Stocks Tumble Amid U.S.-China trade Tensions
On Friday, the stock market saw a drop as U.S.-China trade tensions heated up. president Trump alleged that China broke their trade agreement,causing investor unease.
The Dow Jones fell over 120 points, while the S&P 500 decreased by 0.6%. The Nasdaq also faced a 0.4% decline. However, Nvidia’s gains provided some optimism.
Despite the market fall,April’s core Personal Consumption Expenditures (PCE) index,a key inflation metric,showed a 2.5% annual rise,meeting economists’ expectations.
This slight cooling in inflation is generally positive for risk assets. Yet,the ongoing tariff uncertainty overshadows this good news.
Trump’s accusation of China violating the trade deal adds to the tension. Treasury Secretary Bessent mentioned that U.S.-China trade talks are somewhat stalled.
Trump also noted that his initial trade deal with China had stabilized their situation, but complained about China not sticking to its end of the deal.
Additionally, the U.S. appeals court put a hold on the global tariffs, creating further complexity. Despite these challenges, U.S. stocks may still end May on a high note.
The Nasdaq is expected to climb 10% this month,with the S&P 500 set for a 6% increase,and the Dow looking to rise by 4%.
