From Zacks Investment Research: 2025-05-12 19:14:00

On Monday, May 12, 2025, the markets had a strong session, with the S&P 500 nearing its all-time trading high and the Dow and S&P 500 close to posting profits year to date. The Dow gained 1160 points, the S&P 500 rose by 184 points, the Nasdaq surged by 779 points, and the Russell 2000 increased by 68 points. The catalyst for this shift was the agreement between the U.S. and China to pause reciprocal tariffs. Amazon and Meta Platforms were up 8%, leading the way for “Mag 7” stocks. Chinese stocks also saw a bounce, with the Hang Seng index gaining 3%.

Tomorrow’s big news is the Consumer Price Index (CPI) report for April. Headline month over month CPI is expected to show a +0.2% swing, while core CPI is expected to be +0.3%. Year over year, headline CPI is expected to remain at +2.4% and core CPI at +2.8%. These figures, if as expected, would be above the Fed’s target for inflation. The likelihood of an interest rate cut has decreased, with the highest probability for a cut in September.



Read more at Zacks Investment Research: U.S., Chinese Markets Cruise on Cooling Trade Tensions – May 12, 2025