Stock Market Update Thursday May 8, 2025

Stock Market Update Thursday May 8, 2025 Equities Extend Gains Amid Policy Clarity and Trade Developments U.S. equity markets advanced for a second consecutive session, buoyed by post-FOMC optimism and fresh headlines on the international trade front. During a joint live interview with U.K. Prime Minister and President Trump, an initial bilateral trade framework was announced—providing a modest tailwind to risk assets. Investor sentiment was further catalyzed by Trump’s midday appeal to "go out and buy stocks now," sparking a risk-on impulse that sent the S&P 500 up nearly 1.5% intraday. However, gains moderated into the close as traders locked in profits, with the S&P500 benchmark index finishing the session 0.6% higher.

For the day: SPX +0.6%, QQQ +1%, IWM +1.9%.

Away From Stocks: In fixed income markets, Treasury yields repriced sharply amid renewed selling pressure. The 2-year note yield jumped 12 basis points to 3.90%, while the 30-year bond yield climbed to 4.83% from 4.77% the previous day, reflecting heightened rate sensitivity and ongoing duration risk. Commodities saw divergent moves: West Texas Intermediate (WTI) crude oil rebounded to the $60 per barrel threshold, while gold pulled back to $3,308 per ounce, underscoring persistent cross-asset volatility. Meanwhile, Bitcoin broke decisively above the six-figure mark, topping $101,000 for the first time in three months, reflecting a resurgence in crypto risk appetite. The CBOE Volatility Index (VIX) slipped below 23, signaling a modest retreat in near-term equity market uncertainty.

Bitcoin Daily Chart

The Federal Open Market Committee (FOMC) convened yesterday. Yesterday Markets initially sold off in response to the tariff announcement, reflecting heightened trade tensions and macroeconomic uncertainty. However, equity indices have since retraced those losses, returning to pre-tariff levels, underscoring the resilience of investor risk appetite despite erratic signaling from the administration on trade policy and economic direction.