5/19/2025
By Charles Payne CEO & Principal Analyst

It was the second-best week of the year.

• S&P 500 (SPX) +5.3%
• Invesco QQQ Trust (QQQ) 6.8%
• iShares Russell 2000 ETF (IWM) +4.5%

All sectors were higher, with growth leading the way.

The influence of Artificial Intelligence (AI) also lifted advances in Industrials (XLI) and Technology (XLK).

During President Trump’s historic visit, much AI news emanated from the Middle East. I would argue that the trip infused much excitement in America, which was also reflected in the stock market.

It's anecdotal, but the market moved higher each time Trump was on TV last week.

Strong Week

Strong 30-days

It has been a rebound for the ages and defied all the experts. The great news is the reminder that the stock market comes back. Not always this fast, but never worry about the market; worry about being in the proper names.

Downgrade

The market has been under pressure since Friday evening after the close when Moody's announced it was lowering America’s credit rating.

There is so much intrigue around the timing of the news.

In politics, there’s something called the “Friday News Dump.”

Ironically, it’s a maneuver designed to mask or mitigate bad news, but I think Moody’s dump was designed to be illuminated and to fester over the weekend.

What was Moody's motivation for this timing?

When I was growing up in NYC, there was a legendary radio disc jockey named Frankie Crocker.

He would end each show with the same song: Moody’s Mood.

The song was inspired by the classic “In the Mood for Love,” and has been recorded several times by artists such as George Benson and Amy Winehouse.

I can undoubtedly say Moody’s Mood on Friday wasn’t an ode to love.

The more I pondered the move over the weekend, the more one verse in the song stood out in my mind:

“This little dream might fade away.”

Many of us have been concerned about this for a long time. Many dreams have already faded, and the battle is to preserve and rekindle them to their full potential.

We should not be confused by preserving the dream with the current status quo.

But therein lies the challenge.

The American public voted for restoring the American Dream for everyone.

The powers that thrive on how the current financial universe works were able to cast fear and anxiety over attempting to fix unfair trade.

They brilliantly crafted a message that feigned concern about higher prices for baby strollers when they are only concerned about lopsided wealth generation.

In my opinion, Moody’s downgrade was politically motivated.

It could and should have happened at any time during the Biden administration, but it was kept in reserve, perhaps in a little glass box with a sign that reads, "In case of emergency, break glass."

With that in mind, the question is, what is the emergency?

The Federal government just posted a surplus. Indeed, that wasn’t the final straw.

Call me cynical, the cloud of public fear was fading as the stock market rebounded, which is the last thing the powers want.

It reminds me of another part of Moody's Mood, the song:

“I am not afraid, not anymore, not like before.”

Be careful to let those that control the ‘strong’ try to push you out of the market again.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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