S&P 500 Falls for Second Day as Palantir and Pharmaceuticals Drop
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 prepared for tomorrow’s Federal Reserve announcement. According to Investopedia, the Dow Jones Industrial Average also slipped by about 1%, while 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.
As reported by Investopedia, the decline was led by a drop in Palantir’s (PLTR) stock, which fell 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. Despite a better-than-expected 39% jump in quarterly revenue and a raised 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.
Pharmaceutical stocks were also under pressure, with Vertex Pharmaceuticals (VRTX) 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. Investopedia notes that Moderna was down around 12%, while Regeneron Pharmaceutical (REGN) was down more than 7%, Eli Lilly (LLY) sank almost 6%, and Bristol-Myers Squibb (BMY) was down 5%. The FDA’s appointment of Dr. Vinay Prasad, a critic of the U.S. Covid-19 response, as its top vaccine regulator also weighed on the sector.
In contrast, 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. The company beat its quarterly operating revenue forecasts and maintained its 2025 outlook, even though its profits were weaker than expected. Investopedia reports that 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.
Other stocks that performed well on the day included engineering firm Leidos Holdings (LDOS), which was 4.6% higher after its better-than-expected results indicated that the company may not see too much earnings loss from cuts to government spending from programs like the Department of Government Efficiency. Ford Motor (F) shares climbed by 2.7% after it reported quarterly earnings that beat analysts’ expectations but suspended its full-year outlook amid uncertainty about tariffs.
As noted by Investopedia, 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. Super Micro Computer (SMCI) was up by 2.4% ahead of its earnings report, due after markets closed.
In conclusion, the S&P 500 fell for a second straight day as investors digested corporate earnings reports, waited for tariff updates, and readied themselves for tomorrow’s Federal Reserve announcement on interest rates. As reported by Investopedia, the market was impacted by a decline in Palantir and pharmaceutical stocks, but was supported by strong performances from Constellation Energy and Leidos Holdings.
