40. Weekly Market Recap: Key Movements & Insights

S&P 500 Recovers! 🏆📈 Trade Optimism vs. Moody’s Credit Cut

Stocks Recover 2025 Losses as Trade Talks, Moody’s Downgrade, and Inflation Data Shape Market Sentiment

After a challenging start to the year, the S&P 500 has finally erased its 2025 losses, climbing 2.6% this week. Investors cheered a temporary U.S.-China tariff reduction, a softer-than-expected inflation report, and strong performance in key sectors, even as Moody’s downgraded U.S. debt and consumer sentiment hit near-record lows.

Trade Optimism Fuels Market Rally

The week began on a high note after the White House announced a temporary agreement with China to lower tariffs, a move widely seen as a step toward de-escalating trade tensions. Both countries agreed to reduce tariffs to 80% and 100%, respectively, from their previous highs of 145% and 125%. The news sparked optimism that the agreement could help stave off a recession, lifting equities across the board.

By Tuesday, the S&P 500 had fully retraced its 2025 losses, closing above the year’s opening level. Nvidia (NVDA) was a stan…