Today’s Complete Market CoverageMajor Indexes Continue Upward Momentum
As of midday Friday, May 16, 2025, U.S. stock markets are showing modest gains, with the major indexes hovering near unchanged but maintaining their impressive weekly advances. The S&P 500 is up 0.10% at 5,923.01, on track for its fifth consecutive positive session and a weekly gain of approximately 4.5%.
This week’s rally has been particularly strong for technology stocks, with the Nasdaq up 6.6% since Monday, reflecting renewed investor enthusiasm for the sector and increased risk appetite across markets.
US-China Trade Relations Fuel Market Optimism
The primary catalyst for this week’s market surge has been the announcement that the United States and China have agreed to reduce tariffs imposed on each other for a 90-day period while negotiating a broader trade agreement. This development has significantly boosted investor sentiment, particularly for companies with substantial exposure to Chinese markets.
Several economic indicators released this week have further reinforced confidence in the U.S. economy’s resilience, though concerns persist about potential long-term impacts of tariffs on growth and corporate profits.
Tech Stocks Performance and Notable Movers
Mega-cap tech stocks are showing mixed performance at midday. Tesla (TSLA) is up 1.23% at $347.02, while Alphabet (GOOG) has gained 2%. Nvidia (NVDA) is slightly down 0.07% at $134.73 but remains one of the most actively traded stocks today.
Server manufacturer Super Micro Computer (SMCI) continues its impressive run, rising 4.55% today after gaining nearly 40% this week. Advanced Micro Devices (AMD) is up over 2%, building on positive momentum following news of expanded share buyback programs and new business deals.
On the downside, Applied Materials (AMAT) has tumbled nearly 7% after reporting quarterly revenue below Wall Street expectations, citing weakness in China sales. Globant (GLOB) is today’s biggest loser, plunging 27.73% on disappointing earnings.
Upcoming Economic Events to Watch
Investors should keep an eye on next week’s economic calendar, particularly the flash PMI data scheduled for release on Thursday, May 22. These reports will provide crucial insights into how major economies are responding to changing global trade conditions midway through Q2 2025.
The PMI data will be especially important as previous surveys have highlighted slowing global growth, with global exports falling at the sharpest rate in over two years while business optimism has dropped to its lowest since the early pandemic period.
Other key events include central bank meetings in Australia and Indonesia, with markets expecting the Reserve Bank of Australia to lower rates amid concerns over U.S. tariff impacts. China will also release important industrial production and retail sales data that will help assess April economic conditions.
Market Outlook
Despite the current rally, some analysts caution that certain tech stocks may be overheated in the short term. The Relative Strength Index suggests that when 24% or more of Nasdaq 100 stocks have an RSI reading above 70, returns one week later tend to be negative.
Nevertheless, the primary market trend remains bullish following the recovery from early-year corrections and the brief bear market territory reached during what some called “Liberation Day.” The thawing tensions between the U.S. and China and emerging trade deals have reinvigorated investor confidence, particularly in the technology sector.
As markets head into the final hours of trading, investors will be watching closely to see if the S&P 500 can secure its fifth consecutive positive session and if the major indexes can maintain their impressive weekly gains.