Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell on May 30, 2025, in New York City.
Angela Weiss | AFP | Getty Images
The S&P 500 was little changed on Friday to close out a big winning month, as investors shook off trade war fears after President Donald Trump said China violated its preliminary trade agreement.
The broad index inched down by 0.01% to end at 5,911.69. The Nasdaq Composite slid 0.32% to 19,113.77, while the Dow Jones Industrial Average added 54.34 points, or 0.13%, to finish at 42,270.07.
Friday’s trading session marked the end of a strong May trading month, with a chunk of the rally following a trade deal announcement between the U.S. and UK. Investors hoped that could pave the way for more agreements with other countries facing duties.
The S&P 500 added 6.2% this month, while the Nasdaq surged 9.6% in that time. Both notched their best months since November 2023. The 30-stock Dow has gained 3.9% on the month.
For the week, the S&P 500 jumped 1.9%, while the 30-stock Dow rose 1.6%. The tech-heavy Nasdaq advanced 2%.
Stocks initially tumbled in Friday’s session after Trump said in a social media post that China “violated” its current trade agreement with the U.S. Later in the trading day, a Bloomberg report, citing people familiar, said the administration plans to broaden restrictions on China’s tech sector.
That came after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks “are a bit stalled.” Investors are now wondering if, or when, a long-term agreement between China and the U.S. can be reached.
The administration has found its contentious plan for broad and steep levies in legal limbo. Legal concerns hit a boiling point after the Court of International Trade on Wednesday night halted the majority of Trump’s tariffs.
However, an appeals court granted a stay on Thursday afternoon, allowing the duties to remain in place until next week. The Trump administration considered using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to The Wall Street Journal.
The legal battle around tariffs offers the latest dose of uncertainty for what was already an uneasy market. Investors have contended with macroeconomic concerns tied to tariffs and worry that the shakeup to U.S. trade policy could cause a recession.
“It’s an awkward time,” said Jay Hatfield, CEO of Infrastructure Capital Management. “If you’re an investor, you want to bet on good earnings, not good tweets about tariffs.”
