Market Wrap | S&P 500 Rises Amid Tariff Concerns and Trade Pact News

On May 8, 2025, the S&P 500 Index rose by 0.58%, the Dow Jones Industrial Average increased by 0.62%, and the Nasdaq Composite Index surged by 1.07%. The market's positive performance comes amidst growing concerns over tariffs, which could lead to inflation and unemployment, potentially delaying the Federal Reserve's rate cuts until late 2025. Additionally, the US-UK trade pact will retain a 10% tariff on certain goods, further complicating trade dynamics and influencing market sentiment.

In today's market, several sectors outperformed the S&P 500, including technology, non-essential consumer goods, energy, materials, industrials, and financials. Notably, non-essential consumer goods, energy, materials, and industrials showed exceptional performance. Conversely, utilities, healthcare, essential consumer goods, and real estate sectors moved in the opposite direction of the S&P 500.

Palantir Technologies Inc. shares surged 7.85% today, driven by the announcement of new government contracts. This news has boosted investor confidence in the company's future revenue growth. Meanwhile, Tesla Inc. saw its stock rise 3.11%, following a new trade agreement between the U.S. and U.K. that has lifted market optimism.

Twin Vee PowerCats surged over 192%, driven by a strategic partnership aimed at expanding its market presence. Asset Entities rose nearly 127%, bolstered by its merger with Strive Asset Management, positioning it as a unique publicly-traded Bitcoin treasury company. Meanwhile, Accelerate Diagnostics plummeted over 70%, filing for Chapter 11 bankruptcy due to significant debt and cash burn. Vor Biopharma also dropped over 70%, facing substantial financial challenges with no revenue and ongoing losses.

The US Commerce Secretary has announced plans to focus on large economies for upcoming trade deals, with rollouts expected within a month. A new US-UK trade deal has been finalized, featuring reduced tariffs on UK-made cars and a yearly export quota for UK car manufacturers, while removing UK market barriers for US exports including ethanol and beef. The US April budget surplus reached $256 billion according to CBO estimates, showing a positive fiscal outlook. Additionally, Trump privately encouraged increasing the top tax rate and addressing the carried interest loophole, indicating potential tax policy shifts.