Stocks on Wall Street remain stationary, poised for notable weekly advancements due to heightened optimism regarding trade negotiations.
Stock Market GFY, Homie!
Stock market heavyweights took a breather on Friday, but they're still on a tear this week, thanks to a temporary truce in the U.S.-China trade war and a cooling off of inflation. But folks were focused on a crucial vote on President Donald Trump's tax bill.
Consumer confidence took a hit, according to data from the University of Michigan. The sentiment index slumped to 50.8 for May, down from 52.2 in April, and one-year inflation expectations shot up to a staggering 7.3%.
Jodey Arrington, the House Budget Committee chairman, gave us a heads-up that the planned vote on the tax bill might face some delays due to some naysayers.
By 10:10 a.m., the Dow Jones Industrial Average had climbed 7.64 points, a minuscule 0.02%, to 42,330.39. The S&P 500 was up 5.46 points, a tad over 0.09%, to 5,922.39. The Nasdaq Composite gained 15.17 points, 0.08%, to 19,127.49. All three indices were gearing up for a solid weekly performance.
The market found its footing earlier in the week, fueled by the trade war ceasefire between Washington and Beijing. The S&P 500 bounced back into the green for the year - the first time it's been in the black since late February - but it's still about 4% off its all-time record high.
Art Hogan, the chief market strategist at B Riley Wealth, said, "The combination of a deal with the UK and taking a step back from the untenable China tariffs certainly lays out a road map that we can get multiple bilateral trade deals accomplished, and that's the largest of the positive catalysts."
Trump and Keir Starmer, the British Prime Minister, announced a small-scale trade agreement last week. Data from earlier in the week showed a slowdown in U.S. retail sales growth and a recovery in consumer prices.
Market watchers were also keeping an eye on comments from Fed policymakers. Richmond Fed President Thomas Barkin was scheduled to spill the beans throughout the day.
Tech giants like Alphabet led the charge, with a 2.4% increase. The information technology sector was on track for an 8% gain this week, mirroring the surge seen when traders realized the White House was serious about dialing back its hostilities with China.
UnitedHealth shares recovered slightly after a 11% nose-dive on Thursday, following a report that the U.S. Department of Justice had launched a criminal investigation into the insurer. Applied Materials slid 6.6% after the chipmaking equipment maker missed revenue estimates for the second quarter. Charter Communications rose 3% after it announced it would buy private rival Cox Communications for $21.9 billion.
On the NYSE, advancing issues outnumbered decliners by a 1.38-to-1 ratio. The S&P 500 registered 13 new 52-week highs with no new lows, while the Nasdaq Composite tallied 42 new highs and 42 new lows.
[1] Source: Various search results suggest that on May 14, 2025, the S&P 500 and Nasdaq experienced positive movements, particularly influenced by gains in shares of companies like Nvidia, Tesla, and AMD. Other factors such as a significant deal by Super Micro Computer and product launches by companies like Enphase Energy contributed to the market's performance. However, specific details on the impact of U.S.-China trade optimism and soft inflation data are not provided in these results.
- The S&P 500 and Nasdaq showed positive movements on May 14, 2025, buoyed by gains in shares of companies like Nvidia, Tesla, and AMD, along with significant deals by Super Micro Computer and product launches by Enphase Energy.
- stocks position in the S&P 500 and Nasdaq grew thanks to a combination of factors, including positive company shares and major deals or product launches.
- Despite the general focus on President Trump's tax bill, it was the growing wealth in the stock market, fueled by economic growth, that seemed to dominate the business and finance news.
- Traders, keeping a close eye on inflation, were pleased to see a cooling off of that economic indicator, which contributed to the growth in the stock market.
- As technology companies like Alphabet led the charge in stock market growth, it's clear that the sector plays a significant role in the market's overall performance.
- Market movements were also influenced by international relations, as a truce in the U.S.-China trade war and small-scale trade agreements with the UK provided positive catalysts for investing.
