U.S. Stock Market Summary for Tuesday, May 13, 2025

Major Indices

• S&P 500: +0.72% to 5,886.55
• Dow Jones Industrial Average: -0.64% to 42,140.43
• Nasdaq 100: +1.58% to 21,197.70
• Russell 2000: +0.49% to 2,102.35

Market Overview

U.S. stocks closed higher on Tuesday, extending their recent rally as easing inflation data and improving U.S.-China trade relations lifted investor sentiment. The S&P 500 and Nasdaq posted their second consecutive day of gains, while the Dow underperformed, dragged down by heavy losses in healthcare. Strong earnings and a tech-led rally, sparked by major semiconductor deals, further fueled optimism.

Sector Highlights

Technology stocks led the market higher. Nvidia jumped 6% after announcing a multi-billion dollar semiconductor supply agreement with Saudi Arabia’s Humain, driving gains across the chip sector. AMD and other AI-focused companies also saw strong demand. Coinbase surged 24% on news of its inclusion in the S&P 500 index. Solar energy stocks rallied after the U.S. House Republicans proposed a more favorable tax policy.

In contrast, Healthcare struggled. UnitedHealth Group plummeted nearly 18% after withdrawing its annual guidance and announcing the resignation of its CEO, weighing heavily on the Dow.

Economic Snapshot

April’s Consumer Price Index (CPI) rose by 0.2% month-over-month, coming in below market expectations. Year-over-year inflation slowed to 2.3%, the lowest since 2021. The data suggested easing price pressures, bolstering speculation that the Federal Reserve may consider rate cuts later this year. Bond yields edged slightly higher, with the 10-year Treasury yield rising to 4.48%.

Expert Commentary

Market strategists, including those at Goldman Sachs, raised their S&P 500 targets, citing stronger-than-expected earnings and easing trade tensions. Goldman now sees the S&P 500 reaching 6,100 within six months, supported by projected earnings growth of 7% annually. Analysts noted that recent data reduced fears of stagflation and suggested the market could sustain further gains if macro conditions remain supportive.

Government & Political Notes

The U.S. and China reached a temporary trade truce, reducing tariffs on each other's goods for 90 days while negotiations continue. Tariffs on Chinese goods were cut from 145% to 30%, and on U.S. goods from 125% to 10%. While this eased immediate concerns, analysts warned that uncertainty remains until a permanent deal is reached. Meanwhile, President Trump renewed pressure on the Federal Reserve to cut interest rates, citing falling prices across key consumer categories.

Conclusion

Tuesday’s market reflected growing investor confidence amid easing inflation and improved trade relations. While tech stocks fueled gains, sectoral risks remain, highlighted by weakness in healthcare. Going forward, market direction is expected to hinge on further economic data, the outcome of U.S.-China negotiations, and monetary policy signals from the Federal Reserve.