U.S. stocks opened higher due to trade optimism: the pause in U.S.-China tariffs and easing inflation are boosting the three major indexes.

Taiwan • Business • 05/14 18:56
U.S. stocks opened higher due to trade optimism: the pause in U.S.-China tariffs and easing inflation are boosting the three major indexes.

On May 14, 2025, the U.S. stock market continued its upward trend from earlier this week due to positive news such as the U.S.-China tariff suspension, cooling inflation data, and Trump's visit to the Middle East. The Dow Jones Industrial Average rose by 9.7 points, the S&P 500 rose by 10.2 points, and the Nasdaq rose by 64.6 points. Technology stocks performed strongly, particularly AI-related companies, leading to a positive shift in market sentiment.

Key Updates

05/16 01:24

JPMorgan CEO Jamie Dimon, in Paris, warns about recession risks, and the uncertainty surrounding US-China trade negotiations is impacting US stock performance.

On May 15, 2025, JPMorgan Chase's CEO, Jamie Dimon, warned at the Global Markets Conference in Paris that despite the easing of US-China tariff tensions, global economic uncertainties and recession risks still exist. Progress in the US-China trade negotiations has been limited, and market sentiment is cautious. On that day, the performance of US stocks was mixed, with the Dow Jones Industrial Average rising 271 points, the S&P 500 closing higher for the fourth consecutive day, while the Nasdaq and the Philadelphia Semiconductor Index experienced slight declines.

05/15 22:55

US stocks are mixed: Employment data is steady, IMF cuts global growth forecast; US-South Korea forex talks lead to Korean won fluctuations

On May 16, 2025, the major indices of the U.S. stock market had mixed performances, with the Dow Jones Industrial Average rising by 0.65% and the S&P 500 Index by 0.41%, while the Nasdaq Index fell by 0.18%. The U.S. non-farm employment report for April showed an increase of 177,000 jobs, with the unemployment rate remaining at 4.2%. The IMF downgraded the 2025 global economic growth forecast to 2.8%, citing U.S. tariff policies as the reason. The U.S.-South Korea foreign exchange policy talks led to fluctuations in the Korean won, and the appreciation of the New Taiwan dollar attracted attention, though the Taiwan-U.S. tariff negotiations did not address exchange rate issues.

05/15 21:23

U.S. stock market closed with mixed results: Cisco's stock rose as its financial forecast was revised upward, while UnitedHealth's stock plunged due to a judicial investigation.

On May 15, 2025, the U.S. stock market closed with mixed performance. The Dow Jones Industrial Average rose over 270 points due to Cisco's upward revision of its full-year forecast, while the S&P 500 Index increased for the fourth consecutive day. The Nasdaq Index edged down due to declines in tech stocks such as Amazon and Meta. Cisco's stock price jumped more than 5% on strong AI demand, while UnitedHealth tumbled 11% after reports of a criminal investigation by the U.S. Department of Justice, hitting a five-year low, making it the market's focal point.

05/15 08:26

Trump Announces "Tariff Freedom Day": S&P 500 Strongly Rebounds, Retail Investors Cause Significant Market Fluctuations

On April 9, 2025, President Trump of the United States announced "Tariff Liberation Day," significantly lowering tariffs on Chinese goods and reached an agreement with China to suspend the trade war for 90 days. This policy shift caused market fluctuations, with the S&P 500 index initially dropping and then rising, resulting in an "artificial bull market." The CNN Fear and Greed Index surged to 70, indicating that market sentiment had shifted into the greed zone. This article examines the impact of the policy shift on the stock market and how retail investors dominated the market rebound.

05/15 02:25

US stocks experience slight fluctuations: AI deal boosts tech stocks, the S&P 500 rises for six consecutive days, Treasury yields break through 4.5%

On May 14, 2025, the major U.S. stock indices were mixed. The S&P 500 index rose for the sixth consecutive day, boosted by the AI cooperation agreement between the U.S. and Saudi Arabia, as technology stocks performed strongly. The Nasdaq index also rose, while the Dow Jones index slightly declined. The yield on the 10-year U.S. Treasury note rose to 4.53%, indicating increased pressure in the bond market. Investors are focusing on the forthcoming economic data and remarks from Federal Reserve Chairman Powell to evaluate future policy directions.

05/14 18:56

U.S. stocks opened higher due to trade optimism: the pause in U.S.-China tariffs and easing inflation are boosting the three major indexes.

On May 14, 2025, the U.S. stock market continued its upward trend from earlier this week due to positive news such as the U.S.-China tariff suspension, cooling inflation data, and Trump's visit to the Middle East. The Dow Jones Industrial Average rose by 9.7 points, the S&P 500 rose by 10.2 points, and the Nasdaq rose by 64.6 points. Technology stocks performed strongly, particularly AI-related companies, leading to a positive shift in market sentiment.

05/14 18:27

European stock markets decline: Optimism regarding US-China trade relations diminishes, policy easing does not boost investor confidence

On May 14, 2025, major European stock markets ended lower as optimism among investors about easing US-China trade tensions waned. The London FTSE 100 index dropped 0.21%, the Frankfurt DAX index dropped 0.47%, and the Paris CAC 40 index fell 0.47% as well. Even though the Chinese Ministry of Commerce announced a temporary lift on export controls for 45 US entities, market reactions showed that this short-term policy relief did not boost investor confidence.

05/14 07:27

U.S. stock futures slightly rise: Dow Jones Industrial Average surpasses 42,200 points, indicating stable sentiment in Asian markets

On May 14, 2025, at 12:33 PM Taipei time, futures for the three major U.S. stock indices slightly increased. Dow Jones Industrial Average futures rose 21 points to 42,249, S&P 500 futures increased by 2.75 points to 5,907.25, and Nasdaq 100 futures went up by 20.5 points to 21,298.5. This indicates stable market sentiment during the Asian trading session, as investors focus on global economic and corporate earnings developments.

05/13 18:31

U.S. inflation data falls to a four-year low, European stocks react differently: London edges down, Frankfurt and Paris edge up.

On May 13, 2025, European stock markets had mixed performances after the U.S. April CPI annual growth rate fell to 2.3%. The London FTSE 100 index dipped slightly by 0.02% due to a slowdown in the UK labor market affecting market confidence. Meanwhile, the Frankfurt DAX and Paris CAC 40 indices rose by 0.31% and 0.30%, respectively, boosted by a temporary reduction in tariffs between the U.S. and China and expectations for a rate cut by the European Central Bank. Markets remain cautious about the global economic outlook, reflecting a cautious, wait-and-see attitude amid the interplay of multiple factors.

05/13 17:25

Soft U.S. inflation data and easing U.S.-China trade tensions boost the S&P 500 and Nasdaq.

On May 13, 2025, the U.S. stock market rose due to the annual growth rate of the April CPI dropping to 2.3% and the easing of trade tensions between the U.S. and China. The S&P 500 and Nasdaq indices increased by 0.9% and 1.49%, respectively. The U.S. and China announced a suspension of some tariffs and significantly reduced tariff rates, which boosted market confidence. Technology stocks led the gains, with the Nasdaq entering a technical bull market. The yield on the U.S. 10-year Treasury bond declined, and the dollar index fell, indicating increased expectations of a shift in Federal Reserve policy.

US-China Tariff Truce and Inflation Data Take Center Stage in Market

At the beginning of this week, the United States and China announced a temporary reduction in tariffs on each other's goods, initiating a 90-day "cooling-off period." According to statements from both sides, U.S. tariffs on Chinese goods will be reduced from 45% to 30%, while Chinese tariffs on U.S. goods will simultaneously drop to 10%. This move is seen as a significant easing of bilateral trade tensions, injecting confidence into the market.

Meanwhile, the U.S. Consumer Price Index (CPI) for April increased by 0.2% month-on-month, lower than the market expectation of 0.3%, indicating some relief from inflationary pressures. This data further supports market expectations that the Federal Reserve may maintain stable interest rates, providing additional support to the stock market.

Opening Performance of the Three Major Indices

Driven by the positive news, Wall Street's three major indices rose at the opening on Wednesday:

  • The Dow Jones Industrial Average rose by 9.7 points, or 0.02%, opening at 42,150.09 points.
  • The S&P 500 Index increased by 10.2 points, or 0.17%, opening at 5,896.74 points.
  • The Nasdaq Composite Index climbed by 64.6 points, or 0.34%, opening at 19,074.72 points.

Technology stocks continued to perform strongly, becoming the main driver of the Nasdaq's rise.

Trump's Middle East Trip Boosts Market Sentiment

U.S. President Trump recently began a visit to the Persian Gulf, securing investment commitments worth up to $600 billion in Saudi Arabia. The trip also facilitated several corporate cooperation agreements, including a $20 billion aircraft procurement contract between Qatar and Boeing, and a $2 billion cooperation agreement between AI server manufacturer Super Micro Computer and Saudi data center DataVolt.

These developments further strengthened market expectations for U.S. companies' expansion opportunities in the Middle East, enhancing overall investment sentiment.

Technology Stocks Lead Gains, Chip and AI Concept Stocks Attract Attention

Technology stocks performed strongly in early trading on Wednesday, particularly companies related to artificial intelligence (AI). Nvidia's stock price rose by 3.44%, reaching $134.40 per share. Reports indicate that Nvidia will export 18,000 advanced AI chips to Saudi Arabia and collaborate with local AI company Humain to build an AI factory.

AMD's stock also rose by 8.38%, to $121.88 per share. The company announced a partnership with a Saudi AI investment company, committing $10 billion over the next five years to promote AI infrastructure. Additionally, AMD approved a $6 billion stock buyback plan, further boosting market confidence.

Bond and Commodity Markets React Simultaneously

In the fixed income market, the yield on the U.S. 10-year Treasury note slightly rose to 4.53%. In the commodity market, gold prices slightly declined, while Bitcoin fluctuated around $104,000. The dollar index fell to 100.530, reflecting an increased preference for risk assets in the market.

International Markets Rebound Simultaneously

Asian and European stock markets also rebounded. The MSCI Asia Index rose by 1.4%, and major European stock markets generally moved higher. British luxury brand Burberry's stock surged by 15% after announcing a layoff plan to reduce costs. Germany introduced a new economic stimulus package, further boosting confidence in the European market.

Intraday Dynamics and Market Reaction

As of 9:00 PM Taipei time on May 14, the Dow Jones Industrial Average was at 42,214.24 points, up 73.81 points or 0.18%; the Nasdaq Composite Index was at 19,103.82 points, up 93.74 points or 0.49%; the S&P 500 Index was at 5,901.21 points, up 14.66 points or 0.25%; and the Philadelphia Semiconductor Index rose by 0.87%, reaching 4,974.15 points.

The market overall shows an optimistic atmosphere, although some analysts suggest that the recent rally may face technical correction pressures. However, investor sentiment is still positively influenced by trade progress and corporate news.

References

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