US Stock Market Close: S&P 500 Recovers All Losses for the Year, Nvidia Surges, Leading the Return of AI Concepts

On Tuesday (May 13), the three major US stock indices had mixed changes, with the Dow Jones Industrial Average (DJIA) declining while the S&P 500 recouped all its losses for the year.

By the close, the S&P 500 rose 0.72% to close at 5,886.55, its highest level since early March. Its year-to-date (YTD) change turned positive, now up 0.08%, after having fallen more than 17% earlier this year.

The Nasdaq Composite Index rose 1.61% to close at 19,010.08, its first close above 19,000 since February 26.

The DJIA fell 0.64% to close at 42,140.43, dragged down by a 17.79% plunge in UnitedHealth Group, one of its components. Before the market opened, UnitedHealth announced it would suspend its 2025 outlook, and its CEO, Andrew Witty, stepped down immediately for personal reasons.

The day before, high-level economic and trade talks between China and the US reached important consensus and made substantive progress, directly reflected in a significant reduction in bilateral tariff levels. This development was highly praised by the international community, and financial markets also responded positively, with all three major US stock indices rising collectively on Monday.

On Tuesday, a meeting between US President Trump and Saudi Crown Prince and Prime Minister Mohammed bin Salman further boosted the stock market. Nvidia CEO Jensen Huang announced at the Saudi-US Investment Forum thatNvidia would sell over 18,000 artificial intelligence (AI) chips to Saudi company Humain.

After that, Trump was also set to head to Qatar and the UAE. During the trading day, news emerged that the Trump administration was considering an agreement that would allow the UAE to import over 1 million advanced Nvidia chips, far exceeding the restrictions set by the Biden administration's AI chip export rules.

Influenced by these developments, Nvidia surged 5.63% in a single day, closing at its highest level since February 27. Shares of other chipmakers also strengthened, with Broadcom rising 4.89% and AMD up 4.01%. The Philadelphia Semiconductor Index rose 3.15%, narrowing its YTD decline to less than 1%.

In addition to the positive news on chips, the latest US CPI data also boosted the market. Data released before the market opened by the US Bureau of Labor Statistics showed that the CPI rose 2.3% YoY in April, and the core index rose 2.8% YoY, both the lowest since early 2021.

During the trading day, Trump posted on Truth Social, saying, "There is no more inflation! Prices for gasoline, energy, groceries, and almost everything else are falling!!! The US Fed must cut interest rates. What's going on with 'Mr. Delay' Powell?"

Jamie Cox, managing partner at Harris Financial Group, said, "Trade news, combined with Saudi Arabia's massive chip deal and the prospect of falling inflation, could prompt the US Fed to advance the timing of an interest rate cut. Add to that the substantive details of tax cuts, and market risk sentiment is heating up across the board."

Performance of Popular Stocks

Most large-cap tech stocks rose, with (ranked by market capitalization) Microsoft down 0.03%, Apple up 1.02%, Nvidia up 5.63%, Amazon up 1.31%, Google C up 0.82%, Meta up 2.6%, and Broadcom up 4.89%. Tesla surged 4.93%, closing at its highest level since February 24.

The solar panel sector and cryptocurrency-related stocks led the gains. Coinbase soared 23.97% after being added to the S&P 500 Index.

Among Chinese ADRs, the Nasdaq Golden Dragon China Index fell 0.07%. Popular Chinese ADRs had mixed performances, with Amer Sports up 3.86%, JD.com up 3.33%, Pinduoduo up 2.64%, and Tencent Music up 2.51%.

Chagee fell 10.88%, GDS Holdings dropped 6.14%, TAL Education Group declined 2.34%, NIO fell 1.9%, XPeng Motors dropped 1.66%, Li Auto declined 1.48%, New Oriental Education & Technology Group fell 0.94%, Alibaba Group Holding fell 0.68%, and Baidu fell 0.2%.

Company News

[US Considering Allowing UAE to Purchase Over 1 Million Advanced Nvidia Chips]

According to sources familiar with the matter, the Trump administration is considering a deal that would allow the UAE to import over 1 million advanced Nvidia chips, far exceeding the limits set by AI chip regulations during the Biden era. The sources said the agreement is still under negotiation and could change. From now until 2027, the UAE will be allowed to import 500,000 of the most advanced chips on the market each year. One-fifth of these will be reserved for Abu Dhabi-based AI company G42, with the remainder going to US companies building data centers in the UAE.

[OpenAI Considering Building Data Center in UAE, Potential Announcement During Trump's Middle East Trip]

OpenAI is considering building a new data center in the UAE, a move that could significantly expand its presence in the Middle East. The agreement has not yet been finalised and could still change, with an announcement potentially coming as early as this week during US President Trump's visit to the Middle East. Trump is scheduled to visit the UAE on Thursday. OpenAI CEO Sam Altman is also currently visiting the region as part of a collective trip by tech leaders.

According to sources familiar with the matter, it is currently unclear how much data center capacity OpenAI plans to build in the UAE. The success or failure of this project largely depends on whether OpenAI can successfully import Nvidia's cutting-edge chips for developing and training AI models. Since 2023, the US has been restricting the sale of such chips to the UAE. However, according to media reports, Trump administration officials are on the verge of reaching an agreement to ease access for this Gulf country.

[AMD and Saudi AI firm Humain reach a strategic cooperation worth $10 billion]

AMD has reached a strategic cooperation worth $10 billion with Saudi AI firm Humain to advance global AI. Under the agreement, the two parties will invest up to $10 billion to deploy 500 megawatts (MW) of AI computing power over the next five years.

[Tesla's Robotaxi safety under US regulatory investigation, with FSD system in focus]

US regulators are intensifying their scrutiny of Tesla's Robotaxi plan. The National Highway Traffic Safety Administration (NHTSA) has sent a list of questions to the company as part of its ongoing investigation into Tesla's Full Self-Driving (FSD) software. The agency wants to understand how the FSD system performs in adverse conditions such as fog, rain, or bright sunlight, and has inquired about Tesla's plans to safely test Robotaxi on public roads. This investigation began in October 2024, following four accidents involving the FSD system in low-visibility environments. Currently, Tesla's FSD still requires drivers to remain alert and keep their hands on the wheel. However, CEO Elon Musk has stated that the upcoming Robotaxi version will achieve fully unsupervised driving. Regulators hope to confirm whether the new system is the same as the existing road version, and have also inquired about the number of vehicles, areas of use, and Tesla's safety verification methods.

[GM and LG Energy Solution collaborate to develop new-type LMR prismatic batteries]

General Motors (GM) has announced that it, together with LG Energy Solution, will commercialize lithium-rich manganese-based (LMR) prismatic battery cells for future GM electric trucks and full-size SUVs through a new battery technology breakthrough. GM aims to become the first automaker to deploy LMR batteries in EVs. Ultium Cells, a joint venture between GM and LG Energy Solution, plans to commence commercial production of LMR prismatic battery cells in the US by 2028, with pilot production expected to take place at LG Energy Solution's factory by the end of 2027. According to reports, battery engineers from GM and LG Energy Solution have developed a new-type LMR prismatic battery cell that achieves a 33% increase in energy density compared to the best-performing lithium iron phosphate (LFP) battery cells, while maintaining similar costs.