Stock Market Update

[BRIEFING.COM] It was another winning session for stocks. The S&P 500 (+0.7%) and the Nasdaq Composite (+1.6%) extended this week's gains, leading the S&P 500 to erase its 2025 losses. The index is fractionally higher this year, powered by a strong rally in mega caps and chipmakers.

NVIDIA (NVDA 129.93, +6.93, +5.6%) was a standout in that respect, leading the S&P 500 technology sector to close 2.3% higher.

The Dow Jones Industrial Average was left out of the rally due a big loss in UnitedHealth (UNH 311.38, -67.37, -17.8%). It's one of the most influential names in the price-weighted average, sinking following the news that CEO Andrew Witty is stepping down for personal reasons and that the company is suspending its 2025 outlook as it grapples with higher-than-expected medical costs.

UnitedHealth's outlook suspension was a reminder that there is still a lot of uncertainty in the market, yet it didn't translate into broad selling. Many stocks participated in upside moves today, leading the equal-weighted S&P 500 to close 0.2% higher.

The upside action was also driven by a fear of missing out on further gains, momentum after the notable de-escalation in the trade war with China, and an April Consumer Price Index that lacked any tariff inflation shock. Also, it has been enthused by the news that Saudi Arabia, in conjunction with President Trump's visit there, announced a $600 billion investment plan in the U.S.

The 10-yr yield settled 4.50%, which is 13 basis points higher than Friday's settlement and 32 basis points higher than "Liberation Day" when President Trump announced sweeping tariffs on most nations.

• S&P 500: +0.1% YTD
• Dow Jones Industrial Average: -1.0% YTD
• Nasdaq Composite: -1.5% YTD
• S&P Midcap 400: -2.0% YTD
• Russell 2000: -5.7% YTD

Reviewing today's economic data:

• April NFIB Small Business Optimism 95.8; Prior 97.4
• April CPI 0.2% (Briefing.com consensus 0.3%); Prior -0.1%, April Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.1%
  • The key takeaway from the report is the absence of any tariff shock in the headlines. Consumer prices, overall, were held in check, for the most part, including food and gasoline.

Looking ahead to Wednesday, market participants receive the following data:

• 7:00 ET: Weekly MBA Mortgage Index (prior 11.0%)
• 10:30 ET: Weekly crude oil inventories (prior -1.11 mln)