Market Pulse: Trade Truce & Tech Surge

Fresh news and strategies for traders. SPY Trader episode #1171. Hey there, Spy Traders! It's your pal, Penny Pincher here, ready to break down the market moves from today, Friday, May 16th, 2025. The clock's striking 6 PM out here on the West Coast, so grab your favorite beverage, and let's dive into what's been shaking up Wall Street. So, the big picture? The market's been on a bit of a rollercoaster lately, but things are generally looking up! We've had a really solid few weeks, bouncing back from that dip last month. We're even sniffing around those record highs from February – the S&P 500 is only about 3% away. Today was a good day, closing higher and capping off a great week. The Dow jumped 0.8% to close at 42,654.74. The S&P 500 climbed 0.7%, finishing at 5,958.38, and the Nasdaq rose 0.5%, ending the day at 19,211.10. Tech and consumer discretionary stocks really took the crown this week, both soaring by 7.7%! Utilities, consumer discretionary, and real estate weren't slouches either. On the other hand, healthcare and real estate were kinda lagging behind. Now, onto the juicy news! That USChina trade truce – you know, the one where they're easing up on tariffs a bit – it's really got investors feeling good. Seems like everyone was holding their breath about those trade war worries and a possible recession. In economic data, retail sales edged up 0.1% in April, which was right on the money. But hold on, the Producer Price Index took a nosedive, dropping 0.5% last month. Companywise, UnitedHealth Group has had a rough patch, between that DOJ investigation, a CEO shakeup, and those lowered profit forecasts. But hey, the stock bounced back a little today after a pretty steep fall. Nvidia is supplying semiconductors to a Saudi Arabian AI startup, while AMD shares are on the rise. Applied Materials took a hit because their China sales slumped, Novo Nordisk saw its stock dip after their CEO said goodbye, and Coinbase? Well, they got added to the S&P 500, which initially made their stock soar, but then came the customer data hack, and shares tumbled. Okay, let's zoom out. That USChina trade situation is still a biggie. While this temporary truce is a win, we're not out of the woods yet when it comes to the longterm effects on the economy and inflation. Speaking of inflation, the recent reports are looking better than expected, but consumers are starting to think inflation is going to ramp up again, which could be a problem. Interest rates are something to watch as well. Investors seem to be betting on the Federal Reserve cutting rates later this year. So, what should you be keeping an eye on? Definitely those USChina trade talks, upcoming inflation reports (especially that CPI data coming out in June), and how consumers are spending their money. And of course, what the Federal Reserve decides to do at their meeting in June. Don't forget to keep tabs on any geopolitical stuff that could throw a wrench in things. Now, for my totallynotprofessionalfinancialadvice trading recommendations: Things are looking good, but don't get too cocky. There's still some uncertainty floating around. Diversify, diversify, diversify! And think about investing in those solid companies with strong earnings. Given the potential for the market to swing, it might be a good time to think about active investing. In the current market, I am looking into utilities (because of the solid gains) and technology (because the sector is doing well). I'm personally going to hold off on healthcare, because of the DOJ investigation into UNH and the sector's underperformance this week. Ultimately, pay attention to all the economic data coming out, so you can make smart decisions. That's all for today, folks! Remember, I'm just a friendly neighborhood Penny Pincher, not a financial wizard. Keep an eye on those charts, and I'll catch you next time!