Today’s Midday Market Update: Stocks Edge Higher as Investors Await US-China Trade Talks

Major Indexes Continue Positive Momentum

As of midday Friday, May 9, 2025, U.S. stock markets are showing modest gains, continuing the positive momentum from earlier in the week. The S&P 500 is up 0.1% at 5,670, while the tech-heavy Nasdaq Composite has gained 0.2% to trade around 17,960. The Dow Jones Industrial Average is hovering near the flatline at approximately 41,370, after pulling back from early morning highs.

If the major indexes manage to close higher for the week, it would mark three consecutive weeks of gains for all three major benchmarks – a feat not accomplished since October 2024. The Dow entered today’s session slightly positive for the week, while the S&P 500 was down 0.4% and the Nasdaq off 0.3% before today’s trading began.

Trade Talks and Tariff Developments Drive Market Sentiment

Market participants are closely monitoring developments ahead of highly anticipated trade talks between U.S. and Chinese officials scheduled for this weekend in Switzerland. President Donald Trump announced yesterday a framework trade agreement with the UK and indicated that more deals could be forthcoming.

Trump stated that the upcoming discussions with China could be “very substantive” and hinted that current tariffs on Chinese goods, which stand at 145%, could potentially be lowered if the talks progress favorably. This has created cautious optimism among investors who have been concerned about the impact of trade tensions on global economic growth.

Investors are also paying close attention to comments from Federal Reserve officials speaking today, following Wednesday’s decision to maintain current interest rates. Fed Chair Jerome Powell noted earlier this week that tariffs have increased risks of higher inflation and unemployment, but indicated the central bank needs additional data on how trade policies are affecting the economy before adjusting monetary policy.

Major Stock Movements

Tech giants are showing mixed performance at midday. Tesla (TSLA) is today’s standout performer, surging more than 6% to trade around $287. The electric vehicle maker has shown remarkable resilience over the past year, gaining nearly 67% despite recent sales challenges in Q1 2025.

Microsoft (MSFT) and Apple (AAPL) are both trading slightly higher, while Nvidia (NVDA) is down modestly. Nvidia shares have gained approximately 32% over the past year, currently trading around $117.

Several companies are making significant moves following earnings reports. Social media platform Pinterest (PINS) and cybersecurity provider Cloudflare (NET) have jumped 10% and 7% respectively after strong quarterly results. Conversely, travel booking site Expedia (EXPE) has dropped 8%, while buy-now, pay-later service Affirm (AFRM) has plunged 12%.

Upcoming Earnings and Economic Events

Today’s earnings calendar features reports from several notable companies. Before the market opened, Enbridge (ENB), Plains All American Pipeline (PAA), and Starwood Property Trust (STWD) released their quarterly results. The earnings season has been mixed so far, with some companies exceeding expectations while others have disappointed investors.

Cryptocurrency Markets

In cryptocurrency markets, Bitcoin continues its upward trajectory after breaking above the $100,000 mark yesterday for the first time since February. The leading digital currency is currently trading at approximately $102,800.

Looking Ahead

As we move into the afternoon session, market participants will be watching for any developments regarding the US-China trade talks and monitoring comments from Federal Reserve officials for hints about future monetary policy. The outcome of these events could significantly impact market direction in the coming weeks.

With tariff concerns, ongoing earnings reports, and central bank policy in focus, investors should prepare for potential volatility as markets navigate these complex economic and geopolitical factors.