U.S. capital markets posted strong gains this week, powered by renewed investor optimism and a tech-led rally. The S&P 500 erased its year-to-date losses with a 5.3% weekly jump, while the Nasdaq soared 7.2%, driven by standout performances from Nvidia (+16%) and Meta (+8%).
Softer-than-expected inflation data (CPI at 2.3% YoY for April) and easing Treasury yields added fuel to the rally. However, volatility remained as mixed economic signals and a late-week Moody’s downgrade of U.S. debt stirred concerns over growing fiscal imbalances.
Defensive sectors underperformed, while AI and tech stocks stole the spotlight once again.
S&P 500: Closed at 5,958.38, up 5.27% for the week. YTD 1.30%
Nasdaq Composite: Closed at 19,211.10, up 6.81% for the week. YTD 1.98%
GOLD
Gold prices were volatile, influenced by U.S.-China trade talks, geopolitical tensions (e.g., India-Pakistan escalation), and mixed U.S. economic data. The week’s tariff reprieve reduced safe-haven demand, but gold rebounded on Friday as investors hedged against the U.S. debt downgrade and ongoing trade uncertainties. Domestic gold prices in India rose due to regional tensions.
GOLD dropped -3.67% for the week and 22.07% YTD.
WTI
WTI crude oil surged 2% this week, driven by a renewed optimism around global demand (especially from China and India), and supply concerns tied to potential OPEC+ production moves. Easing U.S. inflation and a softer dollar also boosted sentiment, making oil more attractive to international buyers. Together, these factors helped reverse some of oil’s YTD decline and reignited bullish momentum in the energy market.
Closing Price: WTI crude oil closed at approximately $61.93 per barrel, up 2.06% for the week and -13.46%.
FOREX
The U.S. dollar strengthened 0.73% this week, supported by higher Treasury yields and trade optimism. Weakest Currency: The Australian dollar (AUD) weakened slightly (-0.4% to US$0.6404), potentially among the weaker currencies.
CRYPTO
Bitcoin approached its January high, driven by risk-on sentiment following the U.S.-China tariff pause. Coinbase’s inclusion in the S&P 500 (replacing Discover Financial Services) and its $2.9 billion acquisition of Deribit boosted crypto sector sentiment. Coinbase shares rallied 19% on Tuesday, erasing year-to-date losses. Bitcoin’s 30% monthly gain outperformed the S&P 500’s 9%. Bitcoin closed at approximately $103,146, down -1.39% for the week and 10.08% YTD.
ECONOMIC CALENDAR
May 13: CPI data showed inflation at 2.3% year-over-year, softer than expected, boosting hopes for Federal Reserve rate cuts. Nvidia rose 5.6%, driving S&P 500 gains.
May 16: S&P 500 gained 0.70% to 5,958.38, but a late sell-off followed Moody’s U.S. debt downgrade. Consumer sentiment data disappointed, and inflation concerns persisted.
This Week's Top Gainer in US Markets (excluding small caps under $2B market cap)
Foot Locker stock surged 98.58% in premarket trading after Dick’s Sporting Goods announced a $2.4 billion acquisition deal, offering a 66% premium over Foot Locker’s recent share price. The rally comes despite Foot Locker’s ongoing struggles with store closures, weak Nike sales, and declining mall traffic.
Dick’s plans to keep the Foot Locker brand intact and run it as a standalone business, aiming to leverage its operational scale and expand internationally. While investors cheered the windfall for Foot Locker shareholders, Dick’s stock fell 13%, reflecting concerns about retail headwinds and exposure to global supply chain risks.
UnitedHealth’s stock plunged 23.31% and has lost over 50% in the past month as investors react to a wave of negative developments. The biggest blow: a criminal investigation by the DOJ into potential Medicare fraud in its Medicare Advantage business. The probe, still in early stages, adds to ongoing antitrust and civil inquiries already facing the company. The stock was also rattled by a surprise CEO shakeup, raising concerns about leadership stability. With growing regulatory scrutiny, trust from shareholders is eroding fast—fueling a steep selloff.
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