Latest Market Movements TodayMarket Indexes Surge as US-China Trade Tensions Ease
The stock market is extending its rally today, Tuesday, May 13, 2025, building on yesterday’s impressive gains following the breakthrough in US-China trade relations. Major indexes are continuing their upward momentum after Monday’s surge, which saw the Dow Jones Industrial Average climb nearly 900 points.
As of midday trading, the S&P 500 is up 1.2% to 5,872, the Nasdaq Composite has gained 1.5% to reach 18,025, and the Dow Jones Industrial Average has added another 420 points (1.0%) to 42,458.
The market’s positive sentiment stems from the temporary trade agreement announced on Monday, where the US and China agreed to slash reciprocal tariffs by 115% for 90 days. This brings US tariffs on Chinese goods down to 30% and Chinese tariffs on US imports to 10%.
Tech Stocks Lead the Way as Investors Embrace Risk
Technology stocks continue to lead today’s rally, with several major players posting significant gains. Tesla (TSLA) is up 3.2% today, extending its impressive 4.45% gain from last week.
Apple (AAPL) has added 1.8% today, while Microsoft (MSFT) is up 1.2%. Nvidia (NVDA), a key player in the AI chip sector, has gained 2.3%, continuing its strong performance with a nearly 30% increase year-to-date.
The semiconductor sector remains particularly strong, with the VanEck Semiconductor ETF extending yesterday’s 5% gain with another 2.1% increase today. This sector’s strength reflects growing optimism about AI infrastructure spending and reduced concerns about the impact of tariffs on the technology supply chain.
Upcoming Market Events and Economic Data
Investors are closely watching several key economic reports and market events this week. The Consumer Price Index (CPI) for April is scheduled for release today, providing crucial inflation data that could influence Federal Reserve policy decisions. Later this week, retail sales and the Producer Price Index (PPI) will be released on Thursday, offering additional insights into economic health and inflation trends.
Earnings Season Continues with Notable Reports
Today’s earnings calendar features several significant companies reporting their quarterly results. Sea Limited (SE), JD.com (JD), and CyberArk Software (CYBR) are among the notable firms releasing earnings before the market open.
Other companies reporting today include On Holding (ONON), Tencent Music Entertainment (TME), and Under Armour (UAA). Analysts will be particularly focused on commentary regarding the impact of reduced tariffs on business operations and forward guidance.
What’s Next for Markets?
While the market sentiment has turned decidedly positive following the US-China trade agreement, investors remain cautious about several factors. The temporary nature of the tariff reduction (90 days) suggests that trade tensions could resurface later this year. Additionally, upcoming inflation data could influence the Federal Reserve’s interest rate decisions, potentially impacting market dynamics.
Market strategists suggest that this rally could have staying power if economic data remains supportive and corporate earnings continue to exceed expectations. The reduced trade tensions have particularly benefited companies with significant exposure to China, but broader market participation indicates growing investor confidence in the overall economic outlook.
As we move further into May, market participants will be closely monitoring developments in trade negotiations, economic indicators, and corporate performance to gauge the sustainability of this rally.