Live Updates: S&P 500 Aims for a Five-Day Rally as Stock Futures Climb

On May 12, 2025, stock futures climbed as investors reacted positively to recent developments in U.S.-China trade relations and fresh inflation data. Futures linked to the Dow Jones Industrial Average rose by 111 points, marking a 0.3% increase. The S&P 500 and Nasdaq-100 futures followed suit, adding 0.2%.

This uptick comes after a 90-day truce in tariffs was reached between U.S. and Chinese officials. This agreement calmed fears over possible trade escalations, boosting investor confidence. For the week, the S&P 500 has seen a rise of 4.5%, and the Nasdaq has surged over 6%.

Callie Cox, a chief market strategist at Ritholtz Wealth Management, noted the recent market trends highlight a sense of relief from tariff news. However, she cautioned that concerns about the long-term economic implications of these tariffs persist.

A recent inflation report revealed that wholesale prices fell 0.5% in April, which was good news for many investors. Earlier this week, the consumer price index indicated a 12-month growth rate of just 2.3%, the lowest since February 2021. Lower inflation can often lead to a more favorable environment for stocks, as it can result in lower interest rates.

Despite the positive market sentiment, some companies, including Walmart, have signaled potential price hikes due to soaring costs driven by tariffs. This raises concerns among investors about hidden economic pressures. Cox highlighted that while the market appears upbeat now, there are underlying worries about cost increases that could soon influence sentiment.

On Friday, expect potential market volatility as over $2.8 trillion worth of options contracts will expire, the largest amount recorded for a May trading day.

Investors will be watching closely for two crucial economic indicators: housing starts and the University of Michigan’s consumer sentiment survey. These reports could provide further insights into the economic landscape and investor mood.

In today’s market, understanding how trade policies and inflation impact the economy is essential. Experts stress the importance of keeping an eye on these developments. For ongoing insights, refer to resources like the U.S. Bureau of Labor Statistics or trustworty financial news outlets for the latest updates.

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