Today's War Room Trading Recap

On Wednesday, May 14, 2025, U.S. stock markets closed mixed, with the S&P 500 edging up 0.1% to 5,892.58, the Nasdaq Composite rising 0.7% to 19,146.81, and the Dow Jones Industrial Average falling 0.2% to 42,051.06.

Key Drivers of Market Movement:

1. U.S.-China Trade Truce: Investor sentiment was buoyed by a 90-day pause in the U.S.-China trade dispute, announced earlier in the week. This temporary cease-fire alleviated fears of escalating tariffs and their potential impact on global economic growth.

2. Tech Sector Gains: Technology stocks led the market higher, with Nvidia and Advanced Micro Devices (AMD) posting significant gains. Nvidia’s stock rose over 4%, while AMD gained 4.7% after announcing a $6 billion share buyback plan. 

3. Economic Data and Fed Outlook: Investors remained cautious ahead of upcoming economic reports, including the Producer Price Index and retail sales data. Federal Reserve officials indicated that while recent inflation data showed progress toward the Fed’s 2% goal, the outlook remains uncertain.

4. Corporate Earnings: American Eagle Outfitters’ stock dropped 6.4% after the company withdrew its financial forecast, citing weak first-quarter results.

Market Performance for the Week:

• S&P 500: Up 4.1%

• Dow Jones Industrial Average: Up 1.9%

• Nasdaq Composite: Up 6.8%

• Russell 2000: Up 3% 

Despite the mixed close on Wednesday, the markets have shown resilience, recovering from earlier losses in the year. The S&P 500 has now gained 0.2% year-to-date, while the Dow and Nasdaq remain slightly down for the year.