On Tuesday, May 13, the S&P 500 prices had made up whatever losses it had experienced so far in 2025. This stunning reversal happened after months of market disturbances and negative trends. Investors were pleased to hear about improvements in international trade and in the technology sector. The main index went up by about 0.72%, an addition to Monday’s widespread market gains. The index is now higher than it has been since mid-March this year.

Key Takeaways:

• U.S. stocks have recovered all 2025 losses because of the tariff truce with China and Nvidia’s Saudi chip contract.
• The stock of Nvidia rose 5% after it disclosed an agreement to sell 18,000 chips to Humain, an AI startup in Saudi Arabia.
• The advance in the stock market was mostly led by the tech sector, with Meta Platforms up 2.6%, while UnitedHealth fell 17% after it suspended its forecast.
• Analysts continue to encourage investment in U.S. equities, underlining that a clear policy environment and diminished recession concerns will keep the rise going.

Nvidia’s announcement of its strategic partnership

Tech companies took the lead today, as Nvidia stock closed trading more than 5% higher. In addition, Meta Platforms registered a strong 2.6% growth. At the same time, the Nasdaq Composite index ended trading on Tuesday with a gain of nearly 1.6%. Although, the Dow Jones Industrial Average saw a 0.64% drop in the opposite direction.

The announcement made by Nvidia of a significant partnership with Saudi Arabia played a major part in Tuesday’s market rally. It was announced that Nvidia will be working with Humain, which is an artificial intelligence start-up supported by Saudi Arabia’s sovereign wealth fund. In line with the deal, Nvidia will send 18,000 chips to the kingdom. The partnership is a reflection of the sustained global interest in Nvidia’s cutting-edge chip technology. Such news provided further reassurance to investors about the tech sector’s growth.

The Tit-For-Tat Trade War Becomes Civilized After US-China Agreement

The rebound in the market experienced lots of momentum when the news that the trade tension between the United States and China is being eased. The Trump administration entered into a 90-day deal with China to diminish the reciprocal tariffs. This short ceasefire has had a huge impact on the market sentiment after months of fear. Investors earlier had feared the possible economic consequences of President Trump’s tariff policies. The S&P 500 prices had declined by 17 % within this period of uncertainty.

Economic Outlook Improves

On Tuesday, a piece of good economic news also occurred: the inflation report was issued, and it was worse than expected. Such data helped broaden market confidence in the state of the economy. According to JPMorgan, the short-lived deal with China has significantly mitigated this year’s recession risks. We now see more confidence from the financial experts as regards the movement of the market. ClearBridge Investments expects that U.S. equities will continue to trend upwards in the next year.

In other major market happenings, S&P Dow Jones Indices said that Coinbase will be listed in the index of S&P 500 prices. The crypto exchange operator will succeed Discover Financial Services next week. Furthermore, Microsoft declared a downsizing of employees by 3%.

Conclusion: S&P 500 Prices

Financial analysts are picking a bright future for U.S. equities in the next few months, with policy clarity and lower-than-expected inflation helping trigger the rally. Though the shares of UnitedHealth tanked after it suspended its 2025 guidance and the Chief Executive Officer, Andrew Witty, resigned. The S&P 500 prices is now at its all-time high since mid-March.