4:12pm: May ends strong
Markets ended the day on a mixed note Friday, as investors weighed renewed U.S.-China trade tensions against encouraging signs of cooling inflation.
The Dow Jones Industrial Average edged up 54 points, or 0.1%, to 42,270, while the S&P 500 closed flat at 5,912. The Nasdaq Composite fell 62 points, or 0.3%, to 19,114 as tech stocks lagged. The Russell 2000 slipped 4 points, or 0.2%, to 2,071.
Despite trade-related jitters, all three major indices ended both the week and the month in the green. It was the best month for the S&P 500 since November 2023.
Investors reacted to a Bloomberg report that the Trump administration plans to tighten tech restrictions on China, targeting subsidiaries of already-sanctioned firms. The proposed rule would require U.S. government licenses for deals involving majority-owned affiliates of blacklisted companies.
The news followed Trump’s Truth Social post accusing China of violating its trade deal, just weeks after a tentative tariff truce. Treasury Secretary Scott Bessent said trade talks are “a bit stalled,” and a call between Trump and Xi Jinping may be needed to restart progress.
On the economic front, the core Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, rose in line with expectations for April, reinforcing the view that inflation is continuing to cool.
While the day was uneven, investors closed out May on a high note, with momentum heading into June.
3:31pm: Proactive headlines
Charbone Hydrogen Corporation secured all necessary permits for construction of its flagship green hydrogen facility in Sorel-Tracy during Q1 2025.
Reconnaissance Energy Africa Ltd (ReconAfrica) is preparing to drill its largest target, Prospect I in Namibia, and has expanded operations into Angola via a new joint venture.
Pensana PLC raised £2 million in new funding, including £1 million from M&G Investment Management, with shares priced at 35p.
Petro Matad Limited shares dropped 30% after revealing delays in oil payments due to pending tax-related confirmations from Mongolian authorities.
Chill Brands Group PLC expects trading in its shares to resume soon and plans to publish full-year and interim financial results in June.
Tamboran Resources Corporation raised US$38.7 million in the first tranche of its PIPE offering to support drilling at the Shenandoah South Pilot Project.
Prescient Therapeutics Ltd dosed the first patient in its Phase 2A trial of PTX-100 for cutaneous T-cell lymphoma, following successful Phase 1B results.
Recce Pharmaceuticals Ltd secured a Chinese patent for its RECCE 327 and RECCE 529 anti-infective drug candidates, enhancing global IP protection.
Ionic Rare Earths Ltd completed its first shipment of recycled rare earth oxides to Brazil, advancing its sustainable supply chain strategy via the Viridion JV.
Imugene Ltd appointed Dr John Byon as chief medical officer to lead clinical development of its immuno-oncology pipeline.
Latrobe Magnesium Ltd has completed regulatory documentation and is ready to begin ore commissioning at its Stage 1 Demonstration Plant in Victoria.
Solis Minerals Ltd has mobilised a drill rig to begin a 2,500 metre program at its Chancho al Palo Project in Peru, targeting multiple copper anomalies.
2:55pm: Stocks on the move
Ulta Beauty Inc shares surged over 11% after the company posted better-than-expected Q1 earnings and raised its full-year guidance.
Canopy Growth Corporation shares plunged over 21% in New York after reporting a wider quarterly loss and declining revenue.
Regeneron Pharmaceuticals Inc fell nearly 19% after mixed results from Phase 3 trials of its experimental COPD drug with Sanofi cast doubt on its approval.
Zscaler Inc. shares rose more than 8% after the company beat Q3 expectations and raised its full-year revenue forecast.
Costco Wholesale Corporation topped earnings and revenue estimates for its fiscal Q3, with revenue climbing 8% year-over-year to $63.2 billion.
Gap Inc shares dropped 15% in after-hours trading after warning that Trump-era tariffs could slash operating income by up to $300 million.
1:23pm: Friday's headlines
The US Securities and Exchange Commission has dropped its lawsuit against Binance and founder Changpeng Zhao, ending one of its final high-profile crypto enforcement actions.
US markets showed muted reaction on Friday following the release of the Federal Reserve’s preferred inflation gauge, with analysts saying April’s Personal Consumption Expenditures (PCE) Index points to continued disinflation—though rising incomes and persistent trade policy uncertainty may complicate the Fed’s next move.
President Trump stirred the pot again Friday, accusing China of having "totally violated its agreement with us" — a sharp reversal just weeks after a temporary truce was reached.
U.S. consumer sentiment in May held steady at 52.2, matching the preliminary reading and slightly above the forecast of 51.5.
12:45pm: China trade jitters
Stocks are sharply in the red at midday, with all three major indexes feeling the heat as investors react to a fresh round of U.S.-China trade jitters and legal uncertainty around tariffs. The tech-heavy Nasdaq Composite is bearing the brunt, down 1.5%, as heavyweight technology names take a beating. The S&P 500 is off 1%, showing weakness across most sectors, while the Dow Jones Industrial Average is down a milder 0.6%.
The sell-off comes amid rising friction between Washington and Beijing. President Trump stirred the pot again Friday, accusing China of having "totally violated its agreement with us" — a sharp reversal just weeks after a temporary truce was reached. That comment added fuel to concerns that talks between the two economic superpowers have hit a wall.
Scott Bessent, speaking to Fox News Thursday, said the trade negotiations are “a bit stalled” and suggested a phone call between Trump and Chinese President Xi Jinping may be needed to get things moving again. The countries remain at odds on several fronts, including chip restrictions and visa policies.
Adding to the uncertainty, a U.S. appeals court on Thursday temporarily reinstated Trump’s global tariffs, after they were blocked by a trade court. The White House now has until next Monday to challenge the ruling — and is also exploring other avenues to reimpose the duties.
Despite the political turbulence, economic data offered at least a hint of stability. The latest reading on the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, showed prices rose in line with expectations in April, both month-over-month and year-over-year. It’s a sign inflation is continuing to cool — but not enough to distract markets from the escalating geopolitical tensions.
11:51am: Strong performance
Although stocks were mixed on the final day of the month due to rising trade war tensions, equity indices still delivered a strong performance in May, says Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"Whereas Asian and US stock indices dipped on the last day of the month while most European markets regained some of Thursday's trade uncertainty induced losses, the month of May showed gains across the board," Rudolph commented.
"Slowing US consumer spending, stable PCE and German inflation data didn't move the dial much as investors look forward to next week's US employment and purchasing managers data which is hoped to provide some clues as to the impact of tariffs on the American economy."
11:12am: Consumer sentiment holds steady
U.S. consumer sentiment in May held steady at 52.2, matching the preliminary reading and slightly above the forecast of 51.5.
Inflation expectations eased, with the 5-10 year outlook falling to 4.2% from 4.6% and the one-year expectation dropping to 6.6% from 7.3%.
10:35am: 'A conundrum'
April’s PCE inflation data reinforced expectations that the Federal Reserve will maintain its cautious stance, especially as personal income posted a strong 0.8% gain.
Analysts noted the mixed signals—Jamie Cox of Harris Financial called the continued disinflation “a conundrum,” while LPL’s Jeffrey Roach said April’s data was “as good as it gets,” warning that inflation may reaccelerate later in 2025.
Chris Zaccarelli of Northlight Asset Management said the Fed has stayed quiet amid stable inflation and jobs data, but warned prolonged tariff uncertainty could eventually force aggressive rate cuts if economic growth stalls.
9:51am: PCE inflation holds steady
Wall Street opened lower Friday as investors juggled mixed economic data and growing trade tensions.
April’s PCE inflation data came in right around expectations—core prices rose just 0.1% on the month—but a surprising 0.8% jump in personal income suggests the Fed may still have reason to stay cautious.
Meanwhile, record-breaking declines in U.S. goods imports and a cooling in consumer spending added to the murky picture.
The S&P 500 fell 0.4%, the Nasdaq lost 0.6%, and the Dow edged down 0.1%.
Trade drama re-entered the spotlight after the U.S. Court of Appeals paused a lower court ruling that would have scrapped Trump-era tariffs, effectively hitting the brakes on yesterday’s wave of optimism. Treasury Secretary Bessent confirmed U.S.-China negotiations have “stalled,” and said progress might now depend on direct talks between Trump and Xi.
As Swissquote’s Ipek Ozkardeskaya put it, “uncertainty has surged—no one is quite sure what’s legal and what’s not anymore.” With the legal fate of tariffs still hanging and a critical June 9 deadline approaching for European trade talks, markets are on edge. The legal tools still at play—ranging from national security to unfair trade practices—mean there’s no clear roadmap forward. And with that, the “Tariff Saga: Act 3” is officially underway.
In corporate news, Gap shares tumbled after warning that rising tariffs could eat into profits, while Boeing bucked the trend, gaining ground as the Justice Department dropped a fraud charge against the company.
8.15am: S&P tipped to lead losses as trading gets underway
Wall Street stocks are expected to start lower on Friday after a federal appeals court temporarily paused a ruling that blocked President Donald Trump's sweeping tariffs, a day after a lower court had blocked them, calling the process behind their rollout “unlawful.”
S&P futures were pointing to a 0.1% loss an hour and a half before the opening bell, with Dow Jones futures flat and those for the Nasdaq just a few points lower.
All three indexes made moderate gains on Thursday, with the Dow gaining 0.3% and the S&P 500 and the Nasdaq both adding 0.4%.
"While the markets may be reflecting the 'as you were' developments, if anything this week’s courtroom drama has added another layer of uncertainty to what was already an unsettling series of events," commented interactive investor's Richard Hunter.
"It appears that the White House may have other avenues to explore to maintain the tariffs whatever the outcome, while at the same time it could find its negotiating hand weakened if foreign powers hold fire on any trade deals while the possibility of the tariffs being rescinded is still in play."
In Europe, the London market shrugged off the latest tariff developments, with the FTSE 100 jumping 0.7% in morning trade. The XETRA Dax in Frankfurt rose 0.9% and the Paris CAC 40 rose 0.3%.
With China in particular targeted by the new tariffs, Asian markets were weaker overnight. Hong Kong's Hang Seng shed 1.2% while the Shanghai SSE Composite fell 0.5%. Tokyo's Nikkei 225 closed 1.2% down.