ADDX GO Market Morning Wrap - 13th May

Stock Market

On Monday (May 12), U.S. stocks opened higher and closed sharply higher. The three major indexes all closed at their highest levels since March.

 

By the close, the S&P 500 index rose 3.26% to 5,844.19, and the Nasdaq Composite index rose 4.35% to 18,708.34, both reaching new closing highs since March 3. The Dow Jones index rose 2.81% to 42,410.10, reaching a new closing high since March 27.

 

Earlier in the day, the "Joint Statement on the China-U.S. Economic and Trade Talks in Geneva" was released. The two sides promised to take a series of measures by May 14, 2025, including modifying and canceling the tariffs imposed on each other's goods, and suspending or canceling non-tariff counter-measures.

 

The statement also said that the two sides will establish a mechanism to continue consultations on economic and trade relations and may hold consultations in China, the United States, or a third country. The shares of U.S. companies most dependent on Chinese goods rose the most. Best Buy closed up 6.56%, Dell Technologies rose 7.83%, and Amazon rose 8.07%.$BBY $AMZN 

 

 Carol Schleif of BMO Private Wealth said that China and the United States have established a framework for continuous discussion, which is what the stock market hopes to see.

Key Events

• Joint Statement on the China-U.S. Economic and Trade Talks in Geneva: The United States will (1) modify the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macau Special Administrative Region) as stipulated in Executive Order 14257 of April 2, 2025. Among them, the 24% tariff will be suspended for the initial 90 days, while retaining the remaining 10% tariff on these goods as provided in the executive order; (2) cancel the tariffs imposed on these goods under Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025.
• Trump's Pharmaceutical "Most-Favored-Nation Pricing" Policy Released: Benchmarking Developed Countries, Completing Quotations within 30 Days: U.S. President Trump held a White House press conference to introduce and sign an executive order on reducing the price of prescription drugs in the United States. According to the text of the executive order, this policy aims to benchmark the pricing of prescription drugs in the United States with that of "other developed countries" and requires pharmaceutical companies to provide the "most-favored-nation price" to the U.S. market. The White House emphasized in the document that even after calculating the discounts of pharmaceutical companies, the price of branded drugs paid by the United States is still more than three times the price paid by other OECD countries.
• The EU is Reportedly to Announce a New Round of Sanctions against Russia on Wednesday: According to media reports citing sources, the EU plans to announce a new round of sanctions against Russia on May 14 (Wednesday). This will be the 17th round of sanctions against Russia by the EU since the outbreak of the Russia-Ukraine conflict in February 2022.
• Will the India-Pakistan Clash Continue? Modi: Military Operations are only "Suspended": At night local time on Monday, Indian Prime Minister Modi delivered a televised address to the nation, saying that India has only "suspended" its military operations against Pakistan and will "retaliate in its own way" against any attacks.

Forex & Commodities

The settlement price of COMEX gold futures fell $116, or 3.47%, to $3,228 per ounce.

 

The price of light crude oil futures for June delivery on the New York Mercantile Exchange rose 93 cents to close at $61.95 per barrel, an increase of 1.52%. The price of Brent crude oil futures for July delivery on the London Mercantile Exchange rose $1.05 to close at $64.96 per barrel, an increase of 1.64%.

 

At the end of trading in New York, the U.S. dollar index rose 1.39% to 101.81. Most non-U.S. currencies fell.

 

The euro fell 1.43% against the U.S. dollar to 1.1088, the British pound fell 0.97% against the U.S. dollar to 1.3176, the U.S. dollar rose 2.14% against the Japanese yen to 148.4730, and the U.S. dollar rose 1.69% against the Swiss franc to 0.8456.

Key Events

• Fed Governor Kugler: Trade Tensions Ease, but Tariffs will still have a Significant Impact: Fed Governor Kugler said local time on Monday that the Trump administration's tariff policy may push up inflation and drag down economic growth, even after the trade tensions between China and the United States have eased.
• Russian Oil Production will Continue to Recover to 10.8 Million Barrels per Day: Russian Deputy Prime Minister Novak said in an article published in the Energy Policy Journal on May 12 that due to global demand growth, domestic investment, and tax changes, Russia is expected to continuously increase its oil production to 10.8 million barrels per day in the near future.

Cryptocurrency

Bitcoin was down 2.5% at $101,901, and the 24-hour trading volume of the cryptocurrency rose 27.9% to $62.22 billion.#btc 

 

Ethereum (ETH-USD) fell 2.4% to $2,459.

 

XRP (XRP-USD) gained 4.9%, BNB (BNB-USD) rose 0.8%, and Solana (SOL-USD) dropped 1.2%.

 

Dogecoin (DOGE-USD) dipped 2.2%, while Cardano (ADA-USD) fell 1%.

 

The total market value of the cryptocurrency industry decreased 1.9% in the past 24 hours to $3.27 trillion, with trading volume rising 26.7% at $176.31 billion.

Key Events

• Coinbase to be Included in the S&P 500 Index: According to S&P Dow Jones Indices, the cryptocurrency exchange Coinbase will be included in the S&P 500 index, replacing Discover Financial.
• The Bitcoin Mining Company Invested by the Trump Family Goes Public through a Reverse Merger: On Monday, the U.S. Bitcoin mining company Hut 8 announced that the holding subsidiary "American Bitcoin" jointly established by the listed company and members of the Trump family in March this year will merge with Gryphon Digital Mining through a full-stock exchange. Gryphon closed up 173.08% on Monday.