On May 13, 2025, U.S. stock markets experienced a notable rally, with the S&P 500 rising 1% and reclaiming its 2025 gains. This surge was fueled by an encouraging inflation report indicating a slowdown to 2.3% in April from 2.4% in March, alleviating concerns about stagflation. Additionally, progress in U.S.-China trade negotiations, including a 90-day pause in tariffs, bolstered investor confidence. Despite these positive developments, the Dow Jones Industrial Average declined by 0.4%, primarily due to a significant 17.6% drop in UnitedHealth Group shares following a suspended financial forecast and CEO resignation. Conversely, the Nasdaq Composite gained 1.8%, propelled by strong performances in AI and technology stocks.
The day's market movements were marked by significant gains in the technology sector. Nvidia's stock rose 6.1%, driven by a partnership with Saudi Arabia's sovereign wealth fund-owned AI startup Humain to supply 18,000 chips for a new data center project. Super Micro Computer, which builds servers used in AI, saw a 16.1% increase, and Palantir Technologies gained 9.2%. Additionally, Coinbase surged 25.1% after being selected to join the S&P 500 index, replacing Discover Financial Services. Treasury yields edged higher amid optimism about the U.S. economy, with the 10-year Treasury yield rising to 4.50% from 4.45% late Monday. Overseas markets were mixed, with Tokyo stocks higher and Shanghai posting losses. Automaker Nissan rose 3% despite announcing a workforce reduction and reporting a $4.5 billion annual loss.