Let’s be real – it’s been a while since Wall Street had a week like this.
Between a surprise tariff truce, softening inflation, and a sea of corporate headlines, the U.S. stock market closed its best week since early April. Traders saw a rare combination of positive geopolitical news, calming economic signals, and momentum in tech stocks – all while the Fed stayed quiet.
But was this week a turning point, or just a moment of calm in a high-volatility year?
Here’s your day-by-day breakdown of what moved markets from May 12 to May 16.
Monday, May 12: Tariff Truce Ignites a Rally
We kicked off the week with a big geopolitical surprise: the U.S. and China agreed to a 90-day pause on escalating tariffs – a deal that immediately lit a fire under risk assets.
Major indices surged:
- Dow Jones: +2.8% DIA+0.54%
- S&P 500: +3.3% SPY–0.04%
- Nasdaq: +4.4% COMP+2.92%
It was the strongest single-day move in months. The S&P 500 hit its highest level since early March, and investor sentiment flipped almost overnight from cautious to risk-on.
Leading the rally: Mega-cap tech and consumer discretionary stocks.
Amazon, Meta, Apple, Tesla, and Nvidia each jumped between 5–8%. Broadcom climbed over 6.5%. In sector terms, consumer discretionary soared by about 5.5%, and tech followed with a 4.5% gain.
One of the most unexpected winners? NRG Energy NRG+2.84%, up 26% after announcing a $12 billion asset acquisition – a reminder that not all big movers are in big tech.
Meanwhile, the Fed outlook shifted: futures traders pushed the expected start of rate cuts to September 2025, with just two cuts now priced in by year-end. The easing of trade war fears was seen as a de facto inflation hedge – giving the Fed more flexibility.
Tuesday, May 13: Inflation Cools, but Healthcare Drags
The momentum didn’t stop. April’s Consumer Price Index (CPI) came in at +2.3% YoY, slightly softer than the previous month. That’s the lowest CPI print since early 2021, and investors took it as more validation for the Fed to hit pause.
The S&P 500 rose 0.7%, pushing it into positive territory for the year. The Nasdaq added 1.6%, its sixth straight green day. But the Dow dipped 0.6% – not because of macro data, but because UnitedHealth UNH+1.28% dropped a staggering 18% after suspending earnings guidance and announcing CEO changes. Without that drag, the Dow would’ve been up.
One breakout name was Coinbase COIN–0.83%, which soared after being confirmed for addition to the S&P 500 – a huge moment for the crypto sector. Traders were clearly in a mood to reward anything touching AI or blockchain.
Wednesday, May 14: Mixed Indices, But Tech Stays Hot
By midweek, the broad rally started to cool, but tech stocks kept grinding higher.
The Nasdaq closed up 0.7%, while the S&P edged up just 0.1%. The Dow slipped again, down 0.2%, dragged by weakness in pharma and UnitedHealth’s continued fallout.
Still, there were bright spots:
- Nvidia and Tesla jumped another 4% each. NVDA+0.89% TSLA+1.26%
- Alphabet gained 4%. GOOGL+0.58%
- Advanced Micro Devices (AMD) climbed after announcing a $6 billion share buyback. AMD+0.62%
- Super Micro Computer surged 16% on a $20 billion data center deal with Saudi Arabia. SMCI+5.86%
The standout performer? Palantir, hitting a record high on strong government demand for its AI tools. PLTR+1.22%
On the flip side, pharma stocks took a hit. Merck dropped 4% and Moderna 6% after President Trump signed an executive order to reduce drug prices – a clear message that regulation risk isn’t going away.
The Fed? Still waiting. Officials signaled that they’ll hold off on any rate cuts until they understand the full impact of the tariff truce.
Thursday, May 15: Calm Data, Slight Gains
Economic reports were stable: retail sales, jobless claims, and PPI inflation all came in near or below expectations. That was enough to keep the market in “wait and see” mode.
Index results were split:
- S&P 500: +0.3% (4th straight daily gain)
- Dow Jones: +0.7%
- Nasdaq: –0.2% (snapping its win streak)
Some fatigue started to show in mega-cap tech. Amazon and Meta each lost more than 2%, reportedly due to product delays and lowered analyst expectations. Apple, Tesla, Nvidia, and Alphabet saw small pullbacks too.
Walmart reported solid Q1 earnings, beating profit expectations but slightly missing on revenue. The stock fell as much as 5% before rebounding to end down only 0.5%.
Meanwhile, UnitedHealth tumbled another 11% as new reports surfaced that the U.S. Department of Justice was investigating the company for Medicare fraud – piling on top of Tuesday’s damage.
Friday, May 16: Strong Finish and Weekly Gains Lock In
The week closed out on a high note, with all three major indices finishing solidly in the green:
- Dow Jones: +0.8%
- S&P 500: +0.7%
- Nasdaq: +0.5%
Weekly performance was impressive across the board:
- Nasdaq: +7.2%
- S&P 500: +5.3%
- Dow Jones: +3.4%
That’s the best week since early April, driven largely by easing trade tensions, softer inflation, and solid economic stability.
UnitedHealth rebounded by 6%, as some investors believed the selloff had been overdone. Bargain-buying kicked in despite lingering concerns.
Super Micro Computer was the breakout star of the week – jumping another 5% Friday to finish up over 44% for the week. AMD added 2%, while Tesla, Alphabet, and Microsoft all posted mild gains. Applied Materials AMAT–0.36% was a notable loser, falling 5% on weak Q1 revenue due to sluggish China sales.
Yields ticked higher late Friday after Moody’s downgraded the U.S. credit rating – not a market-crushing event, but a reminder that fiscal concerns are still on the radar.
**Note: This image was generated using AI for illustrative purposes only. It does not depict an actual product, location, event, or individual.
Final Thoughts
This was a textbook relief rally. Investors finally got a break from relentless inflation concerns and geopolitical jitters – and they used it to buy risk.
That said, the gains came fast. With no Fed meeting on the immediate calendar, and earnings season nearing its end, markets may enter a holding pattern.
Still, the fundamentals improved this week: inflation cooled, trade tensions eased, and tech led without fresh earnings. That’s a pretty healthy mix.
Will the momentum continue? That’ll depend on whether data stays supportive – and whether the Fed believes the market is doing its job for them.
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