S&P 500 Turns Positive Amid US-China Trade Truce

Barry Adams
14 May, 2025
New York City

Wall Street indexes flatlined on Wednesday, and tech stocks halted a five-day rally.

The S&P 500 index edged up 0.01%, and the Nasdaq Composite advanced 0.02%, following positive market sentiment for the last five trading sessions. 

Investors breathed a sigh of relief after the U.S. and China struck a deal to de-escalate trade tensions and trimmed down previously announced sky-high tariffs, but structural issues surrounding bilateral trade are still unresolved. 

The U.S. rolled back tariffs on packages arriving from China to 54% from the previously announced 120%, and China removed its ban on the purchase of Boeing airplanes. 

The latest measures are likely to improve sentiment on Wall Street, but the fact remains that China and the U.S. are far apart on tariffs. 

Moreover, China has reduced its reliance on the U.S. markets by diversifying its manufacturing locations and accelerated its exports in other markets in the ASEAN region, the Middle East, and Latin America.

Trade uncertainty is likely to return in the weeks ahead, as China ramps up its agricultural imports from Brazil, Argentina, Peru, Thailand, and Vietnam.  

But the U.S. companies have deepened their reliance on Chinese companies for consumer goods, electrical appliances, raw materials, and intermediate goods. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.1% to 5,891.24, the Nasdaq Composite edged up 0.3% to 19,075.17, and the Russell 2000 index declined 0.2% to 2,097.49.

The yield on 2-year Treasury notes edged higher to 4.02%, 10-year Treasury notes increased to 4.50%, and 30-year Treasury bonds advanced to 4.95%.

WTI crude oil decreased $0.43 to $63.24 a barrel, and natural gas prices edged lower by $0.11 to $3.54 a thermal unit.

Gold decreased by $70.45 to 3,184.97 an ounce, and silver edged down by $0.55 to $32.39.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.32 to 100.68 and traded at a two-year high.

 

U.S. Stock Movers 

American Eagle Outfitters dropped 11.5% to $11.26 after the company withdrew its annual outlook, citing tariff uncertainties. 

In addition, the apparel retailer released its preliminary quarterly results and reported a revenue decline of about 5% to $1.1 billion and an operating loss of $85 million. 

Abercrombie & Fitch declined 2.3% to $79.52. Urban Outfitters fell 0.8% to $58.89, and GAP decreased 1% to $25.15. 

NVIDIA Corp. soared 3.3% to $133.85, and Advanced Micro Devices jumped 3.6% to $116.50 after the two artificial intelligence-linked companies were deemed beneficiaries of a potential trade deal with Saudi Arabia.