What To Do After the S&P 500 Erased 2025 Losses
On Tuesday, Nvidia (NVDA) said that it would sell 18,000 of its top-end artificial intelligence processors to Saudi Arabia customers. That sent NVDA stock up by 5.6%. It lifted the magnificent seven stocks, including Tesla (TSLA). It pushed the S&P 500 (IVV) back into positive returns for 2025.
What should investors who missed the recent rally do?
Investors who sold during the “Liberation Day” stock market panic may need to wait for stocks to pull back. However, the tariff trade war between the U.S. and China is easing. The U.S., for example, plans to cut the “de minimis” tariff for goods from China to as low as 30%. Officially, the de minimis duty is 54%, down from 120% after the trade negotiations in Geneva.
This change will benefit package delivery firms, including FedEx (FDX), UPS (UPS), and DHL. Chinese e-commerce firms may also see orders rebound. The lower tariff helps Chinese retailers on PDD (PDD), which runs Temu, and Alibaba (BABA), which runs AliExpress.
Inflation Eased
In April, the Bureau of Labor Statistics reported that the consumer price index increased 2.3% Y/Y. This is 10 bps below expectations. Lower inflation, a strong job market, and lower tariffs are all tailwinds for the economy.
Investors may stay on course by holding their index ETFs. The chances are high for stock markets continuing on their uptrend.
