Stock Market Struggles Midday as Moody Downgrade Rattles Wall Street

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•  19 May 2025
 

the Nasdaq is down 0.4%, the S&P 500 is off about 0.2%, and the Dow is clinging to the flatline. The big story shaking things up? Moody’s just downgraded the U.S. credit rating from Aaa to Aa1, pointing to rising federal debt and growing uncertainty tied to the ongoing tariff war. That’s sent shockwaves through the market, pushing bond yields higher — the 30-year Treasury yield is now above 5%.

Treasury Secretary Janet Yellen was quick to downplay the move, calling Moody’s downgrade a “lagging indicator.” She made it clear that the administration isn’t rushing to respond but warned that if trade partners don’t return to negotiations soon, tariffs could snap back to their pre-pause levels.

Among today’s standout movers is Novavax ($NVAX), which is absolutely on fire up 18% in midday trading. It’s catching heavy volume, and traders are eyeing renewed momentum behind its vaccine and biotech pipeline.

On the flip side, Palantir ($PLTR) is under pressure, down over 3% to $124. That’s despite an eye-popping 499% gain over the past year and 71% just in 2025. With such a meteoric rise, some profit-taking is expected. But with Moody’s downgrade looming over the tech sector, risk premiums are climbing, and growth names like Palantir are feeling the heat.

Tesla ($TSLA) is also sliding, down more than 3% to $334. Investors are bracing for weak weekly sales data from China, a critical market for the EV giant. Add to that a 13% drop in April U.S. sales and a 49% plunge in key European markets last month and the pressure’s building. Tesla is also facing stiff competition from Chinese automakers like BYD, plus logistical and regulatory headwinds that aren't going away anytime soon.

Nvidia ($NVDA) is slipping too, down slightly to $132, after CEO Jensen Huang announced at Computex that Nvidia will open up its AI server platform to rivals like Qualcomm and Marvell. While the move strengthens Nvidia’s long-term AI leadership, the short-term fear is erosion of its competitive edge.

Super Micro Computer ($SMCI) is down nearly 2.5% today, trading around $44. Still, it’s up a solid 44% from just last week — driven by demand for AI-optimized servers. That said, it’s still more than 60% off its all-time high from March 2024, so volatility remains the name of the game.

Walmart ($WMT) is losing ground as well, now at $96. President Trump criticized the company for using tariffs as an excuse to raise prices, and Walmart itself warned that higher import costs could affect pricing and margins. Still, the retail giant is holding onto strong e-commerce growth and a commanding market share up 47% over the past year.

Despite mixed headlines, some solar and quantum names are pushing higher. SolarEdge has jumped 5.7% midday, with earlier reports showing a surge of up to 16%.

We’ll be watching closely how the market finishes this turbulent session. So far, the tone is cautious and that Moody’s downgrade isn’t going away anytime soon.