Stock Market Update Monday May 12, 2025

Stock Market Update Monday May 12, 2025 Equities surged robustly following a U.S.-China agreement to temporarily suspend tariffs during weekend negotiations in Switzerland, signaling a de-escalation that significantly alleviated global recession concerns. This optimism permeated broader asset classes, bolstering market sentiment.

On the day, the S&P 500 (SPX) rallied +3.3%, the Nasdaq 100 (QQQ) soared +4.0%, and the Russell 2000 (IWM) climbed +3.4%, reflecting strong investor confidence.

Away From Stocks: The 10-year Treasury yield rose +10 basis points to 4.48%, indicating expectations of sustained economic growth. Gold declined -3%, pressured by reduced safe-haven demand, while oil prices advanced, buoyed by improved demand outlooks. The U.S. Dollar Index (DXY) strengthened sharply, approaching 102, underpinned by relative currency stability. The CBOE Volatility Index (VIX) plummeted to approximately 18, signaling a marked reduction in market uncertainty and suggesting that recent volatility has largely subsided.

Here's what to watch for this week:

• Tue, 5/13

  • 6:00 AM ET: Apr Small Business Optimism Survey – 95.0e

  • 8:30 AM ET: Apr Core CPI MoM – 0.27%e

• Thu, 5/15

  • 8:30 AM ET: Apr Core PPI MoM – 0.28%e

  • 8:30 AM ET: Apr Retail Sales – 0.1%e

  • 8:30 AM ET: May Empire Manufacturing Survey – -8.0e

  • 8:30 AM ET: May Philly Fed Business Outlook – -10.5e

  • 8:40 AM ET: Powell Speaks on Framework Review

  • 10:00 AM ET: May NAHB Housing Market Index – 40e

• Fri, 5/16

  • 10:00 AM ET: May P U. Mich. 1yr Inf Exp

  • 4:00 PM ET: Mar Net TIC Flows

President Trump's surprise announcement of a trade agreement with China has boosted market confidence, especially since most people didn't expect a deal to happen soon. While we don't have all the details yet, financial markets are reacting positively.

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