Stock Market Update Thursday May 15, 2025

Stock Market Update Thursday May 15, 2025 Equities Extend Gains as Yields Ease Equities opened lower, hinting at possible rally fatigue, but dip buyers quickly stepped in, propelling the S&P 500 to its fourth straight day of gains. By the close, the SPX rose +0.4%, the QQQ added +0.1%, and the IWM outperformed with a +0.5% advance.

Away From Stocks: A batch of mixed economic data, alongside comments from Fed Chair Powell, prompted a modest pullback in Treasury yields, with the 10-year settling around 4.45%. Crude oil remained volatile, declining roughly -2% on the session, while gold caught a bid. The U.S. Dollar Index (DXY) weakened to 100.80, and the VIX closed below 18, reflecting a continued absence of near-term market stress.

April Core PPI Shows Deflation: -0.44% MoM Core producer prices in April fell by 0.44% month-over-month, pointing to falling costs for businesses despite the recent talk of tariffs.

It’s important to remember that economic data over the next couple of quarters could be messy due to timing lags, one-off effects, and trade noise. But markets like to look ahead, and we think investors will soon shift focus toward 2026 earnings and the broader disinflation trend. This is a time to separate meaningful trends from short-term noise.

Misreading the Market Rally: What Investors May Be Getting Wrong

Some investors may be misunderstanding the real reasons behind the latest stock rally. A few popular narratives are prompting shifts in portfolios that don’t fully match the data: