On May 5, the leaders of China and the United States engaged in a phone call, which influenced the US stock market to exhibit volatility. Initially, stocks opened higher and then fell, but around 11 a.m., after President Trump confirmed a "very good conversation" with President Xi Jinping, the market began to rise again. The S&P 500 and Dow Jones Industrial Average saw increases of 0.3% to 0.4%, while the Nasdaq and Philadelphia Semiconductor Index also surged significantly.

As of 11:40 a.m. Eastern Time, the S&P 500 was up by 25.69 points (0.43%), the Dow Jones increased by 138.27 points (0.33%), the Nasdaq rose by 136.82 points (0.7%), and the Philadelphia Semiconductor Index gained 69.16 points (1.37%). Among individual stocks, Nvidia rose by 0.87%, Apple by 0.69%, Google by 1.15%, Meta by 0.35%, and TSMC ADR by 1.54%. However, Tesla saw a decline of 3.29%.

According to CNBC, both the US and China agreed to temporarily lower tariffs in May, leading to a substantial rise in the market that month, as investors believed that the worst of the tariff storm was over. However, tensions between the two countries have escalated recently, causing further market fluctuations. Following the initial release of information regarding the Trump-Xi conversation, there was a slight uptick in the stock market.

Jay Hatfield, CEO of Infrastructure Capital Advisors, stated that while the talks between the US and China are encouraging, he believes that a trade deal between the two countries will be achieved much later than those with India, Japan, and other nations, making a quick resolution unlikely. However, the market currently maintains a moderately bullish outlook.

Despite the decrease on Thursday, the major three U.S. indices have shown gains this week. The S&P 500 is up nearly 1%, while the Dow is up 0.1%. The tech-heavy Nasdaq index has risen 1.7% so far this week.