Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 14, 2025. REUTERS/Brendan McDermid/ File Photo Purchase Licensing Rights, opens new tab
Summary
S&P 500 erases losses for year after US-China trade truce
P/E ratio on S&P 500 reaches two-month high
2025 corporate profit growth estimates trend lower since January
NEW YORK, May 16 (Reuters) - Market momentum following the U.S.-China trade truce has put stocks back in sight of record highs but wariness about the economic fallout from remaining tariffs and higher equity valuations could slow gains in the near term.
The S&P 500 (.SPX), opens new tab has soared 18% since hitting its low closing point for the year on April 8, erasing the benchmark index's losses for 2025 and putting it roughly 4% from its all-time peak reached in February.
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