Full Market Coverage HereBased on the information I’ve gathered, I’ll now write the market recap article for Friday, May 9, 2025.
Major Indexes Close Slightly Higher as Investors Eye US-China Trade Talks
The U.S. stock market closed modestly higher on Friday, May 9, 2025, as investors remained cautiously optimistic about upcoming trade negotiations between the United States and China. The day’s trading was characterized by measured gains across major indexes, continuing the market’s recovery following President Trump’s recent UK trade deal announcement.
The Dow Jones Industrial Average finished the day up approximately 200 points, building on Thursday’s gains. The S&P 500 inched up 0.1%, while the tech-heavy Nasdaq Composite climbed 0.2%. This marks the third consecutive day of gains for major indexes, though the overall weekly performance remained mixed after Monday and Tuesday’s earlier declines.
Trade Developments Drive Market Sentiment
Market sentiment was largely driven by developments on the international trade front. President Trump’s announcement of a trade deal with the United Kingdom on Thursday continued to bolster investor confidence. The president described the agreement as “full and comprehensive” and suggested it would “cement the relationship between the United States and the United Kingdom for many years to come.”
Attention has now shifted to upcoming US-China trade talks scheduled to begin this weekend. President Trump maintained an optimistic tone about these negotiations, describing them as “substantive” and hinting at potential tariff reductions. “It’s coming down,” he said regarding the 145% tariff on Chinese imports.
Magnificent Seven Performance
The “Magnificent Seven” tech stocks showed mixed performance on Friday:
– Microsoft (MSFT) gained 2.8%, continuing its strong performance after beating earnings expectations in its fiscal third quarter. The company has reclaimed its position above both the 50-day and 200-day moving averages.
– Tesla (TSLA) was among the day’s top performers, surging 3.8% as it attempts to recover from recent losses. Despite the gains, the electric vehicle manufacturer remains approximately 40% below its all-time high set in December.
– Apple (AAPL) declined nearly 4% following its earnings report, despite posting better-than-expected March-quarter results. Investors continue to weigh the impact of potential tariffs on hardware sales and legal challenges to its services business.
– Nvidia (NVDA) jumped 3%, attempting to move decisively above its 50-day moving average for the first time since February.
– Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN) all posted modest gains between 1-2%.
Economic Data and Upcoming Events
Friday’s economic calendar was relatively light, but several key data points were released internationally. China reported a trade surplus of $96.18 billion for April, exceeding consensus expectations of $89 billion. Chinese exports rose 8.1% year-over-year, significantly outpacing forecasts of 1.9% growth.
Investors are now looking ahead to several important economic events next week:
– Chinese inflation data will be released on Saturday, May 10, with analysts expecting the inflation rate to remain at -0.1% year-over-year.
– Federal Reserve officials, including John Williams and Thomas Barkin, are scheduled to deliver speeches that could provide insights into future monetary policy decisions.
– The economic calendar for next week is relatively light in terms of major U.S. data releases, allowing market participants to focus primarily on trade developments and corporate earnings.
Market Outlook
Looking ahead, market analysts suggest that the outcome of the US-China trade talks will be the primary driver of market sentiment in the coming week. “With US-China talks set to begin this weekend, the only clear certainty for next week is that any signs of progress — or a lack thereof — will influence market sentiment,” noted market observers.
Despite the recent recovery, markets continue to be sensitive to President Trump’s evolving stance on trade policy. Earlier this week, stocks retreated from historic gains after the president threatened new tariffs on foreign-shot movies and expressed reluctance about speaking with Chinese President Xi, demonstrating how quickly market sentiment can shift based on trade rhetoric.
As the trading week concludes, investors remain cautiously optimistic but vigilant about potential volatility as international trade negotiations unfold over the weekend and into next week.