MAG-7 drives market gains 14/05/2025

HOT stories for today

US market wrap:
 

• U.S. stock markets closed higher on Tuesday, as investors reacted positively to softer-than-expected inflation data and ongoing optimism surrounding U.S.-China trade relations. The S&P 500 and Nasdaq Composite both posted gains, with the tech-heavy Nasdaq climbing 4.4% to finish at 18,708.34 points. The Consumer Discretionary Select Sector SPDR (XLY) jumped 5%, while the Technology Select Sector SPDR (XLK) climbed 4.6%. The Industrials Select Sector SPDR (XLI) added 3.1%. Ten of the 11 sectors of the benchmark index ended in positive territory.
• The rally was fueled by the latest Consumer Price Index (CPI) report, which showed inflation rising at a slower pace than anticipated, reinforcing expectations that the Federal Reserve may consider rate cuts later this year. Additionally, the recent 90-day tariff truce between the U.S. and China has alleviated some trade tensions, further boosting investor confidence.

MAG-7 drives market gains
 

• The "Magnificent Seven" tech giants—Apple, Microsoft, Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla—continued to lead the market's upward trajectory. These companies collectively added significant market capitalization, with Amazon and Apple shares rising notably.
• The surge in these stocks reflects investor optimism about the tech sector's resilience and growth prospects, especially in areas like artificial intelligence and cloud computing. Analysts caution, however, that while the current momentum is strong, sustained growth will depend on continued earnings strength, successful integration of AI technologies, and global tech spending trends.

Stocks on the move:

• NVIDIA Corp (NVDA): Shares rose by 5.6% to $129.93, driven by strong demand for AI chips.
• Boeing Co. (BA): The stock increased by 2.4% to $203.42 after announcing new aircraft orders.
• Coinbase Global Inc (COIN): Shares surged 23.9% to $256.90 amid a rally in cryptocurrency markets.
• First Solar Inc (FSLR): The stock climbed 22.7% to $191.60 following favorable policy developments in renewable energy.

Today’s action

• Asia-Pacific markets traded higher on Wednesday, buoyed by easing trade tensions between the U.S. and China. Chip stocks led the gains, reflecting optimism in the tech sector. U.S. futures also pointed to a positive open, continuing the momentum from the previous session.
• Futures linked to the S&P 500 and Nasdaq 100 traded flat early Wednesday, while Dow Jones Industrial Average futures edged up by 42 points, or 0.1%.Investors are also awaiting key economic data, including inflation figures and retail sales, which could provide further insights into the health of the global economy. Additionally, several Federal Reserve officials are scheduled to speak this week, potentially offering clues about future monetary policy decisions.

Watchlist: COIN, PLTR, META, MSFT, AMZN, NVDA, AAPL

Bitcoin

• Bitcoin (BTC) maintained its position above the $103,000 mark, trading at $103,495.57 as of 9:30 AM on May 14, up 1.57% from the previous day. The world's largest cryptocurrency has shown resilience amid broader market volatility.  Ethereum (ETH) is currently trading around $2,445, following a recent surge to a local high of $2,623 earlier this week. The market is showing signs of consolidation, with key support levels being tested.
• Analysts suggest that the momentum in ether could continue if the network's upgrades lead to increased adoption and if the broader cryptocurrency market remains bullish. However, they also caution that regulatory developments and macroeconomic factors could influence future performance.
  Watchlist: Bitcoin: 74 000-105 500, Ethereum:1500-2800, Solana: 80-180
   

Forex

• Japanese Yen (JPY): The yen remains on the front foot against the U.S. dollar for the second straight day on Wednesday, reacting to easing trade tensions and expectations of potential policy shifts by the Bank of Japan. The currency's strength reflects investor confidence in Japan's economic outlook amid global trade developments.
• Euro (EUR/USD): The euro trades in positive territory near 1.1195 in Wednesday's Asian session, as U.S. CPI inflation came in slightly below estimates in April, reducing bets on ECB rate cuts after U.S.-China talks. The euro's strength indicates a return of risk appetite among investors, favoring the common currency.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD): Gold prices drift lower as the U.S.-China trade truce optimism undermines safe-haven demand. Tuesday's U.S. CPI print reaffirms Fed rate cut bets and keeps the U.S. dollar bulls on the defensive. The precious metal's decline reflects a shift in investor sentiment towards riskier assets amid improving trade relations.
• WTI Crude Oil: WTI price gains momentum to around $63.25 in Wednesday's early Asian session. The U.S. and China slashed tariff rates by 115%, supporting the rally amid easing trade tensions. The increase in oil prices indicates expectations of higher demand as global economic activity picks up.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00

Key Economic Events Today:

EST time
05:15 am: USD FOMC Member Waller Speaks
09:10 am: USD FOMC Member Jefferson Speaks
10:30 am: USD Crude Oil Inventories


Earnings

BMO (Before the US Market opens)
DT                Dynatrace Inc.
MMYT          MakeMyTrip Ltd
AMC (After the US Market closes): CSCO, STE, EBR

 

The TEFS Analyst team wishes you a successful day!