U.S.Stocks Close Mixed in Volatile May
U.S. stocks wrapped up May with a mixed performance on Friday. The S&P 500 closed nearly flat,capping off a 6% monthly gain,its best may as 1990. The Dow Jones gained 0.13%, while the tech-heavy Nasdaq saw a slight dip of 0.3%.Despite early declines, the market showed resilience, with the Nasdaq soaring nearly 10% for the month.
The S&P 500 finished the day unchanged but enjoyed a robust 6% monthly rise. The Dow Jones edged up 0.13%, and the Nasdaq fell 0.3%,recovering from a 1.6% drop earlier. This month, the tech-heavy Nasdaq surged nearly 10% as technology shares continued to drive momentum. The Dow added 4%. Friday’s subdued finish followed reports of expanding U.S. tech restrictions on China and renewed trade tensions.
The Trump administration plans to tighten export rules targeting subsidiaries of firms already on the Entity List, Bloomberg reported. That news came hours after former President Trump accused china of violating its existing trade deal on social media.
Treasury Secretary Scott Bessent said talks with China are “stalled” and suggested a Trump-Xi call is needed to advance negotiations.
Simultaneously occurring, legal uncertainty surrounding tariffs added to investor anxiety. A U.S. appeals court temporarily allowed Trump-era tariffs to remain in place, reversing a trade court’s earlier decision.
The administration is also weighing a 15% duty for up to 150 days under the Trade Act of 1974.
Despite the geopolitical and legal headwinds, investors found optimism in cooling inflation. The Fed’s preferred inflation gauge—the core Personal Consumption Expenditures index—rose in line with forecasts in April, helping temper fears of further rate hikes.
Health care was the only S&P 500 sector to post a monthly loss, down nearly 6%. All other major sectors finished May in the green, buoyed by easing inflation and strength in tech.
Markets head into june with gains intact, but trade policy remains a looming risk.
