Breakfast News: S&P 500 Back To Positive YTD

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1. S&P 500 Erases 2025 Losses

The S&P 500 is back into positive territory in 2025, just squeaking above the breakeven level by yesterday's close. The index has risen 18% since closing at 4,983 points on April 8, six days after President Trump's initial tariff plan sent markets into a tailspin. The Nasdaq has bounced back 25% in the same period.

• Nasdaq and S&P 500 futures flat this morning: The latest gains were driven mainly by tech stocks, while tariff fears still weigh on company outlooks. American Eagle (AEO 5.59%), due to report on June 4, is among the latest to withdraw its guidance, citing macro uncertainty.
• 3.8% inflation by June?: April inflation figures showed a fall in consumer prices, but Moody's Analytics expects a new round of price rises as tariff effects start to kick in. Goldman Sachs predicts slightly lower 2025 peak inflation of 3.6%.

2. AMD and Nvidia Gain on Export Deals

Stock Advisor recommendation Advanced Micro Devices (AMD 4.06%) has won a $10 billion deal with Saudi Arabia's new artificial intelligence enterprise, Humain. The plan should see AI capacity of 500 megawatts installed in the country over the next five years. Humain had previously announced a $5 billion investment plan with Amazon (AMZN 1.34%) Web Services.

• "A globally significant AI platform": CEO Lisa Su spoke of "performance, openness and reach at unprecedented levels," as AMD will contribute CPUs, GPUs, and software to the project.
• 18,000 Nvidia chips to go: As President Trump eased AI chip exports to the Middle East, Nvidia (NVDA 5.71%) said it's set to deliver an initial shipment of new-generation Blackwell chips to the Humain project. AMD stock closed yesterday up 9.4% on the week, with Nvidia 11.4% higher over the two days.

3. Autos in Focus

The effect of tariffs on the auto industry is starting to be felt, new car prices reveal. An April update for Cox Automotive vehicle price data shows a 2.5% rise in average new car prices. It follows the new 25% tariff on imported vehicles, though tariffs on materials and components are expected to push U.S.-made car prices up. Demand surged in the first three months, as buyers rushed to beat the rises.

• "It will take some time for safety trials to convince regulators": Baidu (BIDU -0.01%) is preparing to trial its Apollo Go driverless taxi service in Switzerland, The Wall Street Journal reports, as Morningstar's Kai Wang says safety will be a key concern. The technology giant has so far not approached the U.S. market, where Tesla (TSLA 5.06%) plans to launch its robotaxi in Austin, Texas, in June.
• Auto Manufacturers Index up 47% since April 8: The tariff effect might only be fleeting after the latest U.S.-China talks, with Ford (F 0.33%) now back above its April 2 price when the brief trade war started. Tesla is also pulling back up, but remains 17% down year to date.

4. Next Up: DAVA, CSCO Earnings

Endava (DAVA -0.37%) is due to report its third quarter before the market opens. The technology service provider saw a 6.6% rise in Q2 revenue, but that fell short of analyst expectations. While a share repurchase launch showed management confidence, the company reported a 4% drop in adjusted profit before tax as its profit margin dipped from 12.4% to 11.2%

• What to watch: For Q3, eyes will be on profitability as the company integrates technologies like AI. Analysts expect a 14% revenue rise from Endava, to £199 million for the latest quarter.
• Beating the S&P 500 by 21% since September '24 Hidden Gems rec: Cisco Systems (CSCO 0.19%) is due to post Q3 earnings after the closing bell. The network giant narrowly beat revenue estimates in Q2 with a 9.4% rise year over year, and a further 10.7% is expected in the latest quarter.

5. Your Take

Year to date, would you say you've: Bought more stock than you've sold; Sold more stock than you've bought; Roughly an even split; or Mostly sat on your hands? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!