Yahoo Finance

Key Takeaways

• The S&P 500 slipped 0.8% on Tuesday, May 6, 2025, falling for a second straight day as investors awaited news on U.S. tariff policies and prepare dfor tomorrow’s Federal Reserve announcement.

• Moderna and Vertex Pharmaceuticals shares plunged after pausing a cystic fibrosis clinic trial, while drugmakers also declined on the FDA’s appointment of a new top vaccine regulator.

• Constellation Energy jumped on a strong earnings report elevated by continued strong power demand for AI facilities.

The S&P 500 dropped for a second straight session as investors digested corporate earnings reports, waited for tariff updates and readied themselves for tomorrow’s Federal Reserve’s announcement on interest rates.

The S&P 500 fell 0.8% on Tuesday, while the Dow Jones Industrial Average slipped by about 1% and the Nasdaq was lower by 0.9%. The results marked a second straight day of declines for stocks after a run of nine consecutive winning sessions for the S&P 500 and Dow. Read today's full markets coverage here.

Palantir’s (PLTR) stock dropped by 12%. The AI software firm didn’t deliver strong enough earnings to impress investors after it reported adjusted earnings per share that were in line with analysts' expectations. The company reported a batter-than-expected 39% jump in quarterly revenue and raised its full-year outlook on growing demand for its AI software. Analysts raised questions about its valuation, as the stock price was up over 40% for 2025 and 400% over the past 12 months.

Vertex Pharmaceuticals (VRTX) was down 10% after it paused a cystic fibrosis clinic trial it was conducting with Moderna (MRNA). The delayed trial at Vertex was part of a series of costs that led to worse-than-expected quarterly earnings.

Pharmaceutical stocks were also weighed down by news that the Food and Drug Administration named Dr. Vinay Prasad, a critic of the U.S. Covid-19 response, as its top vaccine regulator. Regeneron Pharmaceutical (REGN) was down more than 7%, while Eli Lilly (LLY) sank almost 6% and Bristol-Myers Squibb (BMY) was down 5%. Moderna was down around 12%.

DoorDash (DASH) stock dropped by more than 7% after it moved up its scheduled earnings result release to this morning, with the food delivery service reporting underwhelming revenue for the quarter. The company said it was buying U.K. firm Deliveroo for nearly $4 billion and restaurant booking platform SevenRooms for $1.2 billion.

Constellation Energy (CEG) shares rose 10% to deliver the best performance in the S&P 500 after the nuclear energy provider continued to benefit from artificial intelligence-driven electricity demand. It beat its quarterly operating revenue forecasts and maintained its 2025 outlook, even though its profits were weaker than expected.  The company also said its $26.6 billion purchase of natural gas and geothermal energy firm Calpine is on track to be completed by the end of the year.