USA Market Update – May 2025

Analysis, Halal Investment, Market Analyses, Market News |

Assalamu Alaykum,

Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the US from May. Let’s get started.

Stock market updates

May marked a strong rebound for US markets, with all major indices posting solid gains. The S&P 500 surged by 5.49% to close at $5,911, while the Dow Jones climbed 3.72%, ending at $42,270. The Nasdaq led the rally with an impressive 7.86% jump to $19,113.77. Meanwhile, the Russell 2000 soared by 9.53% to $2,163, and the S&P MidCap 400 gained 4.79% to finish at $3,001. A month of robust growth and renewed investor optimism across the board.

  • Elon Musk announced that Tesla is on track to begin a robotaxi trial in Austin, Texas by the end of June 2025, as part of the company’s push into autonomous ride-hailing. The pilot will involve Tesla’s own vehicles operating without drivers, using the latest version of its Full Self-Driving (FSD) technology. While details remain limited, the trial marks a key step toward commercializing Tesla’s robotaxi service and could impact the company’s financial outlook if scaled successfully.
  • Chevron has laid off nearly 800 employees in Texas as part of its integration with Hess Corp following a recent merger. The job cuts primarily affect roles in Houston and are part of a broader restructuring to eliminate redundancies and streamline operations. Chevron stated that affected workers were offered severance and support, with the changes expected to influence cost structures going into the second half of 2025.
  • Ulta Beauty has raised its annual profit forecast following strong first-quarter results, driven by steady consumer demand for beauty products despite economic pressures. The company saw higher sales in its skincare and makeup categories, supported by promotional events and new product launches. Ulta now expects full-year earnings per share between $26.20 and $27.00, up from its previous forecast, with the outlook upgrade expected to positively impact financials through 2025.
  • The US Department of Energy has canceled 24 clean energy projects, including ExxonMobil’s $332 million Baytown hydrogen initiative. The decision reflects a policy shift prioritizing fossil fuel development over Biden-era climate goals. The move affects projects focused on carbon capture and emission reduction, with potential long-term impacts on innovation and green manufacturing.

Top gainer and top loser Halal stocks in the USA

Economic updates

  • Us consumers prices rose 0.2% in April, rebounding from a 0.1% dip in March, the first monthly decline since May 2020 according to the Bureau of Labor Statistics. The gain was lower than the 0.3% increase forecasted by economists. Shelter costs, particularly rents, climbed 0.3% and made up more than half of the monthly CPI increase.
  • On May 13, 2025, President Donald Trump announced that the US will lift its long-standing sanctions on Syria, marking a significant shift in American foreign policy following the fall of former Syrian President Bashar al-Assad in December. The move, made at an investment forum in Riyadh, came alongside news of a massive $600 billion investment pledge from Saudi Arabia into the US economy and a $142 billion arms deal described by the White House as the largest defense cooperation agreement in US history.
  • Federal Reserve Vice Chair Philip Jefferson stated on May 14, 2025, that while recent data shows progress toward the Fed’s 2% inflation target, the outlook has grown uncertain due to potential inflationary effects from new tariffs. April consumer prices rose less than expected, but Jefferson warned that sustained tariff increases could stall disinflation and temporarily push inflation higher. Jefferson also reaffirmed his support for maintaining interest rates at their current moderately restrictive level of 4.25%–4.5%, highlighting the Fed’s readiness to adapt to evolving conditions.
  • US import prices unexpectedly rose 0.1% in April 2025, defying economists’ expectations of a 0.4% decline, driven by a sharp increase in the cost of capital goods despite continued drops in energy prices, according to the Labor Department. Year-over-year, import prices edged up just 0.1%. While imported fuel prices fell 2.6% and food prices were flat, core import prices (excluding food and fuel) rose 0.5%, marking a notable acceleration from March’s 0.1% dip.

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