#8221; noted economist Peter Schiff on X. &#8220;Silver is also starting to perk up. It&#8217;s adding another 50 cents to today&#8217;s gains, trading above $33.10. Keep an eye on silver. A breakout is near.&#8221;



The rally comes as President Donald Trump expanded tariffs, threatening 100% tariffs on foreign-produced films and announcing plans for pharmaceutical tariffs in the coming weeks. This follows already imposed steep 145% tariffs on Chinese goods that have rattled global markets.



Silver prices also surged nearly 2% to around $33 per ounce on Tuesday, extending gains from the previous session. In response to a follower suggesting silver needs to top $36 before moving to $50, Schiff replied, &#8220;I&#8217;d say a close above $35 would trigger that move.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Gold is up another $45 so far tonight, trading above $3,380. With today&#39;s $90 gain, that&#39;s already $135 within one 24-hour period. Silver is also starting to perk up. It&#39;s adding another 50 cents to today&#39;s gains, trading above $33.10. Keep an eye on silver. A breakout is near.&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1919574440033055075?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/25/05/45212767/bitcoin-ethereum-flat-dogecoin-dips-even-as-trump-calls-crypto-popular-analyst-says-btc-build-up-good-predicts-eth-uptrend-after-fed-meet">Bitcoin, Ethereum Flat, Dogecoin Dips Even As Trump Calls Crypto &#8216;Popular:&#8217; Analyst Says BTC Build-up Good, Predicts ETH Uptrend After Fed Meet</a>



Why It Matters: Investors now await the Federal Reserve&#8217;s policy decision this week. Despite pressure from Trump to lower rates, the central bank is expected to maintain current interest rates. According to the CME FedWatch tool, markets are pricing in a 97% probability of rates remaining unchanged.



Gold-backed cryptocurrencies have benefited from the metal&#8217;s performance, with PAX Gold (PAXG) and Tether Gold extending their year-to-date gains to over 28%. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has shown comparatively modest growth at just 1.24% year-to-date, now trading around $94,000.



Read Next: 



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<li><a href="https://www.benzinga.com/25/05/45214653/uber-could-win-the-robo-taxi-war-says-expert-analyst-predicts-75-gains-on-ride-hailing-cost-drop">Uber Could Win The &#8216;Robo Taxi War,&#8217; Says Expert: Analyst Predicts 75% Gains On Ride Hailing Cost Drop</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with&nbsp;the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was&nbsp;reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

Bitcoin Critic Peter Schiff Says A 'Breakout Is Near' As Gold Surges Above $3,380, Silver Starts To Perk Up

Leading cryptocurrencies traded flat on Monday as uncertainty about tariffs calmed investors' risk appetite.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-0.26%</td><td>$94,467.01</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-0.25%</td><td>$1,811.62</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.00%</td><td>$0.1697</td></tr></tbody></table></figure>



What Happened: Bitcoin wobbled between the mid-$93,000s and the early $95,000s, with the apex cryptocurrency hitting an intraday high of $95,193.19.



Ethereum also experienced a choppy trading day as it wiggled in the $1,800 region. The second-largest cryptocurrency's trading volume rose 27% in the last 24 hours.



President Donald Trump <a href="https://www.benzinga.com/25/05/45187462/trump-denies-personal-profit-from-memecoin-venture-i-havent-even-looked">endorsed cryptocurrencies</a> in an interview, deeming it a "popular" and "hot" sector.



About $146 million was liquidated from the cryptocurrency market in the last 24 hours, with bullish long bets accounting for $83.75 million.



That said, over $500 million in Bitcoin shorts risked liquidation if the leading cryptocurrency rebounded to $97,000.



The majority of Binance traders with open BTC positions placed bearish bets on Bitcoin, according to the Long/Short Ratio.



On the other hand, the market sentiment shifted to "Greed," according to the Crypto Fear and Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Four (FORM)</td><td>+15.44%</td><td>$2.63</td></tr><tr><td>Biitensor (TAO)</td><td>+8.14%</td><td>$373.58</td></tr><tr><td>DeXe (DEXE)</td><td>+4.00%</td><td>$15.01</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $2.94 trillion, following a minor 0.04% contraction in the last 24 hours.



Stocks snapped their winning run Monday. After nine consecutive days of gains, the S&amp;P 500 closed 0.64% lower at 5,650.38. The Dow Jones Industrial Average slid 98.60 points, or 0.24%, to end at 41,218.83. The tech-focused Nasdaq Composite dipped 0.74%, ending at 17,844.24.



The slide comes after Trump's proposed 100% tariff on <a href="https://www.benzinga.com/general/education/25/05/45187710/peter-schiff-says-trumps-100-tariff-on-foreign-films-pointless-without-targeting-streamingwarns-netflix-subscribers-would-bear-cost">foreign-produced movies</a> sent jitters across the entertainment sector. Shares of Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) lost 0.41% and 1.99%, respectively, during the session.



Meanwhile, the impasse over the trade deal between the U.S. and China prevailed as Trump said <a href="https://www.benzinga.com/news/global/25/05/45188171/china-pushes-for-special-envoys-as-direct-deal-with-trump-deemed-risky-plans-fentanyl-concessions-as-negotiating-leverage-report">he did not plan to talk</a> with Chinese President Xi Jinping.



Investors will now turn their attention to the <a href="https://www.benzinga.com/25/05/45192387/market-bets-on-aggressive-fed-cuts-clash-with-short-rate-market-data-next-fed-chair-could-initiate-cutting-cycle-says-expert">Federal Reserve&#8217;s policy meeting</a>, which starts on Tuesday.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Blockchain analytics firm CryptoQuant highlighted that despite Ethereum's prolonged downtrend, accumulating addresses have not abandoned their strategy, showcasing their long-term belief in the asset.



"Instead, they increased their ETH exposure: on March 10, they held 15.5356 million ETH, and by May 3, this rose to 19.0378 million ETH, a 22.54% increase," CryptoQuant added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">ETH Holders Refuse to Sell: Accumulating Addresses Lower Their Cost Basis "On March 10 they held 15.5356M ETH, and by May 3 this rose to 19.0378M ETH, a 22.54% increase. Behavior reflects structural conviction &amp; clear expectations of short-term appreciation." – By <a href="https://twitter.com/oro_crypto?ref_src=twsrc%5Etfw">@oro_crypto</a> <a href="https://t.co/yx12tC7N0O">pic.twitter.com/yx12tC7N0O</a>&mdash; CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1919322089367937435?ref_src=twsrc%5Etfw">May 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to cryptocurrency analyst Michaël van de Poppe, gold&#8217;s rally indicated a risk-off mindset ahead of Wednesday&#8217;s Federal Reserve meeting.&nbsp;



"Bitcoin build-up is good, expecting to see ETH turn upwards after Wednesday," the analyst predicted.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Rally on Gold indicating that we&#39;re still seeing the risk-off mentality going into the FED meeting on Wednesday. Good signs: Services PMI rolling upwards.<a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> build-up is good, expecting to see <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> turn upwards after Wednesday.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1919484494148686052?ref_src=twsrc%5Etfw">May 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45203946/binance-founder-changpeng-zhao-recounts-prison-hardships-i-was-scared-my-cellmate-had-a-sentence-for-murdering-two-guys-at-once">Binance Founder Changpeng Zhao Recounts Prison Hardships: &#8216;I Was Scared, My Cellmate Had A Sentence For Murdering Two Guys At Once&#8217;</a></li>
</ul>



Photo Courtesy: Mc_Cloud on Shutterstock.com

Bitcoin, Ethereum Flat, Dogecoin Dips Even As Trump Calls Crypto 'Popular:' Analyst Says BTC Build-up Good, Predicts ETH Uptrend After Fed Meet

Despite the old market adage &#8220;Sell in May and go away,&#8221; historical data tells a different story — May has actually been a profitable month for the U.S. stock <a href="https://www.benzinga.com/25/04/45115442/sell-in-may-and-go-away-looks-outdated-as-mayjuly-data-signal-bullish-sp-500-seasonality">market in recent decades.</a>



Over the past 20 years, the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — has posted an average return of 0.6% in May, finishing the month in the green 15 out of 20 times. 



The most substantial gains were recorded in May 2008, up 5.9%, and May 2024, up 5.1%, while the worst performance came in May 2010, with an 8% drop.



Several S&amp;P 500 stocks have consistently outperformed during May, with average returns well above the broader index. Here are five standout names with at least 5% average May returns over the past two decades.



<h3 class="wp-block-heading">5) Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>)</h3>



<ul>
<li>Average May return: +5.8%</li>



<li>Winning ratio: 60%</li>



<li>Best May performance: +29.7% (2014)</li>



<li>Worst May performance: -20.8% (2012)</li>



<li>Next earnings release: July 16, 2025</li>



<li>Notable trend: May is Netflix's third-best performing month after January (14.7%) and October (6.94%).</li>
</ul>



<h3 class="wp-block-heading">4) McKesson Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>)</h3>



<ul>
<li>Average May return: +6.35%</li>



<li>Winning ratio: 90%</li>



<li>Best May performance: +17.9% (2017)</li>



<li>Worst May performance: -9.1% (2018)</li>



<li>Next earnings release: May 8, 2025</li>



<li>Notable trend: Currently riding a 6-year winning streak in May, and it&#8217;s historically McKesson&#8217;s best month of the year.</li>
</ul>



<h3 class="wp-block-heading">3) Take-Two Interactive Software Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>)</h3>



<ul>
<li>Average May return: +6.58%</li>



<li>Winning ratio: 85%</li>



<li>Best May performance: +22.1% (2017)</li>



<li>Worst May performance: -18.3% (2012)</li>



<li>Next earnings release: May 15, 2025</li>



<li>Notable trend: The company has delivered gains in each of the past 12 Mays, making it the strongest month for the stock historically.</li>
</ul>



<h3 class="wp-block-heading">2) Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</h3>



<ul>
<li>Average May return: +7.81%</li>



<li>Winning ratio: 70%</li>



<li>Best May performance: +38.4% (2017)</li>



<li>Worst May performance: -25.16% (2019)</li>



<li>Next earnings release: May 28, 2025</li>



<li>Notable trend: May ranks as Nvidia's second-best month, just behind August, up 8.2%.</li>
</ul>



<h3 class="wp-block-heading">1) Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)</h3>



<ul>
<li>Average May return: +6.58%</li>



<li>Winning ratio: 60%</li>



<li>Best May performance: +41.8% (2013)</li>



<li>Worst May performance: -17.4% (2012)</li>



<li>Next earnings release: May 6, 2025</li>



<li>Notable trend: May is AMD's second-strongest month, trailing only November at 9.5%. </li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/05/45201761">Palantir Smokes S&amp;P 500 Peers With 393% Rally But Overheated Technicals Raise Red Flag Ahead Of Earnings</a></li>
</ul>



Image: Shutterstock

NFLX

NVDA

TTWO

S&P 500 Stocks That Defy 'Sell In May' Myth: 5 Companies With Strong Historical Gains

Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) reported first-quarter financial results after the market close on Monday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/05/b45206388/palantir-reports-q1-2025-revenue-growth-of-39-yy-u-s-revenue-growth-of-55-yy-raises-fy-2025-revenu">of the report</a>.



Q1 Earnings: Palantir reported first-quarter revenue of $883.86 million, beating <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst estimates</a>&nbsp;of $862.83 million. The company reported first-quarter adjusted earnings of 13 cents per share, in line with analyst estimates.



Palantir has now met or exceeded analyst estimates for revenue and earnings in seven straight quarters, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a> data.



Total revenue was up 39% year-over-year as U.S. revenue grew 55% year-over-year to $628 million. U.S. Commercial revenue grew 71% year-over-year to $255 million and U.S. Government revenue climbed 45% year-over-year to $373 million.



Palantir's customer count grew 39% year-over-year and 8% on a quarter-over-quarter basis. The company said it closed 139 deals worth over $1 million during the quarter and 51 deals worth at least $5 million. Palantir generated $310 million in cash from operations and $370 million in adjusted free cash flow in the quarter.&nbsp;



Palantir ended the quarter with $5.4 billion of cash, cash equivalents and short-term U.S. treasury securities.



&#8220;Our Rule of 40 score increased to&nbsp;83%&nbsp;in the last quarter, once again breaking the metric. We are in the middle of a tectonic shift in the adoption of our software,&#8221; said&nbsp;Alex Karp, co-founder and CEO of Palantir.



&#8220;We are delivering the operating system for the modern enterprise in the era of AI. Consequently, we are raising our full-year&nbsp;guidance&nbsp;for total revenue growth to&nbsp;36%&nbsp;and our&nbsp;guidance&nbsp;for U.S. commercial revenue growth to&nbsp;68%.&#8221;



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45202080/stocks-pause-gains-as-treasury-yields-rise-whats-driving-markets-monday">Stocks Pause Gains As Treasury Yields Rise: What&#8217;s Driving Markets Monday?</a>



Outlook: Palantir expects second-quarter revenue to be in the range of $934 million to $938 million versus estimates of $899.12 million.



The company also raised its full-year guidance. Palantir expects full-year 2025 revenue of $3.89 billion to $3.90 billion, up from prior guidance of $3.74 billion to $3.76 billion. Analysts were anticipating full-year revenue of $3.75 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Palantir raised guidance for full-year U.S. commercial revenue, full-year adjusted income from operations and adjusted free cash flow. The company now expects full-year adjusted free cash flow of $1.6 billion to $1.8 billion, up from prior guidance of $1.5 billion to $1.7 billion.



Finally, Palantir continued to guide for positive GAAP operating income and net income in each quarter of 2025.



&#8220;This is a level of surging and ferocious growth that would be spectacular for a company a tenth of our size. At this scale, however, our ascent is, we believe, unparalleled,&#8221; Karp said in a letter to shareholders. 



Palantir executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.



PLTR Price Action: <a href="https://www.benzinga.com/quote/PLTR" target="_blank" rel="noreferrer noopener">Palantir shares </a>were up approximately 64% year-to-date heading into Monday&#8217;s report. The stock was down 9.23% in after-hours, trading at $112.35 at the time of publication Monday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/05/45203793/datadogs-ai-cloud-migration-expanding-product-adoption-drive-analyst-confidence-despite-growth-volatility-concerns">Datadog&#8217;s AI, Cloud Migration, Expanding Product Adoption Drive Analyst Confidence Despite Growth Volatility Concerns</a></li>
</ul>



Image: <a href="https://www.shutterstock.com/g/PoetraRH">Poetra.RH</a>/Shutterstock.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Palantir Technologies Q1 2025 Earnings Call &#x7C; $PLTR" width="500" height="281" src="https://www.youtube.com/embed/WgOqogXV_w4?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>

Palantir Q1 Earnings: Revenue Beat, EPS In Line, Customer Count Up 39%, Company Raises Guidance Citing 'Surging And Ferocious Growth'

Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) will report its first-quarter earnings on Monday. Wall Street expects 13 cents in EPS and $862.83 million in revenues when the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=PLTR" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 392.98% over the past year and 65.29% year-to-date.



Let&#8217;s examine the charts for Palantir stock and how it compares to Wall Street estimates.



Read Also: <a href="https://www.benzinga.com/markets/equities/25/05/45188268/palantir-climbs-above-126-in-overnight-robinhood-trading-so-many-bears-out-there-says-lawrence-mcdonald">Palantir Climbs Above $126 In Overnight Robinhood Trading: &#8216;So Many Bears Out There,&#8217; Says Lawrence McDonald</a>



<h2 class="wp-block-heading">Is Palantir Stock Overheating Ahead Of Q1 Earnings?</h2>



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0505"><img loading="lazy" decoding="async" width="633" height="489" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/05110231/Screenshot-2025-05-05-at-8.18.38-PM.png" alt="" class="wp-image-901670" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/05110231/Screenshot-2025-05-05-at-8.18.38-PM.png 633w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/05110231/Screenshot-2025-05-05-at-8.18.38-PM-300x232.png 300w" sizes="(max-width: 633px) 100vw, 633px" /></a></figure>



<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0505">Chart created using Benzinga Pro</a>



Palantir stock is putting on a show for the bulls. With its share price of $123.20 comfortably perched above its five-, 20-, and 50-day exponential moving averages, the bullish short-term trend is flashing. Even the 200-day simple moving average trails far behind at $64.91, highlighting just how steep the rally has been. Each of these technical signals points in the same direction: up.



Adding fuel to the fire, Palantir's eight-day simple moving average sits at $116.68, well below the current stock price &#8211; a bullish confirmation. The 20-day and 50-day simple moving averages are at $101.04 and $91.94, respectively, further underscoring the strength of momentum. The Moving Average Convergence Divergence (MACD) indicator reads 8.86, another classic sign that buying pressure remains intact.



But before investors jump on the rocket ship, there&#8217;s a note of caution: the Relative Strength Index (RSI) has crossed into overbought territory at 71. While overbought doesn't necessarily mean a pullback is imminent, it suggests the stock may be due for a breather.



Palantir's technicals are undeniably bullish, but with momentum running hot, chasing at these levels might require nimble footwork.



<h2 class="wp-block-heading">Palantir Analysts See 37% Downside</h2>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/PLTR/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on Palantir stock stands at a Neutral currently with a price target of $69.76. Three recent analyst ratings imply a 37.3% downside for Palantir stock, with an average price target of $76.67.



PLTR Price Action: Palantir stock was trading at $123.36 at the time of publication.



Read Next: 



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</ul>



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Palantir Smokes S&P 500 Peers With 393% Rally But Overheated Technicals Raise Red Flag Ahead Of Earnings

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