Tech giants lead the counterattack! With inflation cooling and tariffs easing, the S&P 500 and Nasdaq staged a "V-shaped reversal" reclaiming lost ground in 2025

According to Zhitong Finance APP, under the dual benefits of a pause in the global trade war and easing inflation pressures, the rebound wave led by technology giants has driven U.S. stocks to turn positive for the year.

After several weeks of consecutive gains, the S&P 500 index rose 0.7% on Tuesday, and the Nasdaq 100 index surged 1.6%, both achieving a positive cumulative increase for the year 2025. The "seven giants" group, led by NVIDIA (NVDA.US), Apple (AAPL.US), and Meta (META.US), soared 8% this week, marking the largest two-day gain since early April, pushing the two major indices to be just 4.2% and 4.4% away from their historical closing highs on February 19.

The U.S. April CPI data released before the market on Tuesday, which was lower than expected, ignited the upward momentum. Swap contracts indicate that the market has fully priced in a rate cut by the Federal Reserve in September, with expectations of at least two rate cuts by 2025. JP Morgan subsequently withdrew its recession warning and raised its U.S. economic growth forecast.

Dan Eye, head of Fort Pitt Capital Group, stated: "The improvement in inflation data is very helpful. Since tariffs are no longer so harsh, the resistance faced by the Federal Reserve has also decreased. Many investors, especially those using systematic strategies, had previously deviated significantly from the market, and now they need to catch up, especially in the technology sector."

This rise continued the strong performance from Monday—driven by optimistic sentiment surrounding the U.S.-China trade truce, the S&P 500 index had previously surged 3.3% in a single day. The index has now recovered the losses incurred since President Trump announced comprehensive tariff increases on April 2. After the benchmark stock index retreated nearly 20% from its historical high last month, the market's expectations for the Trump administration to ease tariffs before triggering a global economic recession have continued to drive the rebound.

The chip sector performed well, with NVIDIA CEO Jensen Huang announcing a partnership with AMD (AMD.US) to supply chips for the data center project of Saudi artificial intelligence company Humain, leading the Philadelphia Semiconductor Index to jump 3%.

However, analysts caution that trade negotiations between the world's two largest economies still hold uncertainties, as most countries have yet to reach tariff reduction agreements.

UnitedHealth (UNH.US) experienced a sudden personnel shake-up, with board chairman Stephen Hemsley replacing Andrew Witty as CEO, causing the company's stock price to plummet 18%, dragging the healthcare sector down and leading the S&P 500 index. Due to medical expenses exceeding expectations, UnitedHealth suspended its full-year earnings guidance, which also negatively impacted the stock prices of peers such as Elevance Health (ELV.US), CVS Health (CVS.US), and Humana (HUM.US).

In other stocks, Hertz Global Holdings (HTZ.US) faced its largest single-day drop in over a year, plummeting 17% due to first-quarter losses that exceeded expectations; 3D Systems (DDD.US), a 3D printer manufacturer, saw its stock price crash by 27% after the company reported first-quarter product revenue below analysts' average expectations.

Meanwhile, the tax proposal released by House Republicans was more lenient than expected for the solar industry, causing First Solar (FSLR.US) stock to soar 23%, marking its best performance in two years, while Sunrun (RUN.US) followed with a 9% increase. However, a proposal to eliminate tax credits for hydrogen production led to a 10% drop in Plug Power (PLUG.US)