39. Weekly Market Recap: Key Movements & Insights
Tariff Talks Take Center Stage: Markets Pause as U.S. and China Meet 🇺🇸🤝🇨🇳
Stocks Pause After Rally as Trade Talks, Fed Stagflation Warning, and Market Rotation Shape Outlook
After two weeks of robust gains, the S&P 500 took a breather, slipping 0.4% as investors digested a flurry of trade headlines and a cautious Federal Reserve. The pause comes amid heightened uncertainty over tariffs, a shifting global trade landscape, and fresh signals from policymakers in Washington and Beijing.
Trade Tensions Dominate Market Mood
The week began on a downbeat note, with equities retreating as investors considered the ongoing impact of U.S.-China trade tensions. Sentiment shifted late Tuesday after the White House announced a long-awaited meeting with Chinese officials, scheduled for the weekend in Geneva. The news injected optimism, but volatility persisted. On Wednesday, the Federal Reserve held interest rates steady, citing rising stagflation risks—an unusual combination of slowing growth and stubborn inflation—largely attributed to the trade war's disruptive effects.
Thursday brought a brief reprieve: the White House unveiled a trade deal with the United Kingdom, the first major agreement of President Trump’s second term. The announcement helped lift stocks, nearly pushing the S&P 500 into positive territory for the week. However, caution prevailed on Friday, with investors reluctant to extend the rally ahead of the pivotal U.S.-China talks.
Sector performance reflected the market’s crosscurrents. Consumer services, producer manufacturing, and transportation led the way, while health technology, health services, and communications lagged. Gold spiked early in the week as investors sought safety, but it retreated as trade optimism returned. Bitcoin continued its remarkable run, surging 9.6% to reclaim the $100,000 mark. Oil prices jumped 8.7% in hopes of further trade breakthroughs, while Treasury yields climbed.
Looking Ahead: Data and Diplomacy
The coming week promises a flood of economic data and earnings, but the focus remains on Geneva, where U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng.
The stakes are high: tariffs on Chinese goods are currently at 145%, with China retaliating at 125%. President Trump, who aims to reduce the U.S. trade deficit, has signaled a willingness to lower tariffs to 80%—a significant concession, though still above levels that would restore normal trade flows.
“80% Tariff on China seems right! Up to Scott B,” Trump posted on social media, while reiterating demands for China to open its markets to U.S. goods.
Economists warn that even a partial rollback may not suffice to revive trade, with Goldman Sachs projecting inflation could double to 4% by year-end due to the tariff shock. U.S. imports from China have already plunged 60%, and Chinese exports to the U.S. fell 21% last month. Both sides indicate that this weekend’s talks are about de-escalation, not a grand bargain.
“We’ve got to de-escalate before we can move forward,” Bessent said, describing the current tariff regime as “the equivalent of an embargo.”
Fed Holds Steady, Flags Stagflation Risks
The Federal Reserve, meanwhile, is in wait-and-see mode. Chair Jerome Powell and his colleagues left rates unchanged at 4.25% to 4.5%, citing the need for more clarity on the economic fallout from trade policy.
The Fed’s latest statement warned that “risks of higher unemployment and higher inflation have risen,” underscoring the threat of stagflation. While the labor market remains resilient—April saw 177,000 new jobs and unemployment steady at 4.2%—Powell acknowledged that persistent pessimism among businesses and consumers could eventually weigh on growth.
“Conditions in the labor market are broadly in balance and consistent with maximum employment,” Powell said, but he cautioned that the outlook is clouded by policy uncertainty and the potential for further shocks from tariffs.
Upcoming Key Events:
Monday, May 12:
Earnings: Simon Property Group, Inc. (SPG), Constellation Software Inc. (CSU)
Economic Data: ISM None
Tuesday, May 13:
Earnings: Sea Limited (SE), Sony Group Corporation (6758), JD.com, Inc. (JD)
Economic Data: Core Inflation Rate MoM and YoY, Inflation Rate MoM and YoY
Wednesday, May 14:
Earnings: Toyota Motors (TM), Cisco Systems (CSCO)
Economic Data: None
Thursday, May 15:
Earnings: Walmart Inc (WMT), Alibaba Group (BABA), Deere & Company (DE)
Economic Data: PPI MoM, Retail Sales MoM
Friday, May 16:
Earnings: Compagnie Financière Richemont SA (CFR), Lloyds Banking Group plc (LLOY)
Economic Data: Housing Starts, Michigan Consumer Sentiment Prel
Here are the most pertinent earnings details.
Due to the volume of reports during the earnings season, it is not feasible to include every single one in our calendar.
⚡ AI-optimized, human-verified: Our expert team carefully selected Premium market intelligence from Finchat.io data. Explore now →
Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend*:🔴
Trend Signal: 🟢
*When Price and Moving Averages are all green, the Market Trend will also be green
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🟢
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Sector Performance: Winners and Losers from Last Week
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Winners
🏭 Industrials (+1.06%)
Industrials led the week with a 1.06% gain, reflecting steady growth in manufacturing and infrastructure. This performance underscores the sector's resilience and its role in supporting global economic activity.
🛍️ Consumer Cyclical (+0.98%)
Consumer Cyclical stocks posted a 0.98% increase, signaling optimism in discretionary spending and retail. Positive consumer sentiment and economic data likely contributed to this growth.
🛢️ Energy (+0.71%)
Energy gained 0.71%, benefiting from stable commodity prices and consistent demand for energy resources.
🧱 Basic Materials (+0.64%)
Basic Materials rose by 0.64%, driven by steady demand for commodities and positive sentiment in resource-based industries.
⚡ Utilities (+0.52%)
Utilities saw a 0.52% increase, supported by their defensive characteristics and consistent demand, particularly during uncertain market conditions.
💰 Financial (+0.36%)
Financials experienced a modest gain of 0.36%, reflecting stability in banking and financial services amid a favorable economic outlook.
💻 Technology (+0.27%)
Technology posted a 0.27% increase, indicating cautious optimism in the sector, likely driven by innovation and ongoing digital transformation.
Losers
🏢 Real Estate (-0.83%)
Real Estate declined by 0.83%, reflecting challenges in property markets and investment activity.
🛡️ Consumer Defensive (-0.96%)
Consumer Defensive stocks fell by 0.96%, suggesting a slight dip in demand for essential goods and services.
📱 Communication Services (-2.17%)
Communication Services experienced a significant decline of 2.17%, possibly due to reduced demand for digital content and connectivity.
🏥 Healthcare (-4.63%)
Healthcare was the worst-performing sector, dropping by 4.63%. This decline may reflect shifting investor sentiment and challenges within the sector.
🌟 Weekly Industry Leaders 🌟
☀️ Solar (+11.18%)
Leading all industries this week, Solar posted an exceptional gain of 11.18%. The sector’s surge reflects strong demand for renewable energy and advancements in solar technology.
⚛️ Uranium (+8.15%)
Uranium followed closely with an 8.15% increase, driven by growing interest in nuclear energy as a clean and reliable power source.
📦 Business Equipment & Supplies (+7.97%)
Business Equipment & Supplies gained 7.97%, highlighting robust demand for office and industrial equipment.
⛏️ Other Precious Metals & Mining (+7.08%)
The Other Precious Metals & Mining sector rose by 7.08%, benefiting from increased commodity prices and investor interest in alternative assets.
🌱 Utilities - Renewable (+6.93%)
Renewable Utilities delivered a strong performance, gaining 6.93%. This reflects growing investment in clean energy and sustainable power generation.
📡 Broadcasting (+6.93%)
Broadcasting matched Renewable Utilities with a 6.93% gain, likely fueled by increased advertising revenue and digital content demand.
🏅 Gold (+6.5%)
Gold advanced by 6.5%, supported by its safe-haven appeal amid market uncertainties.
💎 Luxury Goods (+6.35%)
Luxury Goods posted a 6.35% increase, reflecting strong consumer demand and resilience in high-end markets.
🥈 Silver (+5.7%)
Silver gained 5.7%, benefiting from its dual role as a precious metal and industrial commodity.
👗 Apparel Manufacturing (+4.9%)
Apparel Manufacturing rounded out the top performers with a 4.9% increase, driven by strong retail demand and seasonal trends.
🚀 Top Market Gainers: Mergers, Bitcoin Treasuries, and Revenue Surprises Ignite Explosive Rallies
ASST Asset Entities Inc (+1160.66%) 🪙
Asset Entities soared after announcing a landmark merger with Strive Asset Management, creating the world’s first-ever Bitcoin treasury company. The new entity, Strive, will oversee more than $2 billion in assets and has unveiled aggressive plans to acquire Bitcoin, capturing the market’s imagination and fueling a historic rally.
NXTT Next Technology Holding Inc (+1086.26%) 🚀
Next Technology Holding Inc. surged as it joined the crypto treasury trend, revealing it has begun acquiring Bitcoin. The move tapped into the current hype around companies adding Bitcoin to their balance sheets, sending shares skyrocketing as investors rushed to gain exposure.
RGC Regencell Bioscience Holdings Limited (+473.08%) 🌿
Regencell Bioscience, based in Hong Kong, experienced a dramatic price spike with no fundamental news. The surge is widely attributed to a short squeeze and possible market manipulation, a recurring theme among thinly traded Hong Kong stocks.
GPUS Hyperscale Data Inc (+459.04%) 💾
Hyperscale Data rocketed higher after announcing preliminary Q1 2025 revenues of $25 million and issuing full-year guidance of $115–$125 million. The strong outlook reassured investors and triggered a wave of buying in the data infrastructure sector.
ZKIN ZK International Group Co Ltd (+248.08%) 🇨🇳
ZK International Group posted massive gains despite the absence of any material news. The stock’s rally is suspected to be another case of market manipulation, a pattern that has become increasingly common among certain China-based equities.
🔻 Biggest Decliners: Liquidations, Scams, and Scandals Crush Valuations
DGLY Digital Ally Inc (-93.54%) 📉
Digital Ally shares collapsed even after receiving a positive listing determination from Nasdaq. The sharp decline suggests that the news failed to reassure investors, who remain wary of the company’s long-term prospects.
VOR Vor Biopharma (-76.41%) 🧬
Vor Biopharma tumbled after announcing it is exploring strategic alternatives to maximize shareholder value. The vague update spooked investors, leading to a steep selloff as confidence in the company’s future waned.
ENGS Energys Group (-70.87%) ⚡
Energys Group became the latest example of a classic IPO liquidation play. The company’s rapid decline highlights a new trend: scammers are increasingly targeting IPOs outside Asia, including the UK and Europe, making them harder to spot. Investors are urged to thoroughly vet companies and their founders before investing in lesser-known IPOs.
EPWK EPWK Holdings Ltd (-66.19%) 🏮
EPWK Holdings, another China-based IPO, suffered a brutal pump-and-dump collapse. The pattern of rapid price inflation followed by liquidation continues to plague the market, especially among newly listed Chinese firms.
CODI Compass Diversified (-60.90%) 🕵️♂️
Compass Diversified plunged after a probe into its Lugano unit uncovered deep accounting problems. The revelations triggered a crisis of confidence, sending shares sharply lower as investors reassessed the company’s risk profile.
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