Market Pulse – Live UpdatesMajor Indexes Continue Weekly Gains Amid Easing Trade Tensions
U.S. stocks edged higher in midday trading on Friday, May 16, 2025, as major indexes remained on track to post weekly gains for the third time in the last four weeks. The market’s positive momentum continues following the surprise U.S.-China tariff rollback announced earlier this week.
As of midday, the S&P 500 (^GSPC) was up 0.09% at 5,922.10, extending its winning streak to five consecutive days.
“Investor sentiment got a huge boost at the start of the week when the U.S. and China announced a tariff rollback,” noted market analyst Stephen Wisnefski. “This has helped the S&P 500 erase all its 2025 losses as an air of normality returned to the market.”
Earnings Reports Drive Individual Stock Movements
Several companies reported quarterly earnings results that significantly impacted their stock prices today:
Deere & Company (DE) shares rose 3.8% after reporting second-quarter fiscal 2025 earnings of $6.64 per share, beating analyst estimates of $5.68 per share.
Dillard’s, Inc. (DDS) jumped 6.1% following first-quarter 2025 earnings of $10.39 per share, surpassing expectations of $9.10 per share.
Cisco Systems, Inc. (CSCO) gained 4.9% after reporting third-quarter fiscal 2025 earnings of $0.96 per share, outpacing estimates of $0.91 per share.
Meanwhile, Advanced Drainage Systems, Inc. (WMS) fell 3.4% after missing earnings expectations, reporting $1.03 per share against estimates of $1.09 per share.
In the tech sector, Advanced Micro Devices (AMD) continued its recent rally, up 2.5% to around $118 after announcing an additional $6 billion to its share repurchase plan, increasing its total buyback program to $10 billion.
Upcoming Fed Meeting and Economic Outlook
Investors are closely monitoring the upcoming Federal Reserve meeting scheduled for June 18, which will provide updated economic projections and interest rate forecasts. The Fed held rates steady at its May 7 meeting in the 4.25% to 4.5% range, as expected.
“The Fed’s recent statement emphasized that the economy continues to expand at a moderate rate despite some recent trade data anomalies, mostly due to the likely front-loading of imports ahead of potential tariffs,” said J.P. Morgan Wealth Management Global Investment Strategist Vinny Amaru.
Market expectations for interest rate cuts have shifted, with a July or September cut now considered more likely than a June reduction. According to the CME’s FedWatch Tool, there is approximately a 50/50 chance of a rate cut in July, with at least one cut becoming highly probable by September.
Market Outlook and Trade Policy Impact
The market’s positive performance comes despite lingering concerns about the impact of trade policies on the economy. The Federal Reserve acknowledged in its May statement that “uncertainty about the economic outlook has increased further” and that “the risks of higher unemployment and higher inflation have risen.”
Traders are watching for further developments in U.S.-China trade negotiations, as recent indications of progress have helped reverse the significant market sell-off that followed President Trump’s April 2 “liberation day” announcement.
As the trading day progresses, investors remain cautiously optimistic about the market’s direction, balancing positive sentiment from easing trade tensions against concerns about potential inflation and economic growth challenges in the months ahead.