Stock Market Summary – May 13, 2025

1. Airbnb unveiled a redesigned app to increase its service offerings beyond home bookings, including catering and personal training. The changes come after the company’s shares dropped due to disappointing revenue guidance from macroeconomic uncertainties and travel softness amid the pandemic.

2. Nvidia’s agreement to sell around 18,000 AI chips to Saudi Arabian AI startup Humain has significantly impacted the chip giant’s stock, with shares jumping over 6%. This deal is a continuation of Nvidia’s efforts to broaden its customer base beyond American tech companies like Microsoft, Amazon, Meta Platforms, and Alphabet. The AI chips will be used in Humain’s future data centers, contributing to Saudi Arabia’s aggressive push towards economic diversification from oil.

3. Major market shifts include Nvidia and Boeing witnessing a jump in shares, with Nvidia benefitting from its deal with Saudi Arabia’s Humain and Boeing seeing benefits from reported lifted ban on Boeing in China. However, UnitedHealth Group’s stock tumbled by 16% due to the announcement of CEO Andrew Witty’s resignation and withdrawal of its 2025 guidance. Caterpillar also experienced a share boost after an upgrade by Baird.

4. Coinbase’s shares surged by 22% following the announcement that it will replace Discover Financial Services in the S&P 500 index prior to trading on May 19. Other significant market movers include First Solar, due to an upgrade by Wolfe Research, Hertz Global Holdings with a 15% slump after underwhelming Q1 results, and Caterpillar with a share boost from Baird’s upgrade.

5. Following a temporary agreement to reduce tariffs between the US and China, the Dow Jones Industrial Average closed up 1,160.72 points or 2.81%, the S&P 500 progressed by 3.26%, and the Nasdaq Composite rose by 4.35%. However, the exact impact of President Trump’s new executive order aiming to lower prescription drug prices is still uncertain. In other trade news, the US collected a record $16.3 billion in customs duties in April due to Trump’s tariffs. Lastly, UnitedHealth’s CEO, Andrew Witty, is stepping down for personal reasons, leading to a 16% drop in the company’s stock.

In a significant financial fraud case, Peter Coker Jr. has been sentenced to 40 months in prison for his role in artificially inflating the stock share prices of deli owner Hometown International and E-Waste. The scheme led to a market capitalization of $100 million for Hometown International despite it owning only a small money-losing deli in South Jersey. Meanwhile, E-Waste had an even larger market cap, despite having no business operations.

In the stock market, Coinbase shares soared over 22% representing its sharpest rally since President Trump’s election victory due to the crypto exchange’s inclusion in the S&P 500. Inclusion often results in an increase in value as funds aligned with S&P 500 will add the company to their portfolios.

In contrast, Hertz Global saw its shares plummet by over 20% following disappointing first-quarter results and a $250 million stock offering. During the earnings call, the embattled rental car company also announced a strategy to offer fewer cars for rent due to lower bookings and impacts from Trump’s auto tariffs.

In broader market news, Nvidia’s shares rose by more than 5.5% after securing a deal to supply AI chips for Saudi data centers. This news followed an announcement by President Trump that Saudi Arabia will invest $600 billion in the U.S., including $14 billion in products from GE Vernova and $5 billion from Boeing.

Senate Minority Leader Chuck Schumer has announced his intention to block Department of Justice political nominations in protest of President Trump’s plans to accept a $400 million luxury jet from Qatar.