crypto.news 2025-05-16 21:56:26

Dow jumps 330 points as S&P 500 logs strong weekly gain

The S&P 500 rose 0.7% Friday, closing out a strong week as investors looked past weak consumer sentiment data and persistent inflation concerns. The index posted a 5% gain for the week, its best since November 2023, as tech stocks and easing trade tensions fueled optimism. The Nasdaq Composite added 0..5% and the Dow Jones Industrial Average climbed 331 points, or 0.7%. For the week, the Nasdaq jumped more than 6%, while the Dow gained 3%. You might also like: Bitcoin price remains range-bound hinting towards a slow weekend Why did the markes go up? Markets rallied earlier this week after U.S. and Chinese officials agreed to a 90-day pause on new tariffs, easing fears of escalating trade friction. Tech stocks led the charge, with Nvidia up more than 15%, Meta up 7%, and Apple and Microsoft each logging notable gains. But Friday’s rally lost momentum after the University of Michigan’s consumer sentiment index dropped to 50.8—its second-lowest reading ever. Inflation expectations for the next year surged to 7.8%, the highest since 1981. Still, some analysts downplayed stagflation fears. “Markets are repricing the stagflation risk right now,” said Jamie Cox of Harris Financial Group, noting that consumer spending remains strong despite inflation concerns. President Donald Trump added uncertainty by signaling his administration would soon send letters to countries detailing new tariff rates, replacing some negotiations due to limited bandwidth. Despite the mixed signals, Wall Street ended the week on a high note, with the S&P 500 logging a five-day winning streak and recouping its year-to-date losses. Investors now turn to upcoming trade moves and inflation data for the next catalyst. You might also like: Moo Deng price approaches support: 50% bounce possible on bullish rounded bottom