Stock Market Live UpdatesMarket Indexes Continue Impressive Rally
The U.S. stock market extended its winning streak on Friday, May 16, 2025, with the S&P 500 rising for the fifth consecutive session. Building on Thursday’s gains when the index closed higher for the fourth straight day, today’s performance reflects continued investor optimism following the recent U.S.-China trade truce.
By market close, the Dow Jones Industrial Average climbed approximately 0.5%, adding to its previous day’s gain of 270 points.
Tech Stocks Lead the Charge
Technology stocks continued to power the market’s upward momentum. Nvidia (NVDA) maintained its strong performance, inching higher after crossing the $3 trillion market cap threshold earlier this week.
Other notable tech movers included:
– Super Micro Computer (SMCI) surged 8%, leading S&P 500 gainers and extending its weekly gain to nearly 40%
– Advanced Micro Devices (AMD) rose over 2%, building on momentum from its expanded $10 billion share repurchase program announced Wednesday
– Tesla (TSLA) added approximately 1%, continuing its strong weekly performance
– Alphabet (GOOG) gained about 2%
However, not all tech stocks participated in the rally. Applied Materials (AMAT) tumbled nearly 7% after reporting quarterly revenue below Wall Street expectations, citing slumping sales in China.
Economic Backdrop Supports Market Confidence
The market’s continued strength comes amid a favorable economic backdrop. Recent economic indicators have reinforced confidence that the U.S. economy remains on solid footing, despite lingering concerns about potential tariff impacts on growth and corporate profits.
Last week’s Consumer Price Index report showed inflation pressures eased, with April recording the slowest annual rate of inflation since 2021.
Major Corporate News and Stock Movements
Beyond tech, several significant corporate developments influenced today’s trading:
– Charter Communications (CHTR) gained approximately 2% after announcing a deal to acquire privately held rival Cox Communications, a move that would combine two of the largest U.S. cable providers
– Novo Nordisk (NVO) shares dropped 3% following the surprise announcement that the CEO of the Danish pharmaceutical company, maker of popular weight-loss drugs Ozempic and Wegovy, is stepping down
Upcoming Market Events to Watch
Investors should keep an eye on several important earnings reports expected in the coming days. Companies reporting include:
– Walmart (WMT), with an expected earnings move of ±4.82%
– Alibaba (BABA), with an expected earnings move of ±5.99%
– Applied Materials (AMAT), with an expected earnings move of ±5.51%
– Take-Two Interactive (TTWO), with an expected earnings move of ±6.05%
– Deere & Company (DE), with an expected earnings move of ±5.05%
Market Outlook
The impressive market rally has prompted several Wall Street strategists to raise their year-end targets for the S&P 500. Goldman Sachs recently increased its projection to 6,100 from 5,900, while Yardeni Research boosted its forecast to 6,500 from 6,000.
“We raise our S&P 500 return and earnings forecasts to incorporate lower tariff rates, better economic growth, and less recession risk than we previously expected,” Goldman Sachs chief U.S. equity strategist David Kostin wrote in a note to clients.
The Bottom Line: As the market heads into the weekend, the positive momentum continues to build following the U.S.-China trade truce. While tech stocks remain the primary drivers of the rally, broader market participation suggests investors are increasingly confident about economic prospects despite lingering concerns about tariff impacts. With key earnings reports on the horizon and renewed optimism from major Wall Street firms, market participants will be watching closely to see if this impressive winning streak can extend into next week.