Chart of the day - US500 (14.05.2025)

U.S. indices have almost fully recovered the losses triggered by the onset of the trade war initiated by Donald Trump. Even the recent progress in trade negotiations—despite the lack of finalized agreements—was enough to lift investor sentiment and boost stock prices. Yesterday, an additional catalyst came from the historic deal between the U.S. and Saudi Arabia, involving multibillion-dollar investments in the artificial intelligence sector and technology purchases from Nvidia and AMD. This news significantly improved market sentiment and contributed to a sharp rally in the tech sector. Let’s take a look at how selected US500 companies and various sectors are performing in this context.

The strongest rebound is, unsurprisingly, among the so-called “Magnificent 7” — Nvidia, Meta, Alphabet, Amazon, Apple, Microsoft, and Tesla. Following a deep prior correction, these companies are now driving the entire US500 index higher.

It’s also worth noting that the rest of the US500 companies are showing signs of recovery. The US500 index, excluding the aforementioned seven, is trading near all-time highs (ATH), although the pace of gains in this group is notably slower — as clearly shown in the charts.

From a technical perspective, the US500 has broken through key resistance levels and returned to a consolidation zone near record highs. The key levels now are 5900 and 6000 points. For the rally to continue on a fundamental basis, the market needs further catalysts — such as yesterday’s deal with Saudi Arabia. Trump has hinted at potential similar agreements with other countries, such as the United Arab Emirates, though for now, that remains speculative.