U.S. Stock Market Summary for Wednesday, May 14, 2025

Major Indices

• S&P 500: +0.10% to 5,892.58
• Dow Jones Industrial Average: -0.21% to 42,051.06
• Nasdaq 100: +0.57% to 21,319.21
• Russell 2000: -0.88% to 2,083.80

Market Overview

U.S. stocks ended mixed on Wednesday as technology shares extended their outperformance, led by Nvidia’s strong rally following a major AI chip deal with Saudi Arabia. Broader market gains were capped by investor caution ahead of key economic data and Federal Reserve comments expected later this week. Despite a recent pause in the U.S.-China trade conflict boosting early sentiment, concerns over the durability of the market’s sharp rebound from April’s lows weighed on broader indices.

Sector Highlights

Technology:
Nvidia surged over 4% after announcing a significant AI chip supply deal with Saudi Arabia, while AMD gained more than 4% on the back of a $6 billion share buyback announcement. Super Micro Computer soared 16% after securing a multi-year data center partnership with DataVolt. Boeing also advanced after securing a record-breaking aircraft order from Qatar Airways.

Retail:
American Eagle Outfitters fell 6.4% after withdrawing its financial forecast due to disappointing first-quarter results.

Economic Snapshot

The U.S. economy continues to show mixed signals. While manufacturing activity contracted in April, as indicated by an ISM PMI reading of 48.7%, jobless claims remain low and wage growth continues to support household spending. Bond markets adjusted expectations for Fed rate cuts, with the 10-year Treasury yield rising to 4.53%. Investors await upcoming data on producer prices, retail sales, and Walmart’s earnings for further direction.

Expert Commentary

Analysts highlighted the market’s overbought conditions after a rapid rebound. Mark Hackett of Nationwide cautioned that without accelerating growth, the market’s short-term upside may be limited. Matt Maley of Miller Tabak noted that a brief consolidation is normal after such a strong run. Meanwhile, Wells Fargo’s Christopher Harvey remains bullish with a 2025 S&P 500 target of 7,007, citing AI-driven productivity gains and moderating inflation.

Government & Political Notes

President Trump’s recently announced "Liberation Day" tariffs continue to draw legal and economic scrutiny amid fears of inflationary pressures and supply chain disruptions. However, progress in U.S.-China trade talks suggests that resolution may be within reach.

Conclusion

The U.S. stock market maintained its resilience on Wednesday, supported by strength in technology and corporate deal-making. However, investor caution persists amid economic uncertainty and geopolitical risks. Upcoming economic reports and Fed commentary will be critical in determining the market’s next move in the weeks ahead.