On Thursday, May 29, 2025, U.S. stock markets experienced a significant rally, primarily driven by the robust performance of technology stocks, particularly Nvidia Corp. This surge occurred despite recent economic data indicating a contraction in the U.S. economy, prompting investors to anticipate potential interest rate cuts by the Federal Reserve.
The S&P 500 saw broad gains across various sectors, increasing by approximately 1%. Nvidia's stock notably jumped by 5% after the company reassured investors regarding its growth prospects in artificial intelligence computing, notwithstanding concerns about a possible slowdown in China. Concurrently, yields on two-year Treasury notes decreased, and the dollar weakened against major currencies.
Recent data from the Bureau of Economic Analysis revealed a decrease in the gross domestic product at an annualized rate of 0.2% in the first quarter. While consumer spending rose by 1.2%, this figure was a downward revision from previous estimates. By the close of trading, the S&P 500 had increased by 0.8%, the Nasdaq 100 by 1.3%, and the Dow Jones Industrial Average by 0.2%.