Axios Closer

May 12, 2025
🌎 Another day, another huge shift in the global trade landscape.
Today's newsletter is 688 words, a 2.5-minute read.
🔔 The dashboard: The S&P 500 closed up 3.3%.
🔥 Today's stock spotlight: NRG Energy (+26.2%). The company announced it's acquiring a natural-gas power portfolio from LS Power for $12 billion, effectively doubling its generation capacity.
1 big thing: A temporary truce
Call it a sigh-of-relief rally.
- Investors cheered the U.S.-China trade deal today, sending stocks soaring after the world's two largest economies agreed to slash tariffs for 90 days as they continue talks.
State of play: The S&P 500 — which jumped 3.3% today — has now gained nearly 21% from its low point in April, when it dipped into correction territory at the nadir of the market's fear of the impacts of a trade war.
- The Dow today soared 1,160 points, or 2.8%, while the tech-heavy Nasdaq surged 4.35%.
- The VIX index — a gauge of market volatility — dropped below 20 for the first time since March 27.
- And Treasury yields rose as investors felt less need to play it safe.
What they're saying: "Peak pessimism is firmly in the rear-view mirror," says Seema Shah, chief global strategist at Principal Asset Management.
Yes, but: The U.S.-China deal isn't permanent, the Trump administration continues to saber-rattle about trade with other nations, and tariffs remain elevated compared to historic levels.
- "We believe one way to describe the current moment is that financial markets and the economy have entered the eye of the storm," Wells Fargo head of global investment strategy Paul Christopher wrote today, noting that the effects of the trade war haven't fully reverberated throughout the world.
The bottom line: The worst might be over. Emphasis on might.
2. "Better than feared"
President Trump signed an executive order this morning asking drug manufacturers to sell products to U.S. patients at the lower "most-favored-nation price."
- Should drug companies not play along, the order pledged, the administration will take "additional aggressive action," Axios' Rebecca Falconer and Adriel Bettelheim report.
The impact: Shares in major drug companies actually finished the day in the green, bouncing back from losses this morning after the president's social media post previewing the order last night.
- Market "reaction is positive, with the interpretation being 'better than feared,'" Jefferies analyst Michael Yee wrote in a note today, per Bloomberg.
3. Stop-start vehicle tech under fire
EPA Administrator Lee Zeldin blasted vehicle stop-start systems in a post today on X, signaling that the agency would take action against it.
- "Start/stop technology: where your car dies at every red light so companies get a climate participation trophy," Zeldin said. "EPA approved it, and everyone hates it, so we're fixing it."
Context: The technology — which automatically turns a vehicle's engine off when it's stopped — has become a common feature in new vehicles as a way to save a few bucks on gas and reduce emissions.
- The EPA doesn't mandate the feature, but it provides extra fuel economy credits to automakers that adopt it.
💭 Nathan's thought bubble: It can generally be turned off at the press of a button.
4. Monday catch-up
🛍️ The "de minimis" exemption remains scrapped. Small packages from China are still subject to tariffs of 120%, a White House official confirmed today — a major blow for U.S. consumers seeking cheap goods from e-commerce retailers like Shein and Temu. (Axios)
📱Apple is weighing plans to raise iPhone prices. But the company is not expected to publicly link any hikes to increased tariffs. (WSJ)
🔋 Chinese EV battery giant CATL is fielding investor interest on what would be the largest public offering of the year worldwide. It would list in Hong Kong and not allow U.S. onshore investors. (Bloomberg)
🏭 Mercedes-Benz is expanding its U.S. manufacturing footprint, with plans to add one of its most popular models, the GLC compact crossover utility vehicle, to its Alabama plant by 2027. (Axios)
5. 🏀 Jordan to take to the air
His Airness will soon be on the air in a new capacity.
- Michael Jordan is joining NBC Sports as a "special contributor" for the return of NBA coverage.
State of play: The NBA returns to NBC this fall after Comcast's NBCUniversal signed an 11-year agreement for the broadcast rights to NBA and WNBA games.
- "The NBA on NBC was a meaningful part of my career, and I'm excited about being a special contributor to the project," Jordan said in a statement.
💭 Nathan's thought bubble: I consider Jordan the best player of all time, but it's hard to envision him scratching his competitive itch as an analyst.
💻 On this day in history: Konrad Zuse delivered the world's first first working fully automatic programmable digital computer, the Z3, in 1941. The original didn't survive, though — it was destroyed in an Allied bombing on Berlin two years later.
Today's newsletter was edited by Pete Gannon and copy edited by Carlos Cunha.
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