The US stock market closed on a high note on May 16, 2025, erasing its loss for the year. The Dow Jones and S&P 500 indices scored their fifth consecutive day of gains, driven by easing trade-war tensions between the US and China.
Investors breathed a sigh of relief as tensions cooled, causing stocks to surge. The news came on the heels of President Trump’s announcement that countries will soon receive letters detailing their tariff rates. This move is expected to ease further tensions.
Meanwhile, consumer sentiment fell for the fifth consecutive month in May, fueled by growing inflation worries. Imported goods costs also showed signs of price pressures due to tariffs.
Other notable developments included Warren Buffett’s Berkshire Hathaway selling its stake in Citigroup and trimming its holdings in Bank of America and Capital One.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-set-for-gains-s-p-500-set-to-battle-for-fifth-straight-win