"US Stock Market Soars as US-China Tariff Truce Boosts Investor Confidence" Podcast By cover art

"US Stock Market Soars as US-China Tariff Truce Boosts Investor Confidence"

"US Stock Market Soars as US-China Tariff Truce Boosts Investor Confidence"

Listen for free

View show details

About this listen

 As of May 13, 2025, the US stock market experienced a significant rally, driven largely by the recent agreement between the United States and China to temporarily reduce tariffs for a period of 90 days. This development eased fears of a global trade war and boosted investor confidence.

The Dow Jones Industrial Average rose by 2.8 percent, or 1,160.72 points, to close at 42,410.10 points, its highest close since March 26. The S&P 500 surged by 3.3 percent, or 184.28 points, to end at 5,844.19 points, marking its biggest close since March 3. The tech-heavy Nasdaq Composite climbed by 4.4 percent, or 779.43 points, to finish at 18,708.34 points.

Key sectors that performed well include consumer discretionary, technology, and industrials. The Consumer Discretionary Select Sector SPDR jumped by 5 percent, while the Technology Select Sector SPDR climbed by 4.6 percent, and the Industrials Select Sector SPDR added 3.1 percent. Ten out of the eleven sectors of the S&P 500 ended in positive territory.

Today, however, stock futures were mixed, with Dow Jones futures down by 0.5 percent, largely due to a 9 percent drop in UnitedHealth Group shares following the company's decision to suspend its full-year outlook and the announcement of its CEO's departure. S&P 500 futures slipped by 0.1 percent, while Nasdaq futures edged up by 0.1 percent.

The most actively traded stocks included those in the technology sector, with companies like Nvidia and Palantir leading the surge. The biggest percentage gainers were primarily in the technology and consumer discretionary sectors, while the biggest losers included UnitedHealth Group.

Significant market-moving news included the tariff reduction agreement between the US and China, which lowered US tariffs on Chinese imports to 30 percent from 145 percent and China's tariffs on US imports to 10 percent from 125 percent. This agreement has temporarily alleviated concerns about inflation and economic growth.

Looking forward, investors are awaiting the release of the Consumer Price Index for April, which will provide insights into inflationary pressures. Pre-market futures indicate a cautious start to the day, but the overall sentiment remains positive following the recent trade developments.

Key events to watch for tomorrow include further reactions to the inflation data and any updates on the US-China trade negotiations. Important upcoming earnings releases and potential market catalysts will also be closely monitored as investors continue to assess the impact of the temporary tariff reductions.
adbl_web_global_use_to_activate_T1_webcro805_stickypopup
No reviews yet