Today’s Market ActionMajor Indexes Pull Back as US-China Trade Tensions Ease
The stock market showed signs of cooling on Thursday, May 15, 2025, after a strong rally earlier in the week fueled by progress in US-China trade negotiations. As of early trading, the S&P 500 was down 0.27%, while the tech-heavy Nasdaq Composite dropped 0.22%. The Dow Jones Industrial Average fell more significantly, shedding 185 points or 0.44%.
This pullback follows an impressive streak for major indexes, with the Nasdaq Composite posting six consecutive winning days through Wednesday. The S&P 500 had advanced for three straight sessions, gaining 4.11% for the week, while the Dow has risen 1.9% during the same period.
Tech Giants Lead Market Momentum
Despite today’s slight retreat, technology stocks have been the market’s driving force this week. Nvidia (NVDA) and Tesla (TSLA) have both surged more than 16% week-to-date, while Meta Platforms (META) has gained 11.3%. Other tech giants including Amazon (AMZN) and Alphabet (GOOGL) have each climbed more than 8% during the same period.
Market sentiment has been bolstered by last weekend’s productive talks between Treasury Secretary Scott Bessent and Chinese officials, which resulted in a temporary suspension of escalating tariffs between the world’s two largest economies.
Key Economic Data Released Today
Investors are closely monitoring several important economic indicators released today. The Producer Price Index (PPI), a measure of wholesale inflation, is expected to show a 0.3% increase for April, according to economists polled by Dow Jones.
Other significant economic data being released today include retail sales and industrial production figures for April, as well as weekly jobless claims. These reports will provide further insights into the health of the US economy.
Major Earnings Announcements
Walmart (WMT), the nation’s largest retailer, is reporting its fiscal first-quarter earnings before market open today. Analysts expect earnings per share of $0.57, representing a 5% decrease compared to the same quarter last year.
Other notable companies reporting earnings today include Deere & Company (DE), with analysts forecasting earnings per share of $5.68, a 33.41% decrease year-over-year, and Alibaba Group (BABA), expected to report earnings of $1.27 per share, a 20.95% increase from the same period last year.
After-Hours Movers and Corporate News
Several stocks made significant moves in after-hours trading on Wednesday. Foot Locker (FL) shares surged more than 60% following reports that Dick’s Sporting Goods (DKS) is nearing a deal to acquire the company for approximately $2.3 billion.
UnitedHealth (UNH) slid 8% after reports emerged that the Justice Department is investigating the insurer, though a UnitedHealth spokesperson told CNBC that the company has not been notified of any such investigation.
Cisco Systems (CSCO) shares jumped 2% after the networking technology company reported fiscal third-quarter results that exceeded analyst expectations, with adjusted earnings of 96 cents per share on revenue of $14.15 billion.
Looking Ahead
As we move deeper into earnings season, market participants will continue to assess corporate performance against the backdrop of easing inflation and potential shifts in Federal Reserve policy. The temporary resolution of US-China trade tensions has provided some stability, but investors remain cautious about global economic conditions and potential policy changes that could impact market dynamics in the coming months.