Today’s Complete Market CoverageMarket Indexes Rally as Trade Tensions Ease
The stock market continues its positive momentum on Wednesday, May 14, 2025, with the S&P 500 maintaining its newly reclaimed positive territory for the year. This milestone comes after the benchmark index erased all its 2025 losses following Monday’s announcement of a 90-day tariff reduction agreement between the United States and China.
As of early trading, futures tied to the S&P 500 added 0.07%, while Nasdaq 100 futures inched 0.18% higher. Dow Jones Industrial Average futures remained flat after Tuesday’s session, where the Dow fell 0.64%, weighed down by UnitedHealth’s 17.8% plunge following the company’s suspension of earnings guidance and CEO Andrew Witty’s announcement that he would step down.
Why Is the Market Up Today?
The market’s positive sentiment stems primarily from two key factors. First, the breakthrough in US-China trade relations has significantly reduced investor anxiety about potential economic impacts from tariffs. As Lale Akoner, global market analyst at eToro, noted, “It’s a big risk-on sentiment at the moment… While the structural issues between [the US and China] remain unresolved, the signal is quite clear that neither side wants to push trade tensions further.”
Second, Tuesday’s inflation data showed the Consumer Price Index rose at an annual rate of just 2.3% in April, marking the lowest level of 12-month inflation since early 2021. This cooling inflation has provided additional support to market optimism.
Tech Sector Leads Market News Today
Technology stocks continue to drive market gains, with the sector rising more than 2% in Tuesday’s session. Nvidia (NVDA) jumped more than 5% on news that the semiconductor giant would send over 18,000 of its artificial intelligence chips to Saudi Arabia as part of a new partnership.
Other tech giants are also extending their winning streaks. Apple (AAPL) has risen in four consecutive sessions despite being down 15.1% year-to-date, while Amazon (AMZN) has notched five straight positive days despite facing a 15.9% decline for 2025 so far.
Upcoming Market Events and Earnings Releases
Investors are closely watching several key earnings releases scheduled for today, May 14. Notable companies reporting before market open include Dynatrace (DT), MakeMyTrip Limited (MMYT), Global-E Online Ltd. (GLBE), and Tower Semiconductor Ltd. (TSEM).
After market close, Cisco Systems (CSCO) is set to report its quarterly earnings, with investors eager to see if the networking giant can maintain its recent pattern of exceeding analyst expectations.
Other Major Stock Movements
Beyond the tech sector, several stocks are making significant moves today:
– Coinbase Global (COIN) surged 16% following news that the crypto exchange will be added to the S&P 500.
– American Eagle Outfitters fell nearly 15% after withdrawing its full-year guidance and reporting preliminary Q1 results showing a revenue decline of approximately 5% to $1.1 billion and an operating loss of $85 million.
– UnitedHealth Group (UNH) continues to face pressure after yesterday’s 17.8% drop, significantly impacting the Dow Jones Industrial Average.
Market Outlook
As Wall Street continues to digest the implications of easing trade tensions and cooling inflation, the positive momentum may extend further if upcoming earnings reports exceed expectations. However, investors remain cautious about potential volatility, particularly as the effects of the temporary tariff reduction play out over the coming weeks.
For those wondering why the market is up today, the combination of trade optimism, cooling inflation, and strong performances from tech giants provides a clear answer, setting a positive tone for mid-May trading.