The S&P 500 closed at 5,631.28 on May 7, 2025, marking a 0.43% increase, as investors responded positively to the Federal Reserve’s decision to maintain interest rates and the announcement of upcoming U.S.-China trade talks.
Federal Reserve Maintains Interest Rates Amid Economic Uncertainty
The Federal Reserve opted to keep the federal funds rate steady at 4.25%–4.50%, citing rising risks to the economy, including potential impacts from ongoing trade policies and global uncertainties. 
U.S.-China Trade Talks Scheduled in Geneva
In a significant development, U.S. and Chinese officials have agreed to hold trade discussions in Geneva, signaling a potential thaw in relations amid ongoing tariff disputes. 
Tech Sector Earnings Show Mixed Signals
Earnings estimates for the tech sector have been adjusted, with expectations for Q2 2025 S&P 500 earnings growth at +6.4% year-over-year, driven by a 3.9% increase in revenues. 
Commodity Prices React to Market Dynamics
Gold prices experienced a decline, with COMEX gold trading at $3,330.50 per ounce, down 1.51%, influenced by a stronger U.S. dollar and easing geopolitical tensions. 
Oil prices showed modest gains, with Brent crude at $61.36 per barrel and WTI crude at $58.38, as markets assessed supply dynamics and demand forecasts. 
Investor Outlook
As markets navigate a complex interplay of economic indicators, policy decisions, and geopolitical events, investors remain vigilant. The coming weeks will be critical in assessing the resilience of global markets and the potential for sustained recovery or further volatility.
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