Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Tuesday, May 20

The U.S. financial markets are currently still reacting to the recent downgrade of the country's sovereign credit rating by Moody's from Aaa to Aa1, which has raised concerns about rising fiscal deficits and long-term debt sustainability. This development is contributing to a weaker sentiment around the U.S. dollar as investors assess its implications for future interest rates and economic growth.

In Europe, stock indices such as Germany’s DAX have shown positive movement amid easing trade tensions following an agreement between the UK and EU on various issues, including defense spending post-Brexit. Additionally, producer prices in Germany fell more than expected in April due primarily to declining energy costs, indicating potential challenges ahead for inflation targets within Eurozone economies.

Meanwhile, China's central bank cut key lending rates —marking their first reduction since October—as part of efforts aimed at stimulating economic activity amidst ongoing global trade uncertainties with the United States. The People's Bank of China lowered both one-year and five-year loan prime rates while also signaling continued support through loose monetary policy measures moving forward.

AUD/USD [-0.9%]
The Australian Dollar (AUD) has weakened significantly today, primarily due to the Reserve Bank of Australia's (RBA) decision to cut its benchmark interest rate by 25 basis points to 3.85%. This adjustment reflects ongoing economic uncertainties and aims to manage inflation risks. The RBA's interest rate decision for May, maintaining the rate at 3.85%, aligns with market expectations, marking a decrease from the previous rate of 4.10%. The recent cash rate cut represents the lowest borrowing costs since May 2023 and typically leads to significant movements in the AUD/USD exchange rate. Currently, AUD/USD has moved down by 0.6% since Monday.

iShares Silver Trust (SLV) [+0.9%, +120.1M]
iShares Silver Trust (SLV) has seen a price increase of 0.9% since Monday. Silver prices have risen approximately 0.8% today, influenced by Moody's downgrade of the U.S. sovereign credit rating, which has led to a decline in the U.S. Dollar. This decline typically bolsters demand for silver as a safe haven asset. Additionally, expectations of further interest rate cuts from central banks, including Australia's Reserve Bank, may support precious metals prices by lowering opportunity costs associated with holding non-yielding assets like silver. Concurrently, platinum has risen by 1.72%, reflecting broader market dynamics that often affect precious metals simultaneously. Social media discussions suggest that if silver is tested within the range of $29.9 to $31.2, it may attract buyers, hinting at a potential three-wave rally for SLV.

HD | +2.2% |+8.3B
Home Depot Inc | Home Improvement Retail
Home Depot Inc reported its first-quarter results, revealing total revenue of $39.86 billion, exceeding analyst expectations of $39.31 billion and reflecting a year-over-year increase of 9%. Adjusted earnings per share (EPS) came in at $3.56, slightly below the consensus estimate of $3.60, down from $3.67 in the prior year. Comparable sales declined by 0.3%, though U.S. same-store sales rose by 0.2%. The company reaffirmed its fiscal 2025 guidance, projecting total sales growth of approximately 2.8% and comparable sales growth of about 1%. Notably, Home Depot's CFO announced that the company will not raise prices due to tariffs. The stock has seen a price increase of 2.2% in pre-market trading, aligning with significant upward movement in the Home Improvement Retail sub-sector.

BILI | +4.6% | +353.9M
Bilibili Inc | Interactive Home Entertainment
Bilibili Inc. reported its Q1 2025 financial results, achieving an adjusted earnings per share (EPS) of 0.85 renminbi, surpassing the analyst estimate of 0.52 renminbi by 0.33 renminbi. Revenue for the quarter reached 7 billion renminbi, exceeding the consensus estimate of 6.91 billion renminbi and reflecting a year-over-year increase of 24%. The company reported a net loss of 10.7 million renminbi, narrowing significantly by 99% from the previous year. Additionally, adjusted net profit was 361.5 million renminbi, a turnaround from an adjusted net loss of 455.9 million renminbi in the prior year. Average daily active users rose to 107 million, with advertising revenues increasing by 20% year-over-year and mobile game revenues surging by 76% year-over-year. Following the earnings announcement, BILI's stock price moved up by 10%.

TCOM | -4.0% | -1.7B
Trip.com Group Ltd | Hotels, Resorts & Cruise Lines
Trip.com Group Ltd reported its Q1 earnings, revealing a non-GAAP EPS of RMB 5.96, slightly above the consensus estimate of RMB 5.54 but down from RMB 6.00 year-over-year. Revenue reached RMB 13.83 billion, closely aligning with analyst expectations of RMB 13.82 billion and significantly increasing from RMB 11.91 billion in the previous year. However, adjusted earnings per ADS of $0.82 missed estimates of $0.86, marking a decrease from last year’s earnings of $0.83. Following the earnings announcement, shares of Trip.com dropped significantly, reflecting market sentiment surrounding the missed earnings expectations despite strong revenue growth. Social media discussions highlighted mixed reactions, with some users noting the revenue beat while others pointed to the stock's decline following the bottom-line miss. The company maintains a robust cash position of $12.8 billion as of the quarter's end.

FDX | -1.7% | -943.2M
FedEx Corp | Air Freight & Logistics
FedEx Corp. has announced significant leadership changes as part of its plan to separate its FedEx Freight division, expected to be completed by June 2026. John A. Smith has been appointed president and CEO of FedEx Freight, while R. Brad Martin will serve as chairman of the board for the new entity. Smith brings over 30 years of industry experience and has previously led FedEx Freight, overseeing revenue growth during the pandemic. Martin has been instrumental in the strategic analysis leading to this separation decision. This development has been highlighted on social media, with reports confirming the anticipated spin-off timeline.

GDS | +5.1% | +2.2B
GDS Holdings Ltd | Internet Services & Infrastructure
GDS Holdings Ltd reported robust Q1 results, revealing a net income of RMB 764.1 million and revenues of RMB 2,723.2 million, marking a year-over-year revenue increase of 12%. The gross margin was 23.7%, with adjusted EBITDA reaching RMB 1,323.8 million and an adjusted EBITDA margin of 48.6%. Earnings per share were RMB 3.47, a notable recovery from a loss of RMB 1.96 per share the previous year. The company reaffirmed its revenue guidance for full-year 2025, projecting total revenues between RMB 11.29 billion and RMB 11.59 billion, with adjusted EBITDA expected to range from RMB 5.19 billion to RMB 5.39 billion. Following the earnings announcement, GDS saw an initial surge, with its stock price increasing significantly shortly thereafter.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: