US Stock Market Today: Dow and S&P 500 Aim for Rare 2025 Comeback
NEW YORK — May 13, 2025 — Wall Street is clawing back early-year losses, and the timing couldn’t be more critical. As of Tuesday, the S&P 500 and Dow Jones Industrial Average are on the brink of pulling off one of the rarest recoveries in modern market history.
After a rocky start to 2025, both indices have staged impressive rebounds. The S&P 500 has officially wiped out its year-to-date losses, while the Dow is nearly there—down just half a percent. If the recovery holds, it would mark only the fourth time since 1950 that the broader market has gone from a losing year-to-date to a net positive by midyear. The last time this happened? The volatile pandemic-driven year of 2020.
Cooling Inflation Fuels Investor Optimism
The rally isn’t happening in a vacuum. A fresh Consumer Price Index (CPI) report released Monday showed inflation growing at just 0.2% month-over-month and 2.3% year-over-year—both lower than economists had expected. That’s given investors more confidence that the Federal Reserve may stay its hand on further rate hikes.
“A sub-2.5% inflation reading is psychologically important,” said Sarah Givens, senior analyst at Alden Group. “It’s giving Wall Street breathing room.”
Big Tech and Chips Lead the Way
Much of the heavy lifting has come from the tech sector. Apple, Nvidia, and Microsoft all posted gains Monday and continued to edge higher Tuesday morning. The Nasdaq Composite, which had lagged behind in Q1, is now outperforming, thanks to renewed enthusiasm around AI and semiconductors.
Financials and industrials are also contributing to the rally, with UnitedHealth and Caterpillar among the Dow’s top movers.
Geopolitical Relief and Trade Tensions Easing
Adding to the market’s momentum is a thaw in U.S.-China trade relations. A new 90-day agreement to pause tariff hikes has been positively received by global investors. It doesn’t solve the broader issues, but it does reduce uncertainty in the near term—a key driver of risk appetite.
Cautious Optimism Heading Into Summer
Still, not everyone is convinced the worst is over.
“There’s a strong technical bounce underway, but the fundamentals remain shaky,” said Aaron Choi, macro strategist at Delphine Securities. “We’ll need several more soft inflation prints and clarity from the Fed before this rally looks sustainable.”
With earnings season winding down and another inflation update due in mid-June, traders are likely to keep one foot on the gas and the other near the brake.