Market Recap – Wednesday, May 14, 2025
Tech Boosts Market, AI and Trade Talks Drive Optimism
Stocks finished mostly higher today. The S&P 500 is now slightly up for the year and has jumped 18% since its lowest point in early April. The Nasdaq also continued its positive streak, marking its sixth straight gain. While the overall market wasn’t as strong, large tech companies like Google, Nvidia, and Tesla helped the market stay positive. The Russell 2000, which tracks smaller companies, didn’t perform as well.
Sector Performance:
Some areas of the market performed really well today, including tech companies, healthcare, and banks. Retailers and entertainment stocks also did well. On the other hand, industries like pharmaceuticals, biotech, and airlines struggled, with some companies experiencing weak results.
Global Trade and Economy:
The news today didn’t have any major surprises, but the ongoing trade talks between the US and China remained a positive influence on the market. The US has hinted at making more trade deals when President Trump returns from his overseas trip. There are also growing expectations for investments in AI, especially following Trump’s visit to the Middle East, which added to the market’s positive mood.
Economic Updates:
There were no new economic reports today, but Fed Governor Jefferson mentioned that tariffs could slow down economic growth and increase inflation. The market is still expecting some interest rate cuts later this year, though the exact timing is unclear.
Corporate News:
AMD announced it will buy back $6 billion worth of its own stock.
Boeing signed a deal with Qatar to sell 160 planes.
Super Micro Computer announced a huge $20 billion contract to build data centers in Saudi Arabia.
Affirm is teaming up with Costco to offer flexible payment options for Costco customers.
Alcon saw its stock drop after reporting weaker-than-expected results and cutting its outlook for the rest of the year.
Top Gainers:
Exelixis rose 20.8% after reporting strong earnings and increasing its forecast for the year.
Super Micro Computer was up 15.7% thanks to the big new contract in Saudi Arabia.
Nvidia gained 5.6% after announcing a partnership in Saudi Arabia.
Top Decliners:
Halozyme Therapeutics fell 23.3% after reporting disappointing earnings and lowering its expectations for the year.
American Eagle Outfitters dropped 6.4% after disappointing results and pulling back its forecast for the year.
Here’s Our Take
While today’s market was a bit mixed, the ongoing positive news about trade between the US and China, as well as the growing investments in AI, kept the mood positive. However, there are still challenges for some industries, especially pharmaceuticals and consumer-facing companies, which are facing tough competition and market struggles. We encourage investors to be mindful of these risks, especially in industries that are struggling. While there is optimism in tech, particularly with AI and data centers, it’s important to remain cautious about the overall economic situation, which is still uncertain.
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