Stock Market Live UpdatesThe stock market is experiencing a significant rally today, Tuesday, May 13, 2025, following a breakthrough in US-China trade relations that has investors celebrating across global markets. Major indexes continue to build on yesterday’s momentum after both countries agreed to temporarily slash tariffs, marking a substantial de-escalation in trade tensions between the world’s two largest economies.
Major Market Indexes Surge to New Heights
As of midday trading, the Dow Jones Industrial Average has climbed to 42,510.35, up 0.24% from yesterday’s close of 42,410.10. The S&P 500 is trading at 5,872.64, gaining 0.49% and building on yesterday’s impressive 3.26% surge. Meanwhile, the tech-heavy Nasdaq Composite continues its remarkable performance, rising 0.58% to 18,816.92 after yesterday’s 4.35% jump that officially pushed the index into bull market territory – defined as a 20% rise from recent lows.
The market’s strong performance comes after the US and China agreed to a 90-day pause on tariff hikes, with the US reducing duties on Chinese imports to 30% from 145%, and China lowering its levies to 10% from 125%. This temporary trade truce has significantly boosted investor confidence, particularly in technology stocks that rely heavily on global supply chains.
“Magnificent Seven” Lead the Market Rally
The so-called “Magnificent Seven” tech giants continue to drive market gains, with Tesla (TSLA) maintaining its upward trajectory after yesterday’s 6.8% jump that pushed its market capitalization past the $1 trillion mark. Amazon (AMZN) shares, which surged 8.1% on Monday, are showing continued strength as the e-commerce giant benefits from reduced trade tensions.
Apple (AAPL) shares are also performing well after gaining 6.3% yesterday, as the iPhone maker stands to benefit significantly from lower tariffs given that approximately 90% of its devices are manufactured in China. Nvidia (NVDA), which is approaching a $3 trillion market capitalization, continues to attract investor interest ahead of its earnings report scheduled for May 28.
Other tech giants including Meta Platforms (META), Alphabet (GOOGL), and Microsoft (MSFT) are also trading positively, contributing to the broader market’s upward momentum.
Key Economic Data and Earnings Releases Today
Investors are closely watching today’s release of the Consumer Price Index (CPI) for April, a critical inflation indicator that could influence Federal Reserve policy decisions. The previous CPI reading showed a year-over-year increase of 2.4%, with a month-over-month decline of 0.1%.
On the earnings front, several notable companies are reporting results today, including Sea Limited (SE), JD.com (JD), Tencent Music Entertainment (TME), and Nu Holdings (NU). These reports will provide further insights into global consumer spending trends and the health of the digital economy.
Looking Ahead: Market Catalysts to Watch
Market participants are looking forward to additional economic data releases later this week, including retail sales and the Producer Price Index (PPI) scheduled for Thursday. These reports will offer further clues about consumer spending patterns and inflation pressures in the manufacturing sector.
Treasury Secretary Scott Bessent’s comments that talks with China had been “very productive” have further bolstered market sentiment, suggesting potential for longer-term improvements in trade relations. However, analysts note that challenges remain, particularly regarding chip restrictions and other AI-related trade issues that will require further negotiation.
Why Is the Market Up Today?
The primary driver behind today’s market rally continues to be optimism surrounding the US-China trade agreement. Wall Street analysts suggest that reduced tariffs will significantly lower costs for companies with global supply chains, improving profit margins and potentially boosting consumer spending.
Additionally, President Donald Trump’s announcement that he will sign an executive order to introduce a “most favored nation” pricing model for prescription drugs, potentially reducing costs by 30% to 80%, has provided a boost to consumer sentiment.
As global trade tensions ease and corporate earnings continue to show resilience, investors appear increasingly confident in the market’s ability to overcome recent volatility and sustain its upward trajectory through the remainder of 2025.