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%

Taiwan • Business • 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.

Key Updates

05/16 02:58

U.S. stock futures fluctuate in early morning trading: Dow drops slightly by 17 points, Nasdaq and S&P both retreat.

On May 16, 2025 (local time in Taipei), in early trading, U.S. stock futures were volatile. The Dow Jones Industrial Average futures stood at 42,368 points, down 17 points or 0.04%; the S&P 500 futures were at 5,925.25 points, down 8 points or 0.13%; and the Nasdaq 100 futures were at 21,361.75 points, down 38.5 points or 0.18%. This was in contrast to the rise seen at 08:31, when futures for the three major indices saw a slight uptick. After a mixed performance in the previous trading day, investor sentiment was cautious.

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.

S&P 500 Index Rises for Six Consecutive Days, Led by Tech Stocks

On Wednesday (May 14), the S&P 500 Index rose by 6.03 points, or 0.1%, closing at 5,892.58, marking the sixth consecutive trading day of gains. The Nasdaq Composite Index increased by 136.72 points, or 0.72%, closing at 19,146.81 points. The Dow Jones Industrial Average fell by 89.37 points, or 0.21%, closing at 42,051.06 points.

Tech stocks performed strongly, driving the broader market. The Philadelphia Semiconductor Index rose by 0.6%, with AMD surging 4.7%, NVIDIA rising 4.2%, and TSMC ADR slightly up by 0.4%. Super Micro Computer soared 16% for the second consecutive day, becoming one of the standout performers in the S&P 500 Index.

AI Agreement and Middle East Investment Boost Tech Stocks

The rise in tech stocks is closely related to the recent AI cooperation agreement between the US and Saudi Arabia. This week, US President Trump embarked on a Middle East tour, signing an investment agreement with Saudi Arabia worth up to $600 billion, covering energy, defense, and AI infrastructure. Saudi Arabia's newly established AI company, Humain, announced a partnership with US tech companies, purchasing a large number of AI chips and server equipment, with the first order including 18,000 Blackwell chips from NVIDIA and a cooperation agreement with AMD.

Additionally, AMD announced a $6 billion stock buyback plan, further boosting market confidence. Raymond James initiated coverage of Super Micro Computer with an "outperform" rating, helping its stock price surge for two consecutive days.

Treasury Yields Rise Above 4.5%, Bond Market Pressure Increases

In contrast to the optimistic sentiment in the stock market, the bond market is experiencing tension. The yield on the US 10-year Treasury rose to 4.529% on Wednesday, closing above 4.5% for the first time since February. The 30-year Treasury yield is also approaching the 5% mark. The rise in yields reflects the market's increasing expectation that the Federal Reserve will not cut interest rates in the short term, while also being influenced by increased bond supply and selling pressure from investors.

According to Zerohedge and several strategists, the bond market is facing multiple pressures, including the massive issuance of mortgage-backed securities (MBS) and corporate bonds, profit-taking from basis trades, and concerns about a potential shift in Federal Reserve policy. Some investors are betting that the 10-year yield will rise to 4.8%, indicating a strong bearish sentiment in the bond market.

Market Focuses on Economic Data and Federal Reserve Talks

Investors are closely watching the April Producer Price Index (PPI) and retail sales data to be released on Thursday to assess whether tariff policies have impacted the real economy. Andrew Graham, a partner at Jackson Square Capital, noted that the market is seeking evidence of tariff impacts permeating economic activity.

Federal Reserve Chairman Powell is also scheduled to speak on Thursday, with the market hoping to gain more clues about the future direction of monetary policy. Although the annual growth rate of the April Consumer Price Index (CPI) fell to 2.3%, the lowest since 2021, Federal Reserve officials remain vigilant about inflation risks and emphasize the need to observe more data before deciding whether to adjust interest rates.

Investor Sentiment Divided, Market Volatility Increases

Despite the recent strong rebound in the stock market, some market observers believe the rally may have entered overbought territory. Mark Hackett of Nationwide stated that the market's shift from oversold to overbought has set a record pace, potentially limiting further upside in the short term. Matt Maley of Miller Tabak believes that a pause in the S&P 500 Index's rally is a normal phenomenon.

On the other hand, Rick Gardner of RGA Investments pointed out that progress in US-China trade negotiations could bring more positive momentum to the market. The US and China recently announced mutual tariff reductions, initiating a 90-day trade truce, with the US reducing tariffs on Chinese goods from 145% to 30%, and China reducing tariffs on US goods from 125% to 10%.

References

People Also Ask...

faq

Will the AI cooperation agreement between the United States and Saudi Arabia impact our investment strategy?

faq

The US stock market has recently skyrocketed due to AI-related agreements. Do you think it will drop back down soon?

faq

What will be the long-term impact of the agreement on AI cooperation between the United States and Saudi Arabia on tech stocks?