By Robert Teitelman

Markets: The U.S. and China cut tariffs for 90 days: U.S. on China goods to 30%, China on U.S. goods to 10%. Stocks, Treasury yields, and the dollar rose; gold fell. The Nasdaq surged 4%, the S&P 500 more than 3%. April inflation fell to 2.3%, and investors unwound Federal Reserve rate-cut trades. Stocks fell after UnitedHealth Group suspended guidance, the CEO quit, an old one returned, and The Wall Street Journal reported it was under investigation for Medicare fraud. Oil slipped on upbeat comments from President Trump on Iran talks. On the week, the Dow industrials rose 3.4%; the S&P 500, 5.3%; and the Nasdaq Composite, 7.2%. After the Friday close, Moody's downgraded U.S. credit over rising debt, ending its last triple-A rating.

Companies: Trump headed to the Middle East, eager for deals. The trip began with Qatar offering him a used Boeing 747 as a new Air Force One and agreeing to buy 210 new Boeing jets; the Saudis and United Arab Emirates bought artificial-intelligence chips. Trump told drug companies to cut U.S. prices by as much as 80%. FedEx will pick up some Amazon.com deliveries that UPS shed. Samsung beat Apple to market with a thin smartphone. Coinbase Global revealed a hack just as it was set to join the S&P 500, replacing Discover Financial, which is being bought by Capital One.

Deals: Microsoft and OpenAI are rewriting their partnership. One goal: an initial public offering for OpenAI... Dick's Sporting Goods said it would buy Foot Locker for $2.4 billion.

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(END) Dow Jones Newswires

May 16, 2025 21:30 ET (01:30 GMT)

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