The S&P 500 climbed 1% on Tuesday, recovering all of its 2025 losses as buyers cheered a string of favorable developments in tech, commerce, and inflation.
The Nasdaq Composite surged 1.6%, whereas the Dow Jones Industrial Common dropped 0.64%, weighed down by an 18% plunge in UnitedHealth shares after its CEO stepped down and the corporate suspended steering.
The rally was pushed largely by a 6% achieve in Nvidia, which crossed a $3 trillion market cap after information broke that it will ship 18,000 AI chips to Saudi Arabia.
Different chipmakers, together with Broadcom and AMD, jumped 4% every, driving momentum from renewed world demand and optimism over synthetic intelligence.
Including gasoline to the market rebound was a softer-than-expected Client Value Index studying for April. Inflation rose 2.3% year-over-year, barely beneath economists’ expectations and marking the slowest annual tempo since 2021.
Bond merchants adjusted expectations for rate of interest cuts, now eyeing a September transfer by the Federal Reserve as an alternative of June.
Coinbase inventory surged 23.97% at the moment, rising $49.68 to shut at $256.90. This got here after Coinbase made historical past by turning into the primary crypto firm to hitch the S&P 500.
Easing tensions with China
Markets additionally reacted to the White Home’s announcement of a $600 billion funding initiative and a 90-day tariff truce with China.
The easing of geopolitical tensions contributed to a broader risk-on sentiment, lifting main tech shares together with Tesla (+5%) and Meta (+3%).
Palantir jumped 9% following a $142 billion U.S.-Saudi protection deal, whereas Coinbase spiked over 18% on information of its inclusion within the S&P 500, signaling what analysts referred to as a dramatic turnaround for the crypto business beneath a extra favorable regulatory local weather.