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10.06.2025 09:50 AM
Stock Market as of May 10th: S&P 500 and NASDAQ

At the close of the previous regular session, U.S. stock indices showed strong gains. The S&P 500 rose by 0.09%, and the Nasdaq 100 jumped by 0.31%. The industrial Dow Jones did not change — up 0.00%.

Today, futures on stock indices fluctuated, losing their upward momentum due to a quick shift in risk sentiment ahead of the second day of trade negotiations between the U.S. and China. The regional stock index rose by 0.3% after jumping 0.7% earlier in the day. As it became known that talks would continue today, futures on European stock indices declined, as did futures on the S&P 500 and NASDAQ.

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Although no significant breakthroughs were announced after the first day of trade talks, U.S. officials expressed optimism regarding the negotiations. With key U.S. inflation data expected on Wednesday and the Federal Reserve entering a "blackout" period ahead of the June 18 interest rate decision, market participants are searching for any trigger that could push stocks further upward after the rebound from April lows.

Some investors are still hoping for at least some positive signals from the talks following media reports that China is taking the negotiations seriously but remains firm. According to China, the U.S. must remove all negative measures against it and objectively assess the progress achieved so far.

U.S. Commerce Secretary Howard Lutnick stated that the negotiations between Washington and Beijing were productive, while Treasury Secretary Scott Bessent called yesterday's meeting a good one.

Chinese stocks traded in Hong Kong remain in positive territory, and the recovery still appears to have a foundation, although much will depend on the outcomes of the negotiations, as both sides aim to ease tensions over restrictions on technology and rare earth element supplies.

According to a commentary in People's Daily, the flagship newspaper of the Communist Party, the trade discussions offer both sides another important opportunity to resolve differences through equal dialogue and negotiation. Tangible evidence that tariffs are affecting trade between the world's two largest economies appeared on Monday when data showed that Chinese shipments to the U.S. last month were the weakest in five years. Nevertheless, stock markets are rising on optimism that trade tensions will ease.

In Japan, Bank of Japan Governor Kazuo Ueda stated that the central bank is still some distance away from achieving its inflation target. Although Ueda also spoke about the potential for rate cuts to stimulate the economy, the mention of the need to support the economy likely gave the impression that the bank's next rate hike is further off than previously anticipated.

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Technical Picture for S&P 500

Today, the main task for buyers will be to break through the nearest resistance at $6013. This would support continued growth and open the way for a surge to the next level at $6030. Equally important for the bulls will be maintaining control over $6050, which would strengthen the buyers' position. If the index moves downward amid waning risk appetite, buyers must assert themselves near the $5999 level. A breakdown of this level would quickly push the instrument back to $5986 and open the path to $5975.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
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