First respite in 2025: The S&P 500 closes in the green and brings optimism back to the markets
A rally driven by Palantir and Super Micro and a slowdown in inflation returned the main U.S. stock index to positive territory.
A person walks near the New York Stock Exchange.
Technology stocks led a strong rebound on Wall Street this Tuesday, returning the S&P 500 to positive territory for the first time in 2025. The boost came from solid corporate earnings and signs that inflation continues to slow.
The consumer price index(CPI) showed annual moderation to 2.3% in April, the lowest figure since early 2021 and slightly better than the 2.4% forecast by analysts. The data bolstered investor confidence, as investors see low inflation as a sign of market stability.
Tech stocks drive the stock market rebound
The S&P 500 rose 0.7%, while the Nasdaq Composite gained 1.6%, thanks to the advance of technology companies. In contrast, the Dow Jones retreated by 0.6%, dragged down by an 18% drop in UnitedHealth shares following the resignation of its CEO.
Among the day's biggest gainers were Palantir Technologies, which advanced 8.1% to an all-time high of $128.10 per share, and Super Micro Computer, up 16%. Tesla and Nvidia also posted significant gains, up 4.9% and 5.6%, respectively.
Pause in the U.S.-China trade war
Signs of détente in international trade also fueled the enthusiasm. The United States and China agreed to temporarily reduce some tariffs, which eased tensions and benefited companies with global exposure. Boeing, for example, saw its shares rise after China lifted restrictions on receiving its planes.
"Investors are trying to get back aligned with a growth narrative," explained Robert Haworth, U.S. Bank Asset Management strategist. "This is a market still waiting for news and clarity, but in the meantime, the worst-case scenario seems to be off the table."
Cautious about possible future changes
Despite the rally, signs of caution persist. Gold, considered a safe haven in times of uncertainty, rose 0.6% and the 10-year Treasury yield rose slightly, to 4.498%.
Separately, cryptocurrency platform Coinbase celebrated the announcement of its addition to the S&P 500, further boosting its shares.
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