Wall Street’s Wild Week: S&P 500 Soars, Coinbase Steals the Show!

S&P 500 jumps 5.3% as Coinbase joins index, fueling crypto hype! Unpack the market’s big week.

May 18, 2025 - 01:40
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Wall Street’s Wild Week: S&P 500 Soars, Coinbase Steals the Show!
Wall Street’s Wild Week: S&P 500 Soars, Coinbase Steals the Show!
The U.S. stock market roared last week, with the S&P 500 climbing 0.7% on May 16 to cap a 5.3% weekly gain, its strongest since early March. The Dow Jones Industrial Average surged 331 points, or 0.7%, while the Nasdaq added 0.5%. A key driver? Coinbase Global Inc., the largest U.S. crypto exchange, rocketed 9% after news of its S&P 500 inclusion on May 19, marking a historic first for a crypto firm. This followed a 24% rally earlier in the week, fueled by Bitcoin topping $104,000.
What Sparked the Rally?
A U.S.-China tariff truce eased trade war fears, boosting investor confidence. Despite mixed signals—retail sales slowed in April, but inflation eased to a four-year low—stocks like Nvidia (up 16%) and Coinbase thrived. Coinbase’s S&P 500 entry, replacing Discover Financial Services, signals crypto’s growing mainstream acceptance. However, its high price-to-earnings ratio and a 10% Q1 revenue drop raise caution flags.
Why It Matters
For new investors, this week shows the market’s volatility and opportunity. Coinbase’s rise highlights crypto’s integration into traditional finance, but its reliance on volatile crypto markets means risks remain. The S&P 500’s resilience, despite consumer spending concerns, suggests economic optimism, though inflation and tariffs could still shake things up.
What’s Next?
With Coinbase in the S&P 500, expect more eyes on crypto stocks. Investors should research thoroughly and diversify to navigate potential bumps. The market’s trajectory hinges on upcoming trade talks and inflation data.
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NOTICE: The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.