Stock Market Rebounds as Tech and Trade Boost S&P 500
The S&P 500 rose by 1%, erasing all it’s 2025 losses. Investors were excited about good news in tech, trade, and inflation. The Nasdaq Composite jumped 1.6%, but the Dow Jones Industrial Average fell 0.64% due to UnitedHealth’s 18% drop. The company’s CEO left, and it stopped giving financial forecasts.
Key tech stocks led the rally. Nvidia soared 6%, hitting a $3 trillion market cap. It will send 18,000 AI chips to Saudi Arabia. This move shows growing demand for AI technology. Other chip makers like Broadcom and AMD also gained 4% each.
Adding fuel to the market rebound was a softer-than-expected Consumer Price Index reading for April.Inflation rose 2.3% year-over-year, slightly below economists’ expectations and marking the slowest annual pace since 2021. Bond traders adjusted expectations for interest rate cuts, now eyeing a September move by the Federal Reserve rather of June.
Coinbase stock surged 23.97% today, rising $49.68 to close at $256.90.This came after Coinbase made history by becoming the first crypto company to join the S&P 500. Easing tensions with China also helped. the White House announced a $600 billion investment initiative and a 90-day tariff truce with China. The easing of geopolitical tensions contributed to a broader risk-on sentiment, lifting major tech stocks including Tesla (+5%) and Meta (+3%). Palantir jumped 9% following a $142 billion U.S.-Saudi defense deal, while Coinbase spiked over 18% on news of its inclusion in the S&P 500, signaling what analysts called a dramatic turnaround for the crypto industry under a more favorable regulatory climate.
