U.S.Stocks Conclude Mixed May amid Trade Tensions adn Tariff Uncertainty
The U.S. stock market wrapped up Friday on a mixed note,recovering from initial losses to close a volatile yet strong May. The S&P 500 finished almost flat but enjoyed its best May since 1990 with a 6% gain. The Dow climbed 0.13% on the day, while the Nasdaq fell slightly by 0.3%, after plummeting over 1.6% earlier.
Over the month, the tech-heavy Nasdaq skyrocketed nearly 10%, thanks to the solid performance of tech stocks. The Dow added 4%. Though, Friday’s lukewarm performance followed news of expanding U.S. tech restrictions on China and renewed trade disputes.
The Trump administration aims to tighten export rules for subsidiaries of sanctioned Chinese firms, Bloomberg reported. This comes after former President Trump accused China of violating a trade deal on social media. Treasury Secretary Scott bessent said negotiations with China are “stalled” and suggested a call between Trump and Xi could help.
- Tariff rulings add legal uncertainty.
- Geopolitical tensions remain a significant risk.
Meanwhile, a U.S. appeals court allowed Trump-era tariffs to stay, reversing a trade court’s decision.The administration is also considering a 15% duty for up to 150 days under the Trade Act of 1974.
Despite these challenges, investors found hope in cooling inflation. The core PCE index, the Fed’s preferred inflation gauge, increased in line with expectations in April, easing concerns about further rate hikes. The S&P 500’s health care sector was the only one to post a monthly loss, down nearly 6%. The rest of the sectors finished May positively, driven by easing inflation and tech strength.
As June begins, markets carry forward May’s gains, but trade policy remains an uncertain factor.
