Key takeout
- The S&P 500 dropped 0.7% on Friday, May 23, 2025, as tariffs on smartphones and other major trading partners gained attention ahead of the Memorial Day weekend.
- Deckers’ stock and Roth Store’s shares fell after the footwear company decided not to offer year-round guidance, citing tariff uncertainties.
- Intuit’s shares surged after Turbotax’s parent company exceeded quarterly estimates, amid concerns that a House budget bill could threaten the free IRS tax filing program.
Major US stock indexes declined on the final trading day of the week as President Donald Trump adopted a more aggressive stance on trade, specifically targeting Apple (AAPL) and the European Union through early morning social media posts.
The S&P 500 experienced its fourth consecutive negative trading session on Friday, posting a 0.7% loss. The Dow fell by 0.6%, and the Nasdaq decreased by 1.0%.
Shares of Deckers Outdoor (Deck) plummeted by 20%, losing much of their value in the S&P 500. The company, known for brands like Hoka and Ugg, refrained from providing full-year guidance for fiscal year 2026, citing uncertainties with tariffs and trade policies. With a significant manufacturing presence in China, Deckers’ sales forecast for the first quarter did not meet expectations.
Concerns about stagnant subscription revenues affected stocks of cloud software provider Workday (WDAY). While the company exceeded sales and profit expectations, it cautioned that enterprise clients might reduce spending on human capital management software. Analysts also noted potential pricing pressures due to increasing competition in HR and financial management software.
Discount retailer Ross Store (ROST) decided against issuing year-round guidance, highlighting the uncertainty around tariffs and their potential effects on business. The CEO indicated that high tariffs could hurt profitability, as most products sold are sourced from China, even though direct imports comprise a smaller portion of goods. Consequently, Ross shares dropped by 9.8% on Friday.
On the other hand, Intuit (INTU), a tax and accounting software company, saw its shares rise 8.1%, helping the S&P 500 maintain some positive momentum. The owners of Turbotax and Credit Karma exceeded their third-quarter sales and profit forecasts, and their increased full-year expectations also came in above consensus. Analysts praised the results, with several firms boosting their stock price targets. Intuit may also benefit from the proposed elimination of the free IRS direct tax return system outlined in a recent House budget proposal.
As for the House Tax and Expenditure Bill moving towards the Senate, it includes the removal of Green Energy Incentives, which may dampen prospects for renewable energy companies. Nevertheless, some industry players managed to recover partially on Friday, such as Enphase Energy (ENPH), which rose 4.3%, and AES Corp. (AES), a utility specializing in renewable electricity, which saw a 3.7% decline.
Finally, CrowdStrike (CRWD) saw a 2.6% increase on Friday, reaching a record closing price. The cybersecurity firm’s reputation for outperforming in identity theft protection and response has been bolstered. Earlier in the week, CrowdStrike announced its integration into the enterprise AI ecosystem powered by NVIDIA’s (NVDA) Blackwell infrastructure, utilizing its own AI tools to address vulnerabilities in AI operations.
