Wall Street Surges as Coinbase Joins Index and U.S.-China Tariffs Pause

Tech Gains and Tariff Relief Drive Major Index Rally

Wall Street rallied on May 13, 2025, with the S&P 500 closing at 5,886.55—marking a full recovery from its early-year downturn. The 0.72% gain was driven by a potent combination of tech sector strength, easing inflation, and a temporary truce in U.S.-China trade tensions. The Nasdaq Composite outperformed, soaring 1.61% to finish at 19,010.09, as investors piled into high-growth AI and cryptocurrency-related stocks.

The standout performer of the day was Coinbase, which surged nearly 24% after being added to the S&P 500. The move marks the first time a cryptocurrency exchange has joined the prestigious index, replacing Discover Financial Services. Coinbase’s rise reflects investor optimism in blockchain infrastructure amid a maturing crypto regulatory framework. Business Insider provides full coverage of Coinbase’s inclusion.

Meanwhile, the Dow Jones Industrial Average dipped 0.64% to 42,140.43, dragged down by a steep selloff in UnitedHealth Group. The insurer suspended its full-year forecast following leadership uncertainty, prompting a cautious response from institutional investors.

April’s inflation data also contributed to bullish sentiment. The U.S. Consumer Price Index (CPI) increased by just 0.2%, suggesting that the Federal Reserve’s tightening cycle may be nearing its end. Markets interpreted the data as a potential green light for a pause in future rate hikes, further fueling risk-on momentum across equities.

Fed Watch, Retail Earnings, and Market Signals Shape Today’s Outlook

As investors head into the May 14 session, key macroeconomic and earnings developments are expected to shape short-term direction. Market participants are paying close attention to upcoming remarks from Federal Reserve Chair Jerome Powell and other officials. Any new signals on rate policy could shift sentiment significantly, especially with CPI figures now cooling.

In addition, earnings from top retailers like Walmart are expected to provide insight into consumer strength. If retail data aligns with the inflation cooldown, analysts anticipate further upward movement in consumer discretionary stocks.

Technically, the S&P 500 has now broken above its 200-day moving average, reinforcing the potential for sustained bullish momentum. However, traders remain cautious about possible pullbacks given recent volatility and geopolitical risks, particularly in Europe, where the EU has proposed retaliatory tariffs on U.S. imports.

Goldman Sachs recently updated its forecast, lifting its S&P 500 year-end target to 6,100, citing improved economic resilience and easing geopolitical pressures. MarketWatch’s update on the Goldman forecast highlights renewed investor enthusiasm.

As Wall Street enters mid-May, investor optimism appears grounded in tangible macro and sector-specific trends. If inflation remains subdued and earnings continue to surprise to the upside, the rally may extend deeper into Q2 2025.