Quick Weekly Market Recap: May 11 to May 16, 2025

Wall Street just had its best week in over a month as U.S.-China trade tensions eased and investors rushed back into risk assets.

Market Performance

The major indices partied like it’s 1999 this week, with the S&P 500 surging 5.3% for its best performance since mid-April, while the Dow added a respectable 3.4% to its tally. But it was the tech-heavy Nasdaq that stole the show, rocketing up 7.2% as investor enthusiasm for technology stocks rekindled faster than a summer barbecue.

Treasury yields remained relatively stable, with the 10-year settling at 4.44% by week’s end. Meanwhile, gold investors were seeing red, with the shiny metal sliding to $3,207 per ounce and posting its biggest weekly loss since last November. When geopolitical tensions ease, gold loses its glitter faster than a Vegas showgirl in a rainstorm.

Crypto enthusiasts finally had something to celebrate as Bitcoin reclaimed the $100,000 milestone, trading around $104,000 by Friday. Ethereum went on an even wilder ride, rocketing up 38% for the week to settle near $2,516. Looks like digital assets got the trade-war-truce memo too.

Major News

Trade Truce Takes Center Stage

The market’s mood swing came courtesy of an unexpected U.S.-China tariff timeout announced at the start of the week. The two economic frenemies agreed to slash tariffs for 90 days while negotiating a broader deal, with U.S. rates on Chinese goods dropping to 30% and China’s duties on American products falling to 10%. Wall Street reacted like a teenager getting their phone back after being grounded, with Monday delivering a Dow surge of over 1,100 points. Commerce Secretary Howard Lutnick tempered expectations though, noting that baseline tariffs are likely here “for the foreseeable future”.

Corporate Drama Corner

UnitedHealth played the comeback kid, rebounding 6.4% on Friday after Thursday’s 11% faceplant following news of a DOJ criminal investigation. Meanwhile, Charter Communications jumped nearly 10% after announcing a $34.5 billion merger with Cox Communications, creating a cable behemoth just as everyone’s cutting the cord. In the “suffering from success” department, Applied Materials tumbled 5% after missing revenue targets due to weakening sales in China.

Economic Mood Souring

Despite the market party, regular folks aren’t feeling the vibe. The University of Michigan consumer sentiment index crashed to 50.8 in May, its second-lowest reading ever, while one-year inflation expectations surged to 7.8%-the highest since the “I Love the ‘80s” era of 1981. Maybe consumers didn’t get the memo about lower tariffs meaning lower prices?

Fed Watch

Fed Chair Jerome Powell kept a low profile this week but mentioned on Thursday that policymakers think it’s “essential” to reassess their approach to employment and inflation. That’s Fed-speak for “we’re watching this trade situation closely but not ready to make any sudden moves.” Market participants interpreted the comments as slightly dovish, fueling the risk-on sentiment that dominated the week. No rate changes were announced, giving traders one less thing to worry about as they focused on the trade developments.

Earnings Highlights

The earnings calendar took a backseat to macro developments this week, with most investors fixated on the trade agreement rather than quarterly reports. However, a few notable companies still managed to grab headlines:

• Applied Materials saw its shares drop roughly 6% after missing second-quarter revenue expectations, blaming U.S. export restrictions for hampering Chinese sales.

• Tesla continued its winning streak, marking its fourth consecutive week of gains as the EV maker recovered from its April lows.

• Estee Lauder advanced 4.4% after Michael Burry’s Scion Asset Management disclosed a new position in the cosmetics giant.

• Vistra jumped 5.5% after announcing it would purchase seven natural gas generation facilities for $1.7 billion from Lotus Partners.

One-More-Thing
Consumer Confidence Crisis

While markets celebrated trade peace, regular Americans were singing a different tune. According to the University of Michigan, consumer sentiment plummeted to near-record lows in May at 50.8 (down from 52.2 in April). Even more alarming? One-year inflation expectations shot up to 7.8%, levels not seen since the Reagan era. This disconnect between Wall Street’s party and Main Street’s pessimism might explain why President Trump’s ambitious tax legislation hit a roadblock on Capitol Hill Friday. Turns out economic vibes, like politics, can be decidedly local.

Wrapping it Up

This week proved that nothing moves markets like macro policy shifts, with the U.S.-China tariff ceasefire generating more investor enthusiasm than a free coffee day at Starbucks. Next week, all eyes will be on whether the rally has staying power or if it was just a sugar rush.

Coming Soon - The Merch-velous Market Emporium!

Soon, you’ll be able to flaunt your support with a spectacular array of goodies—think t-shirts that scream “I survived the market rollercoaster,” mugs that hold more than just coffee (like your tears of joy or despair), and perhaps even a clown nose or two for those particularly volatile trading days.