Morning Bid: 'Magnificent 7' ride back into town

Amanda Cooper

Wed, May 14, 2025, 3:36 AM 4 min read

By Amanda Cooper

LONDON (Reuters) - What matters successful U.S. and planetary markets contiguous by Amanda Cooper.

The banal marketplace is simply a small connected the weaker broadside today, with U.S. futures mostly steady, arsenic investors instrumentality a breather from this week's blistering rally. Global commercialized tensions mightiness yet beryllium easing, wealth is flowing backmost into the glittering AI assemblage and the imaginable of perchance bullish Federal Reserve complaint cuts is backmost connected the table.

Mike is retired today, but cheque retired his latest file to find retired wherefore U.S. fund anxiousness could rapidly regenerate the commercialized warfare tensions.

Today's Market Minute

* President Donald Trump kicked disconnected his travel to the Gulf connected Tuesday with a astonishment announcement that the United States volition assistance long-standing sanctions connected Syria, and a $600 cardinal committedness from Saudi Arabia to put successful the U.S.

* Tesla plans to commencement shipping components from China to the U.S. for the accumulation of Cybercab and Semi trucks from the extremity of this month, aft the U.S. and China reached a truce implicit tariffs.

* How volition the commercialized warfare de-escalation interaction China's mammoth manufacturing assemblage and the country's vigor needs? Read Reuters’ columnist Gavin Maguire’s latest portion to larn which cardinal metrics you should beryllium tracking.

* The fog of uncertainty created by Trump's commercialized warfare whitethorn beryllium lifting, but it’s leaving investors with a lingering question: what was the constituent of each that chaos astir what the president termed "Liberation Day"? Check retired Jamie McGeever’s investigation successful his latest column.

* The broad commercialized woody announced by the U.S. and UK governments past week was a damp squib, but that shouldn’t interest Downing Street. The bigger prize is person collaboration with the European Union, and that could accelerate aft the UK-EU acme adjacent week. Find retired much successful the file from Panmure Capital’s Joachim Klement.

The Magnificent 7 Ride Back into Town

This week's banal marketplace rally could good spell down successful Wall Street past arsenic 1 of the astir epic connected record. The S&P 500 is up by much than 20% successful the 36 days since it deed a 15-month debased connected April 7. The scale took conscionable 16 days to deed the 20%-recovery-from-the-lows people successful 2020 and 18 days successful 2009. The quality this clip astir is determination is nary tidal question of monetary oregon fiscal stimulus helping to grease the wheels of the rally. The bulls aren't conscionable back, they're successful the driving spot and the Magnificent 7 - Apple, Amazon, Microsoft, Nvidia, Meta and Tesla - are the engine.

Investors person an affinity for shiny things. This week's cocktail of market-friendly catalysts, including the 90-day halt to the U.S./China commercialized war, a benign speechmaking of ostentation and a raft of headline-grabbing concern deals from the Middle East, wherever Trump happens to beryllium visiting, person acceptable the signifier for Mag 7 mania erstwhile again.