May 13, 2025

Midday Market Roundup for Tuesday, May 13, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Tuesday, May 13, 2025:

1. U.S. Markets Pause After Trade Truce Rally; Inflation Data in Focus

After a strong rally on Monday fueled by the U.S.-China tariff truce, U.S. stock futures dipped at midday as investors shifted their attention to April’s consumer price inflation (CPI) report. The S&P 500 and Nasdaq reached their highest levels since early March and are now consolidating gains. The CPI data, released this morning, showed annual inflation easing to 2.3% in April, down from 2.4% in March, according to the Financial Times. This softer-than-expected reading has supported hopes for at least two Federal Reserve rate cuts by year-end, with the first anticipated in September. However, market analysts caution that any surprise uptick in inflation could limit the Fed’s flexibility to ease policy further16.

2. U.S.-China Tariff Truce and Global Trade Developments

Monday’s surge in equities was driven by news that the U.S. and China agreed to temporarily reduce tariffs for three months, with the U.S. lowering additional tariffs on Chinese imports from 145% to 30% and China reducing its tariffs on U.S. goods from 125% to 10%. The White House also announced a reduction in the “de minimis” tariff on shipments from China14. This truce, which could have significant implications for the U.S. economy, and last week’s limited trade agreement between the U.S. and the U.K. have helped global markets recover much of their April losses. However, the S&P 500 remains about 5% below its February peak, and the effective U.S. tariff rate is still nearly five times higher than at the start of the year46.

3. Stock Movers: Nvidia, Coinbase, Boeing, UnitedHealth

Several stocks made notable moves at midday. Nvidia jumped 6% after announcing a major AI chip supply deal with Saudi Arabia’s Humain for a large data center project. Coinbase shares soared 22% after being named to the S&P 500, effective May 19. Boeing rose 3% as China lifted its ban on new aircraft deliveries, and the company reported a sharp increase in April deliveries. In contrast, UnitedHealth Group shares plunged 16% after its CEO’s resignation and the withdrawal of 2025 guidance due to rising medical costs, which also pressured other insurance stocks36.

4. Global Economic Outlook: Inflation, Trade, and Capital Flows

Globally, markets are digesting the implications of the U.S.-China truce and softer U.S. inflation. The Financial Times notes that while U.S. inflation fell to 2.3% in April, economists warn that the full effects of recent tariffs have yet to be felt, particularly in sectors like autos and pharmaceuticals. Foreign investment flows have surged into Japanese assets, with a record $57 billion in equities and bonds purchased in April. Meanwhile, global economic growth remains cautious, with the IMF and S&P Global highlighting the need for lasting solutions to trade tensions and warning that global growth could remain subdued if protectionist measures persist56.

Sources

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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 Tuesday, May 13, 2025

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