Today’s Midday Market Update: S&P 500 Extends Gains as Tech Rally Continues

Major Indexes Continue Upward Momentum on Wednesday, May 14, 2025

The U.S. stock market continued its upward trajectory during midday trading on Wednesday, May 14, 2025, as investors build on the positive momentum from earlier this week. The S&P 500 (^GSPC) rose 0.2%, extending its recent gains after turning positive for the year during Tuesday’s session—the first time it has been in the green since early March. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.4%, marking its sixth consecutive day of gains, while the Dow Jones Industrial Average (^DJI) edged up 0.2% despite being weighed down by some underperforming components.

Trade Deal and Inflation Data Fuel Market Optimism

This week’s rally has been largely driven by two key factors: the recent trade agreement between the U.S. and China that slashed tariffs both countries had imposed on each other, and Tuesday’s inflation report showing that the annual rate of inflation hit a four-year low in April. These developments have significantly boosted investor confidence and risk appetite.

“It’s a big risk-on sentiment at the moment,” said Lale Akoner, global market analyst at eToro. “While the structural issues between [the U.S. and China] remain unresolved, I think the signal is quite clear that neither side wants to push trade tensions further.”

Tech Stocks Lead the Charge

Technology stocks continue to be the primary drivers of the market’s recovery. Nvidia (NVDA) surged 2.78% by midday, building on yesterday’s 5% gain that briefly pushed the AI chipmaker’s market capitalization back above $3 trillion. The company recently announced it would send more than 18,000 of its artificial intelligence chips to Saudi Arabia, further cementing its dominance in the AI hardware space.

Other tech giants showing strength include Tesla (TSLA), up 1.45% as it continues to recover from recent volatility, and Palantir Technologies (PLTR), which gained 1.28% after reaching a record high on Tuesday. Super Micro Computer (SMCI) was among the day’s biggest winners, soaring 16.61% after Raymond James initiated coverage with an “outperform” rating.

Key Earnings Reports and Economic Events

Investors are closely watching several notable earnings releases scheduled for today. Cisco Systems (CSCO) will report its Q3 2025 results after market close, with analysts expecting earnings per share of $0.92 compared to $0.88 in the same quarter last year. Other significant companies reporting today include Tencent Holdings (TCEHY), Sony Group (SONY), and Sumitomo Mitsui Financial Group (SMFG).

Market participants are also awaiting commentary from Federal Reserve officials, including San Francisco Fed President Mary Daly, for insights into the central bank’s thinking on interest rates. Currently, markets are pricing in the first 0.25% rate cut in September, pushed back from previous expectations for June.

Other Market Indicators

The yield on the 10-year Treasury note stood at 4.48% by midday, slightly down from Tuesday’s close of 4.50%, which was its highest level in more than two months. The U.S. dollar index fell 0.4% to 100.60, while gold futures declined 0.9% to $3,215 an ounce. West Texas Intermediate crude oil futures slipped 1.3% to $62.85 per barrel.

Bitcoin remained relatively stable around $104,000, having surged above $100,000 last week for the first time since February.

Looking Ahead

As the market continues to digest the implications of the U.S.-China trade agreement and recent inflation data, investors will be watching for any signs of how these developments might affect the Federal Reserve’s monetary policy decisions. With the S&P 500 now in positive territory for 2025 and the Nasdaq on a six-day winning streak, market sentiment appears cautiously optimistic, though analysts remain vigilant for potential volatility in the coming weeks.