Stock Market Update
The S&P 500 climbed on Tuesday, with Tesla leading the charge as investors awaited results from U.S.-China trade talks aimed at resolving the tariff dispute that has shaken global markets this year. Wall Street is optimistic about improved trade relations after a preliminary deal struck last month, although recent tensions over rare earth mineral exports have caused renewed concern.
Market Expectations
Following a slump in April due to President Donald Trump’s “Liberation Day” tariffs, the U.S. stock market has recovered in recent weeks. Investors are hopeful that a final trade agreement will help reduce the impact of Trump’s steep tariffs. The S&P 500 is currently trading just below its February record highs, with many expecting the trade barriers to ease. Scott Ladner, CIO at Horizon Investments, noted that market valuations cannot sustain under the current tariff levels.
Sector Performance
The S&P 500 saw mixed results across major stocks. Tesla rose almost 4%, while Microsoft dropped by 0.7%. Alphabet, benefiting from news that OpenAI would add Google Cloud to its computing infrastructure, gained 2%. Overall, the S&P 500 rose 0.36% to 6,027.71 points. The Nasdaq added 0.29% to 19,648.71 points, and the Dow Jones increased 0.26% to 42,871.41 points.
S&P 500 Sector Performance
Out of the 11 S&P 500 sector indexes, 10 saw gains. The energy sector led with a 2.21% rise, followed by healthcare, which gained 1.3%. Investors are eagerly awaiting U.S. consumer price data to gauge the Federal Reserve’s next rate decisions.
Global Growth Concerns
In a separate report, the World Bank lowered its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing higher tariffs and economic uncertainty as significant obstacles for nearly all economies.
Notable Stock Moves
Insmed shares surged 27% after the company’s experimental drug showed positive results in a mid-stage study. Meanwhile, J.M. Smucker’s shares tumbled 15% after the peanut butter maker lowered its profit forecast for the year. Snap saw a 1.7% rise after announcing plans to release its first-ever smart glasses next year, increasing competition with Meta in the wearable tech space.
Market Trends
Overall, advancing stocks outnumbered decliners within the S&P 500 by a 2.1-to-1 ratio. The S&P 500 saw 10 new highs and two new lows, while the Nasdaq recorded 66 new highs and 37 new low
