S&P 500 Index Erases Year-to-Date Losses as U.S. Stock Rally Continues

On May 13, U.S. stocks rose on Tuesday, with the S&P 500 erasing its year-to-date losses as lower-than-expected inflation data fueled the stock market rally. The stock market's movement continued the rebound momentum of the past month, pushing the S&P 500 up by 0.1% for the year. Before Trump's announcement of "Liberation Day" tariffs on April 2, escalating trade tensions had already hurt U.S. stocks, leading investors to sell off American assets and lower their economic growth expectations, causing the index to plummet by as much as 15%. However, after Trump paused the imposition of reciprocal tariffs on most countries on April 9, traders flocked back to the stock market. Shep Perkins, an equity fund manager at Putnam Investments, said, "The main trend of the past few months was instantly reversed. The U.S.-China trade agreement is a huge positive surprise."