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- Tariffs Cut, Markets Fly – Is the Rally Just Getting Started?
Tariffs Cut, Markets Fly – Is the Rally Just Getting Started?
A trade truce, tech surge, and a surprise insight from a weekend masterclass — all inside.
Market Mastery Digest
May 19, 2025
In partnership with
Trump’s Tariff Chart Just Got a 90-Day Makeover ✂️📉
Hey, Market Mastery crew! 👋
Last week we’ve got a surprise trade truce lighting up the charts, tech stocks flexing their muscles midweek, and a big finish on Friday with all major indexes closing green.
But it’s not just about the past — we’re also gearing up for a packed week ahead with earnings from top retailers, key housing data, and crucial Fed talk.
So grab your coffee (or green tea), because this one's packed with action.
Markets exploded out of the gate Monday after a shock announcement: the U.S. and China agreed to slash tariffs for the next 90 days.
U.S. tariffs on Chinese imports will drop from a punishing 145% to 30%, while China cuts its own from 125% to just 10%.
That’s a major thaw in trade tensions, and Wall Street didn’t hesitate.
The Dow rocketed over 1,000 points (+2.5%), the S&P 500 jumped 2.6%, and the Nasdaq took the lead with a 3.4% surge.
Risk appetite returned with a vengeance — the dollar rallied, gold dipped, and Treasury yields climbed toward 4.45%.
Tuesday brought more good news.
CPI for April came in at 2.3% YoY — slightly cooler than expected — and that was enough to keep the rally alive.
The S&P 500 rose 0.72% and flipped into the green for the year.
Nasdaq soared 1.61%, powered by relief over inflation and Coinbase’s inclusion in the S&P 500.
But not everyone was celebrating — the Dow dipped 0.64%, dragged down by UnitedHealth’s 17.8% drop after its CEO stepped down and the company yanked its forecast. Ouch…
Wednesday was a mixed bag — most stocks struggled, but tech flexed hard.
Nvidia gained 4.2%, Alphabet tacked on 3.7%, and AMD added 4.7%.
Super Micro Computer?
It exploded 15.7% after announcing a new partnership with Saudi-based DataVolt.
While the Dow slid 0.2%, the Nasdaq rose 0.7%, and the S&P 500 eked out a 0.1% gain.
Markets were treading carefully, but tech leadership kept spirits up — and the S&P 500 erased its YTD losses, now just 4.1% off all-time highs.
Thursday saw another split screen.
Cisco Systems climbed nearly 5% after raising its outlook, citing robust AI demand.
That helped push the S&P 500 up 0.41% and the Dow 0.65% higher.
But the Nasdaq slipped 0.18% as Amazon and Walmart struggled under the weight of tariff-related worries.
The biggest blow?
UnitedHealth collapsed 11% after reports of a DOJ criminal probe into Medicare billing — marking a five-year low.
Still, most sectors finished green, and investor optimism about trade deals continued to bubble.
Markets closed out the week with style.
Friday’s session saw the S&P 500 rise 0.7% to 5,958.38 — its fifth straight gain, capping a massive 5.3% weekly climb.
The Dow added 0.8% and the Nasdaq rose 0.5%, with the latter posting a stunning 7.2% weekly gain.
Even small caps joined the party, with the Russell 2000 up 4.5%.
What’s fueling this rally?
A potent cocktail of tariff relief and hopes for a Fed rate cut as inflation continues to cool.
Risk is back on the menu.
Earnings Season (Retail Spotlight)
Get ready — the spotlight shifts to the retail giants.
This week we’ll hear from Home Depot, Lowe’s, Target, TJX, Ross, and Ralph Lauren.
With the consumer still in the driver’s seat of the economy, these results could sway sentiment in a big way.
Analysts are watching spending trends closely, especially after last week's market euphoria.
Real Estate & Jobs
April housing data is due — existing home sales on Thursday and new home sales on Friday.
Combined with the S&P Global Flash PMI and weekly jobless claims, these numbers will offer a health check on the real economy.
Expect volatility if the data surprises in either direction.
Fed Watch
Eyes (and ears) will be on Fed Vice Chair Jefferson, Gov. Bowman, and NY Fed President Williams as they hit the speaking circuit.
President Trump’s public call for rate cuts adds extra pressure — will Fed language hint at a pivot?
Markets are listening closely.
Tech Earnings on Deck
Don’t sleep on Palo Alto Networks, Snowflake, Intuit, and Workday — all set to report.
With AI hype still red-hot and enterprise software trends in flux, their numbers could spark movement in the tech sector again.
If last week taught us anything, it’s that markets love surprises — especially the good kind.
A 90-day tariff pause.
Cooling inflation.
Tech surging.
And a five-day win streak for the S&P 500.
That’s not just momentum — that’s a signal.
But before we get carried away, remember: earnings and Fed signals still hold the keys to the next leg.
On a personal note — I spent the weekend attending an intensive trading masterclass, which is also why this newsletter is dropping a little later than usual 😅
The session covered market setups, price action strategies, and trading psychology.
I was genuinely blown away by the clarity and depth of insights from the instructor — so much so that I decided to sign up for the mentorship program on the spot.
If you’re serious about leveling up your trading game, I’d highly recommend checking out the same masterclass.
(yep, it’s an affiliate link — but I only share what I truly believe adds value, and this one’s too good to keep to myself).
See you next week.
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