A trader works on the floor at the New York Stock Exchange on May 12, 2025.<\/p>\n
Brendan McDermid | Reuters<\/p>\n
The S&P 500<\/a> rose Friday after posting a four-day rally in the prior session on the back of U.S. and China’s temporary tariff cuts and encouraging inflation reports.<\/p>\n The broad market index traded 0.1% higher, while the Nasdaq Composite<\/a> advanced 0.2%. The Dow Jones Industrial Average<\/a> slipped 74 points, or 0.2%.<\/p>\n Stocks have made a strong comeback since U.S. and Chinese officials earlier this week agreed on a 90-day truce in their tariff measures, which eased investors’ fears of escalating global trade tensions and rising risk to the economy.<\/p>\n Week to date, the S&P 500 is up 4.5%, and the Dow has gained 2.6%. The Nasdaq Composite has jumped more than 6% this week. Both the S&P 500 and Dow closed higher on Thursday, while the Nasdaq fell slightly.<\/p>\n Friday could see an uptick in volatility on Wall Street due to a large amount of options contracts<\/a> that are set to expire. Goldman Sachs estimated that more than $2.8 trillion of notional options exposure will expire on Friday, the biggest such number on record for a May trading day.<\/p>\n “We believe we are entering a new market regime where volatility will be higher and the mega-cap tech stocks will not simply dominate market performance,” said Scott Welch, chief investment officer at Certuity. “We are not bearish on them, just believe diversification is a smart move right now.”<\/p>\n Stocks got a boost Thursday from a soft inflation report, showing that wholesale prices declined 0.5% in April from the prior month. The result follows the release of April’s consumer price index<\/a> earlier this week, which grew at a 12-month rate of 2.3%, its lowest since February 2021.<\/p>\n