Jamie Spencer
The S&P 500 rose modestly on Wednesday, continuing a strong start to the week that pushed the benchmark into the green for the year. The broad market index inched up 0.10% to close at 5,892.58, while the Nasdaq Composite gained 0.72% and ended at 19,146.81. The Dow Jones Industrial Average fell 89.37 points, or 0.21%, to settle at 42,051.06.
Technology Stocks Lead the Charge
Technology stocks saw a significant rise on Wednesday, with shares of Nvidia advancing more than 4%. The increase followed news that Nvidia would supply Saudi Arabia with 18,000 of its top artificial intelligence chips. Peer chip stock AMD also rose more than 4% after announcing a $6 billion buyback program.
Positive Week-to-Date Performance
Week-to-date, the S&P 500 and Dow are up more than 4% and nearly 2%, respectively, while the Nasdaq has jumped more than 6%. This week’s gains have also helped the S&P 500 reach positive territory for the year. At one point, the S&P 500 was more than 20% below its record high set in February. Since hitting its April 7 intraday low, the benchmark has surged by more than 21%.
Tariff Reprieve Boosts Investor Sentiment
Risk appetite increased this week following news that the U.S. and China had temporarily slashed tariffs on a wide array of goods. The U.S. reduced its duties on China to 30%, while Beijing lowered its own levies to 10% on U.S. imports. Both countries had previously threatened to impose tariffs exceeding 100% on each other.
Uncertainty Remains Despite Progress
While this progress has led to a decrease in investor fear and policy uncertainty, there are still many unknowns regarding where tariff rates will ultimately land. “For now, investors have embraced the de-escalatory backdrop, especially the tariff reprieve deal reached with China over the weekend,” said Adam Turnquist, chief technical strategist at LPL Financial. The tentative accord between the two largest economies in the world has raised hopes that it could lead to a more concrete trade agreement, although no specific terms have been agreed upon yet.
Outlook for the Future
“The next leg higher will have to wait for policy initiatives that could provide tailwinds into 2026, including deregulation and a pro-growth tax bill,” said Daniel Skelly, head of wealth management market research and strategy at Morgan Stanley. “But for now, investors may want to lean toward buying dips rather than chasing rallies, focusing on quality stocks with achievable earnings estimates.”
