Anna's Markets Recap

_{Just facts, you think for yourself}

Saturday, 5:14 AM

May 17, 2025

Good morning news friend! Here is a quick recap of what happened in the markets this week. 📰🌟

What Moved Markets Last Week

U.S. stock markets jumped the week of May 12-16, 2025. This was mostly because the U.S. and China temporarily eased their trade fight. They announced a 90-day pause on new tariffs (current tariffs will stay at 30% for China and 10% for the U.S.), which made the market rally, especially tech stocks. The S&P 500 went up 5.27%, and the Nasdaq climbed 7.15%, putting it into bull market territory.

But, numbers on retail sales and factory output showed the economy might be slowing down. The job market still looks strong, though. Inflation figures were a bit of a mix. The Consumer Price Index (CPI) cooled slightly. The Producer Price Index (PPI), which tracks prices for businesses, surprisingly fell. This could mean price pressures are easing. Even with the good news on trade, people are still worried about what happens with tariffs later on.

Tech and Growth Stocks

Tech stocks gained the most from the tariff pause and led the market's rise.

• Apple (AAPL): Its stock barely moved (+0.1%) even with the tariff news. Worries about its business in China and its supply chain are still around. Apple also said it will stop supporting its older Home system in Fall 2025, wanting people to upgrade to HomeKit.

• Microsoft (MSFT): The stock went up 1.39%. Microsoft announced a big reorganization and 6,000 job cuts to focus more on artificial intelligence (AI). Investors seemed to like this shift to AI.

• Nvidia (NVDA): Nvidia's stock jumped 11.01%. Good feelings about AI and fewer trade worries helped, even though China still has restrictions on its H20 chips.

• Alphabet (GOOGL): GOOGL was up 5.53%. Strong Q1 earnings and easier trade relations helped. But, a deal to help local news in California might not happen because of state budget cuts.

• Amazon (AMZN): Amazon’s stock dropped 2.47%. This happened even though its Q1 results were good and it’s still focused on AI and AWS. People might have sold shares to take profits after the stock went up earlier.

• Meta Platforms (META): Meta gained a bit, up 1.51%. Strong ad sales helped, but delays in launching its AI model held it back some.

• Salesforce (CRM): The stock dipped a tiny bit (-0.19%). This happened even though it announced it's buying Convergence.ai to improve its AI.

Banks and Financials

Financial companies also did well as people felt better about the market:

• JPMorgan Chase (JPM): The stock was up 1.77%. Good Q1 earnings helped, and people are waiting for strategy news at its upcoming Investor Day.

• Bank of America (BAC): BAC climbed 3.16%. The general good mood in the market after the tariff pause helped.

• Visa (V): Visa went up 1.66%. Strong Q2 earnings, people still spending money, and lots of international transactions were key reasons.

• Mastercard (MA): Mastercard’s stock edged up 0.91%. Its good earnings report and a positive view on consumer spending helped.

• Berkshire Hathaway (BRK.B): Berkshire Hathaway fell 1.16%. This was probably because people are concerned about Warren Buffett leaving as CEO in 2026 and his cautious view of the market.

Consumer Goods and Healthcare

Healthcare stocks were a mixed bag. Some went up, some down, due to general market trends and news about specific companies:

• Eli Lilly (LLY): The stock climbed 4.05%. Good news from clinical trials for Zepbound and its spending on research helped.

• Johnson & Johnson (JNJ): JNJ dipped 1.38%. Costs from tariffs and competition in its MedTech business played a part.

• AbbVie (ABBV): AbbVie went up 2.23%. It presented at a healthcare conference, and its lung cancer drug Emrelist got approved.

• UnitedHealth Group (UNH): UnitedHealth dropped a huge 28%. The main reasons were its CEO suddenly leaving, the company pulling its financial forecasts, and a DOJ investigation into its Medicare business.

Energy and Industrials

Energy stocks didn't follow the market's upward trend:

• ExxonMobil (XOM): ExxonMobil’s stock fell 1.90%, even though oil prices went up a bit. Investors may have sold shares to lock in profits after earlier gains, and because there was less worry about global politics.

• Crude Oil (WTI): Oil prices rose 2.11% for the week. Hopes for a better global economy after the trade news helped. But, U.S. oil and gas drilling slowed a little.

Commodities

• Gold: Gold prices dropped quite a bit, down 4.04% for the week. With less worry about global problems, people weren't buying as much gold, which is usually seen as a safe investment.

• Crude Oil: Crude oil prices went up 2.11%, ending at $62.35 a barrel. The good news on U.S.-China trade seemed more important to traders than worries about slower factory output.

What People Were Doing (Industry and Consumers)

• Retail Sales (April): Retail sales edged up only 0.1% from March. That's a big slowdown from the 1.7% jump in March. Maybe people bought things earlier to avoid tariffs. People still ate out a lot, but spending on other goods (not cars, gas, or building supplies) went down.

• Industrial Production (April): Factory output didn't grow at all (0.0% growth), which was less than expected. Manufacturing actually shrank by 0.4%, with a big drop in car production.

• Consumer Sentiment (May): How consumers feel about the economy got worse in May. The University of Michigan's early numbers showed the index fell to 50.8. This shows people are quite pessimistic, even with the good trade news.

What to Watch For

The 90-day break in U.S.-China tariffs really pushed the market up, especially tech stocks. But this break is just temporary. And with mixed signals from consumer and factory data, how people feel about the market could change quickly. Here’s what to keep an eye on:

• U.S.-China Trade Talks: What happens in these talks after the 90 days is a big deal and will really affect the market.

• Inflation and Fed Policy: Since CPI is a bit lower and PPI surprisingly fell, some people think the Federal Reserve might cut interest rates.

• Consumer Spending and Economic Growth: Consumers aren't feeling great about the economy. This could slow down overall growth.

• Company Earnings: Upcoming earnings reports will show how companies are dealing with trade issues and rising prices, especially in tech and healthcare.

Did you know we also write in-depth deep dives? They are long, packed with insights, and have received rave reviews. If you’re up for a detailed, action-packed read, check them out:

• Consumer Spending Trends

• Rare Earths and National Security

• How Trade Wars are Reshaping the US Treasury Market

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Baked with love,

Anna Eisenberg ❤️