Wall Street Rallies as Inflation Cools and Crypto Market Tops $3.5 Trillion

Investor sentiment got a lift this week as markets rallied on easing trade tensions, cooler inflation data, and strong momentum from tech and crypto sectors. While global uncertainties remain, a series of bullish triggers reignited optimism across asset classes.

U.S. stocks snapped out of a multi-week slump, with the Nasdaq 100 climbing 1.6% and the S&P 500 logging its first green day since February. The surge was led by tech giants, especially chipmakers. Nvidia soared after securing a deal to ship 18,000 AI chips to Saudi Arabia, lifting peers like Broadcom and AMD. Meanwhile, the Dow lagged, dragged lower by an 18% plunge in UnitedHealth.

On the crypto front, Bitcoin remained firmly above $100,000, mirroring Wall Street’s rebound. Total crypto market capitalization surged past $3.5 trillion, its highest in over three months, as traders responded to signs of easing U.S.-China trade pressure and fading fears of prolonged stagflation.

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Inflation numbers added to the relief. April’s consumer data came in cooler than expected at 2.3% year-over-year, calming fears of an overheating economy. Bond yields dipped in response, and attention now turns to upcoming reports on producer prices and retail sales for a clearer economic read.

Elsewhere, eToro revived its shelved IPO, pricing shares at $52 as it prepares to list under the ticker ETOR. The timing suggests renewed investor appetite now that tariff concerns have momentarily eased following temporary agreements with both China and the UK.

With markets regaining some footing, all eyes are on whether this rebound is the start of a new leg higher—or just a brief reprieve.

Alexander Stefanov