Market Pulse: Wall Street Extends Rally as Fed Holds Rates Steady and Earnings Season Continues
Major Indexes Continue Upward Momentum on May 8
The U.S. stock market continued its positive trajectory on Thursday, May 8, 2025, as investors digested yesterday’s Federal Reserve decision to maintain interest rates and processed ongoing earnings reports. The S&P 500 (^GSPC) is trading at 5,631.28, up 0.43% from the previous session, extending its recent gains.
Market sentiment remains cautiously optimistic following Fed Chair Jerome Powell’s comments that the central bank need not be in a “hurry” to cut interest rates, flagging broad uncertainty around economic conditions. “My gut tells me that uncertainty about the path of the economy is extremely elevated and that the downside risks have increased,” Powell stated during yesterday’s press conference.
The CBOE Volatility Index, often referred to as the market’s fear gauge, fell 1.21% to 23.55, indicating slightly reduced investor anxiety despite ongoing geopolitical and economic uncertainties.
Sector Performance and Notable Stock Movements
Technology stocks continue to lead the market, with the sector up 8.77% on the S&P 500.
Walt Disney Company (DIS) shares surged nearly 10% yesterday, powering the Dow’s gains after reporting strong quarterly results.
Apple (AAPL) is among today’s decliners, down 1.38% to $196.30, while other notable losers include Dow Inc. (DOW), down 1.49%, and UnitedHealth (UNH), which fell 1.11%.
Upcoming Market Events and Earnings Releases
Investors are closely watching several key earnings reports scheduled for release today. Shopify Inc. (SHOP) is expected to report a 41.67% increase in earnings per share compared to the same quarter last year.
The earnings calendar remains packed, with 954 companies scheduled to report results today, following 1,361 reports yesterday.
Market Outlook and Trade Negotiations
Markets have cautiously welcomed news that top US and Chinese officials will meet this weekend for the first major trade talks since President Trump hiked tariffs on Chinese imports to 145% in April.
When asked during a press conference yesterday if he would lower tariffs on China to foster more productive negotiations, Trump responded bluntly, “no.”
Looking Ahead
As we move deeper into May, investors continue to monitor the balancing act between strong corporate earnings, particularly in the technology sector, and macroeconomic concerns including inflation, interest rates, and international trade tensions. While major indexes have recovered some ground in recent sessions, the year-to-date performance remains mixed, with the Nasdaq down 8.12% and the S&P 500 down 4.26% since January.
With the Federal Reserve maintaining its wait-and-see approach and ongoing trade negotiations with China, market volatility may persist in the coming weeks as investors continue to navigate this complex economic landscape.
