See All Market Updates LiveMajor Indexes Surge Following US-China Tariff Rollback
The U.S. stock market posted impressive gains on Tuesday, May 13, 2025, as major indexes continued their upward momentum following the recent breakthrough in US-China trade relations. The Dow Jones Industrial Average surged 2.81% to close at 42,410.10, building on yesterday’s rally of over 1,100 points. The S&P 500 climbed 3.26% to 5,844.19, while the Nasdaq Composite led the gains with a remarkable 4.35% jump to 18,708.34.
This market rally comes after President Trump announced a 90-day pause on aggressive tariffs against China, with duties on imports from both countries set to drop by 115 percentage points. The decision has significantly eased investor concerns about escalating trade tensions that could have hampered economic growth.
Tech Sector Leads Market Gains
Technology stocks were the standout performers on Tuesday, with the sector surging 16.56% on the Nasdaq. Consumer Discretionary and Information Technology sectors also posted strong gains of 8.48% and 8.37%, respectively.
Among the day’s top performers, Amazon (AMZN) shares jumped 8.04%, while Nike (NKE) gained 7.45%. Apple (AAPL) rose 6.22%, and Tesla (TSLA) continued its upward trajectory with a 6.75% increase.
Other notable gainers included Old Dominion Freight Line, which led the Nasdaq with an 11.24% increase, followed by Microchip Technology (MCHP) at 10.22% and Regeneron Pharmaceuticals (REGN) at 9.21%.
April Inflation Data Shows Continued Moderation
The Bureau of Labor Statistics released the Consumer Price Index (CPI) for April 2025 this morning, reporting a seasonally adjusted 0.2% increase for the month. The 12-month inflation rate fell to 2.3%, its lowest level since February 2021 and slightly below economists’ expectations of 2.4%.
Core CPI, which excludes volatile food and energy prices, also increased 0.2% for the month, with the year-over-year level at 2.8%. Shelter prices were the main contributor to the monthly increase, accounting for more than half of the overall move.
“Good news on inflation, and we need it given inflation shocks from tariffs are on their way,” said Robert Frick, corporate economist at Navy Federal Credit Union. However, economists warn that the recent tariff developments could impact inflation figures in the coming months.
Upcoming Market Events to Watch
Investors are closely monitoring several high-profile earnings releases scheduled for this week. Today’s notable reports include JD.com (JD), Tencent Music Entertainment (TME), and Sea Ltd (SE).
Tomorrow, May 14, will see reports from Cisco Systems (CSCO) after market close, while Thursday will feature earnings from Alibaba Group (BABA), Walmart (WMT), and Applied Materials (AMAT).
Beyond earnings, market participants will be watching for additional economic data releases later this week, including retail sales and the Producer Price Index (PPI) on Thursday, which could provide further insights into the state of the economy and potential Federal Reserve policy moves.
Market Outlook
The CBOE Volatility Index, often referred to as the market’s “fear gauge,” declined 3.51% to 18.39, indicating reduced investor anxiety following the US-China trade developments.
While today’s market performance and inflation data paint a positive picture, analysts remain cautious about the potential impact of tariffs in the coming months. Market expectations for Federal Reserve interest rate cuts have shifted, with traders now anticipating the first cut in September rather than June, with just two likely reductions this year as inflation remains above the Fed’s 2% target.
As negotiations between the US and China continue over the next 90 days, market volatility may persist, but today’s rally suggests investors are optimistic about a resolution to the trade tensions that have weighed on global markets.