Market Monitor News May 14 ( Tech UP - Healthcare stocks DOWN)

Wall Street Rises as Inflation Eases and Trade Optimism Grows

S&P 500 and Nasdaq Gain Ground, Dow Slips on Health Sector Woes

On Tuesday, U.S. stock markets extended recent gains as investors welcomed easing inflation figures and signs of de-escalation in the U.S.-China trade dispute.

The S&P 500 rose by 0.7%, while the Nasdaq advanced 1.6%. The Dow Jones bucked the trend, falling 0.6%.

UnitedHealth Shock Pulls Down the Dow

UnitedHealth (UNH | -17.79%) weighed heavily on the Dow after the health insurance giant withdrew its full-year outlook, citing higher-than-expected medical costs for new Medicare Advantage clients.

In response, the company announced the return of former CEO Stephen Hemsley to the helm. This leadership reshuffle follows a turbulent period, including the tragic shooting of a top executive late last year.

The downgrade also had a ripple effect across the healthcare sector:

CVS Health (CVS | -6.65%)

Elevance Health (ELV | -9.91%)

Humana (HUM | -9.48%)

Tech Stocks Shine: Tesla and Nvidia Hit Milestones

Tesla Surges Back Above $1 Trillion

Tesla (TSLA | +4.93%) soared for a second consecutive day, climbing nearly 5% Tuesday after a 6.8% gain Monday. This rally pushed its market cap back above the $1 trillion mark for the first time in four months.

After a difficult start to the year due to disappointing sales and CEO Elon Musk’s polarizing public stances, the stock is now staging a strong recovery.

Nvidia Crosses the $3 Trillion Threshold

Nvidia (NVDA | +5.6%) rocketed past the $3 trillion market cap level following news of a major AI hardware deal with Saudi Arabia’s Humain. The agreement includes an initial delivery of 18,000 Blackwell GPUs, with the potential for hundreds of thousands more.

CEO Jensen Huang announced the deal in Riyadh, coinciding with a diplomatic visit by U.S. President Donald Trump.

Amazon (AMZN | +1.31%) rose after announcing a logistics partnership with FedEx for last-mile delivery.

Meta Platforms (META | +2.6%) continued its upward trajectory following a powerful Monday rally by the so-called Magnificent Seven tech giants, which collectively added over $830 billion in market cap that day.

Inflation Cools, Markets Cheer — But Analysts Remain Cautious

April inflation in the U.S. edged down to 2.3% from 2.4%, a modest improvement that beat analyst expectations. Lower gasoline prices were a key factor.

Though welcomed by markets, some economists urged caution. "The true economic impact of Trump’s trade policy may not have hit yet," warned Oliver Allen of Pantheon Macroeconomics.

President Donald Trump, currently in Saudi Arabia, praised the data and renewed calls for the Federal Reserve to cut interest rates. “No inflation… The Fed must cut rates like Europe and China,” he posted on Truth Social.

U.S.-China Trade Truce Sparks Investor Optimism

Markets were already buoyant following Monday’s announcement of a preliminary trade agreement between the U.S. and China, involving the mutual lowering of import tariffs. The decision to reduce tariffs from as high as 145% to as low as 10% was interpreted as a major easing of tensions.

Coinbase Makes History with S&P 500 Inclusion

Coinbase (COIN | +24%), the cryptocurrency exchange, surged on news it will join the S&P 500 on May 19. This marks a historic moment, as it's the first pure-play crypto company to enter the index. The move is being hailed as a milestone for the mainstream adoption of digital assets.

Oil Prices Rally for Fourth Consecutive Day

Oil markets extended their winning streak.

• WTI crude closed 2.8% higher at $63.67 per barrel.

• Brent crude gained 2.6% to $66.63.

The rally was fueled by reduced fears over global demand, following the trade truce between the U.S. and China. A new Republican-led proposal to boost U.S. strategic oil reserves also lifted prices.

Goldman Sachs raised its Brent price forecast by $3–$4 per barrel due to the lowered recession risk.

Notable Decliners: Hertz, Rigetti Struggle

Some companies faced a tougher day:

Hertz Global (HTZ | -16.93%) fell after reporting a larger-than-expected quarterly loss.

Rigetti Computing (RGTI | -14.59%), a quantum computing firm, disappointed with falling revenue and widening losses.

Small Business Sentiment Declines Again

The confidence index for small businesses in the U.S. fell for a second consecutive month in April, continuing to trend below the long-term average. This adds a cautious note amid otherwise improving economic indicators.

What’s Next?

All eyes are now on upcoming U.S. oil inventory data and further developments in U.S.-China negotiations.

With inflation easing and earnings season providing upside surprises, investors will be watching to see whether this market momentum can be sustained.

Next to read: Market Monitor Trends and Breadth, May 14