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U.S. Stocks Cap Strong Week as Trade Truce and Inflation Data Boost Markets

Major indexes close at multi-month highs following a 90-day U.S.–China tariff pause, while consumer sentiment hits near-record lows.

The S&P 500 gained 1% so far in 2025, having rebounded from a sell off in April.
A trader on the floor of the New York Stock Exchange in mid-May.
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Overview

  • The S&P 500 rose 0.7% on Friday to 5,958.38, marking its fifth consecutive daily gain and a 5.3% increase for the week.
  • The Dow Jones Industrial Average climbed 0.8% to 42,654.74, and the Nasdaq Composite added 0.5% to reach 19,211.10, driven by strong performance in tech stocks.
  • Markets rallied throughout the week after the U.S. and China agreed to a 90-day tariff pause, reducing tariffs on both sides and fueling optimism for broader trade deals.
  • Consumer sentiment fell to 50.8 in May, near its second-lowest reading in history, highlighting a disconnect between market performance and household economic outlooks.
  • Corporate developments included a 6.4% rebound in UnitedHealth shares after a sharp drop tied to a reported DOJ investigation, and Cisco shares rising nearly 5% on an upgraded annual forecast driven by AI growth.