U.S. Secretary of the Treasury Scott Bessent shakes hands with Chinese Vice Premier He Lifeng during the bilateral meeting between the U.S. and China, in Geneva, Switzerland, on May 11, 2025.
Keystone/eda/martial Trezzini | Via Reuters
The S&P 500 rose modestly on Wednesday, extending 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 climbed. Shares of Nvidia advanced more than 4%, following news that it would send Saudi Arabia 18,000 of its top artificial intelligence chips. Peer chip stock AMD also rose more than 4% on the back of a $6 billion buyback.
Week to date, the S&P 500 and Dow are up more than 4% and nearly 2%, respectively. The Nasdaq has jumped more than 6%.
This week’s pop also put the S&P 500 in 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 that April 7 intraday low, the benchmark is up more than 21%.
Risk appetite grew this week after the U.S. and China temporarily slashed tariffs on a wide array of goods. The U.S. reduced duties on China to 30% earlier this week, while Beijing lowered its own levies to 10% on U.S. imports. Both nations had threatened in April to impose tariffs above 100% on the other.
“While this progress has led to a likely peak in investor fear and policy uncertainty, there are still a lot of unknowns over where tariff rates will ultimately land,” said Adam Turnquist, chief technical strategist at LPL Financial. “However, for now, investors have embraced the de-escalatory backdrop, especially the tariff reprieve deal reached with China over the weekend.”
The broad market index is now positive for the year.
The tentative accord between the world’s biggest economies has led investors to hope it will eventually yield a more concrete trade agreement. China and the U.S. have not yet agreed to specific terms for a deal, however, and Trump said this week that a final agreement wouldn’t happen quickly.
“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.”
