May 16, 2025

Midday Market Roundup for Friday, May 16, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, May 16, 2025:

1. U.S.–China Tariff Truce Fuels Weekly Gains, but Caution Remains

Wall Street’s main indexes are on track for solid weekly gains, buoyed by the recently announced 90-day tariff truce between the U.S. and China. The S&P 500 returned to positive territory for the year for the first time since late February, though it remains about 4% below its all-time high. Analysts note that while the truce has injected optimism and stabilized high-risk assets, the agreement is temporary and does not resolve deeper trade and economic issues. Market participants closely watch a crucial vote on President Trump’s tax legislation, which could face delays due to political dissent. Looking ahead, Societe Generale analysts suggest the “risk-on” mood could persist into next month, but at a more measured pace, as investors remain mindful of ongoing economic headwinds and the truce’s limited scope14.

2. Economic Data: Retail Sales Slow, Inflation Mixed, Consumer Sentiment in Focus

Recent U.S. economic data presents a mixed picture. Retail sales rose just 0.1% in April, which aligns with expectations but well below March’s 1.7% jump, indicating that consumer spending is moderating. The producer price index (PPI) surprised markets by falling 0.5% in April, defying expectations for a rise and pushing Treasury yields lower. Meanwhile, consumer prices showed a slight rebound, and the University of Michigan’s preliminary consumer sentiment index for May is due later today. Economists and investors watch these figures closely for signs of underlying economic strength or weakness as the Federal Reserve weighs its next moves135.

3. Global Markets React Cautiously: Asia Mixed, Europe Softens

Global financial markets responded to the U.S.–China tariff truce cautiously. In Asia, Japan’s Nikkei 225 and South Korea’s KOSPI posted modest gains, buoyed by strong tech and industrial shares, while China’s CSI 300 slipped on disappointing industrial production data. Hong Kong’s Hang Seng Index increased, but persistent property and banking sector weakness capped gains. In Europe, markets edged lower as weak GDP data and lackluster earnings weighed on sentiment. Germany’s DAX and France’s CAC 40 declined, while the UK’s FTSE 100 was flat, supported by strength in energy and commodities but held back by retail and real estate24.

4. Tech and Gold Stand Out; Walmart Warns on Tariffs

Tech stocks have been a bright spot, with Tesla and Nvidia up more than 15% for the week, reflecting investor confidence in growth sectors amid trade optimism. However, Walmart shares fell even after beating earnings expectations, as the retailer warned it would begin raising prices later this month to offset higher tariff costs. Meanwhile, gold prices remain near record highs, with analysts noting that President Trump’s preference for a weaker dollar could further support the precious metal in the coming months35.

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The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

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Midday Market Roundup for Friday, May 16, 2025

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