In the early hours of May 14 Beijing time, U.S. stocks closed mixed on Tuesday (May 13). The U.S. Department of Commerce's removal of AI diffusion regulations from the Biden era spurred a general rise in tech stocks, with the Nasdaq Composite Index climbing over 300 points. Meanwhile, the U.S. Consumer Price Index (CPI) for April grew by 2.3% year-over-year, lower than expected and marking a four-year low, indicating inflation levels remain stable. However, some economists noted that the data has not yet fully reflected the price pressure stemming from Trump's trade war.
U.S. Stock Performance: Nasdaq Rises Sharply, Dow Falls
The Dow Jones Industrial Average fell 269.67 points, or 0.64%, to 42,140.43 points; the Nasdaq Composite Index rose 301.74 points, or 1.61%, to 19,010.08 points; and the S&P 500 Index rose 42.36 points, or 0.72%, to 5,886.55 points. The S&P 500 Index ended its decline since the beginning of the year, turning to a slight increase, closing at 5,881.63 points by the end of 2024.
Tech stocks played a key role in this rebound, with Nvidia's stock price surging. It is reported that the U.S. Department of Commerce has lifted restrictions on the diffusion of artificial intelligence (AI) technology, and the Trump administration is considering allowing the UAE to purchase over one million advanced Nvidia chips. This policy shift has prompted a strong performance in AI tech stocks.
Corporate News: UnitedHealth Group Suffers a Heavy Blow
On the other hand, UnitedHealth Group's stock plummeted as it announced CEO Andrew Witty's immediate resignation for "personal reasons" and withdrew its 2025 performance outlook. The company's stock price fell by 17.79%, causing a significant market impact.
U.S.-China Tariff Agreement: Easing Market Pressure
In the international arena, following weekend talks in Switzerland, the U.S. and China reached an agreement to significantly lower reciprocal tariffs. According to the "U.S.-China Geneva Trade Talks Joint Statement," the U.S. will reduce the comprehensive tariff on Chinese goods from 145% to 30%, while China's tariffs on U.S. goods will drop from 125% to 10%. This agreement alleviated tariff pressure on the market, providing support for stocks.
U.S. Treasury Secretary Scott Besant said in an interview that he expects to meet with Chinese representatives again in the coming weeks to finalize a broader agreement. This news is undoubtedly positive for the market, further boosting investors' confidence in global economic recovery.
Summary
Although U.S. stocks showed mixed results, the strong performance of tech stocks and the U.S.-China tariff reduction agreement brought some positive impact to the market. As the Federal Reserve's rate-cut expectations and inflation pressures change, investors' focus on future economic prospects will continue to influence market trends.
