Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – May 11, 2025 at 07:00 AM

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite ended the week down due to uncertainty and trade war fears between US and China. The Dow Jones decreased by 119.07 points, or 0.29%, settling at 41,249.38. The S&P 500 dropped slightly by 0.07%, closing at 5,659.91. The Nasdaq Composite closed almost unchanged at 17,928.92.

Throughout the week, the S&P 500 slid about 0.5%, the Nasdaq dropped roughly 0.3%, and the Dow fell nearly 0.2%. The expectations around upcoming US-China trade talks and changes in tariff rates introduced volatility into the market. The tariff on China could potentially be reduced to 80%, as reported by President Trump, which is a de-escalation from the current 145%.

Big movers of the week included shares of Pinterest, which surged due to a positive quarterly revenue outlook, which motivated hopes of strong ad spending on the platform despite tariff risks. However, Expedia’s stock price slid because of missed revenue estimates due to decreased US demand. In addition, Berkshire Hathaway stock dropped about 5% after the approval of Greg Abel as Warren Buffett’s successor starting in 2026.

Tesla also experienced a dip of 1.8% in its shares as the company’s new car sales in Britain and Germany fell to their lowest in over two years. Goldman Sachs shares dipped 1.8%, pulling the Dow down.

While the trade negotiations continue and the trade war escalates, the market is expected to experience ongoing volatility until concrete agreements are reached.

The Dow Jones Industrial Average rose around 0.6%, or roughly 250 points, the S&P 500 climbed around 0.6%, and the Nasdaq Composite grew roughly 1% as the US stock market rallied in response to President Trump’s unveiling of a US-UK trade deal and indications of upcoming China discussions. Notably, the UK talks resulted in the potential for billions of dollars of increased market access for American exports. The US will reduce tariffs on auto and steel imports, but a 10% tariff on UK imports remains.

Unremarkable performances marked the following day as the Dow Jones grew 0.7%, or approximately 300 points, the S&P 500 ticked up 0.4%, and the Nasdaq Composite edged up around 0.3%. Alphabet’s 7% drop weighed on the Nasdaq, while the Dow was spurred by a 10% increase in Disney stock. The Federal Reserve’s decision to maintain interest rates also factored into these changes.

Despite this positive movement, talks between China and the US indicate that the S&P 500’s 13% rally since April 8 could be nearing its end. Other factors affecting the market next week will include inflation data with the April consumer price index set to release on Tuesday. Regarding earnings, major reports including Walmart and Alibaba are yet to release. Currently, S&P 500 earnings report beat estimates at an above-average rate even as analysts slash their expectations.

Lastly, the Dow Jones added 254.48 points, or 0.62%, settling at 41,368.45, the S&P 500 grew 0.58% to reach 5,663.94, and the Nasdaq Composite increased 1.07% to close at 17,928.14. Stocks increased after Trump announced a trade deal framework between the U.K. and the U.S. Significant contributors included Alphabet and Boeing shares, which increased nearly 2% and 3% respectively. However, concerns remain about a potential global trade war, which could increase prices and worsen inflation.