US stock market today: Dow edges up but S&P 500 and Nasdaq fall as Trump's China tariff threat hits Apple, Nvidia, Regeneron and Gap—even as inflation cools
US Stock market today saw the S&P 500 and Nasdaq slip as investors reacted to rising US-China tensions while inflation showed signs of cooling. President Trump's fresh comments on China reignited trade fears, even as the Fed's preferred PCE inflation index pointed to easing price pressures. The Dow edged slightly higher, but uncertainty remains as trade talks stall and tariffs return to the spotlight. Despite the volatility, stocks are set to close May with strong gains. From tech rallies to falling Regeneron shares, this market update covers all key moves and numbers that investors need to watch closely right now.
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Market summary – how the major indexes moved
S&P 500: Fell 0.1%
Nasdaq Composite: Dropped 0.3%
Dow Jones Industrial Average: Rose 0.1%
Key market drivers
1. Trump's tough talk on China renews trade war fears
President Trump accused China of 'totally violating its agreement' with the U.S.
Trade talks are reportedly 'a bit stalled,' according to Treasury Secretary Scott Bessent.
Tariff tensions are escalating beyond goods to include chip export restrictions and visa issues.
A U.S. appeals court paused a lower court ruling that blocked Trump's tariffs—giving the White House until Monday to respond.
2. PCE inflation data shows cooling price pressures
Core PCE (month-over-month): +0.1% (unchanged from March, in line with forecasts)
Core PCE (year-over-year): +2.5% (down from 2.7% in March)
Headline PCE (year-over-year): +2.1% (slightly below the expected 2.2%)
Monthly market performance – is May still ending strong?
S&P 500: Up +6% for May
Dow Jones: Gained +4%
Nasdaq Composite: Surged nearly +10%, led by a tech stock rebound
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Stocks to watch today
Regeneron Pharmaceuticals (REGN)
Shares plunged over 17%
Reason: Disappointing late-stage trial results for its smoker's lung disease drug
Despite earlier promising results, the final trial failed to meet expectations, triggering a sharp selloff
Other notable movers:
Gap (GPS): Fell 17% after a weak Q2 forecast
Ulta Beauty (ULTA): Rose 7% after strong Q1 results
Dell Technologies (DELL): Up 1.7% on strong revenue beat
Consumer sentiment – signs of stabilization
University of Michigan's final May reading: Held steady, breaking a 4-month decline streak
Positive factor: Temporary China tariff pause boosted economic optimism
Inflation expectations
Long-run (5-10 years): Dropped to 4.2% (from 4.4% in April)
Short-run (1 year): Ticked up to 6.6% (from 6.5%)
Why are investors worried about Trump's new China tariff comments?
How is the cooling PCE inflation data affecting market sentiment?
Is the stock market still on track for a strong may finish?
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S&P 500: +6% in May
Dow Jones: +4% for the month
Nasdaq Composite: Nearly +10%, boosted by a tech sector rebound
What happened to Regeneron stock and why did it fall so sharply?
Is consumer sentiment improving or staying flat?
Long-run inflation outlook fell to 4.2% from 4.4% in April
Short-run (1-year) expectations rose slightly to 6.6% from 6.5%
What's next for the stock market and economy?
FAQs:
US Stock Market Today: S&P 500 and Nasdaq Slip as US-China Tensions Flare Up, Even as Inflation Cools- The stock market today showed mixed signals as Wall Street reacted to fresh concerns over US-China trade tensions while digesting key inflation data. The S&P 500 dropped 0.1%, and the Nasdaq Composite slipped around 0.3%. In contrast, the Dow Jones Industrial Average inched up by 0.1%, showing some resilience.Investors faced two competing stories: cooling inflation pressures and growing uncertainty around tariffs between the world's two biggest economies. President Trump's latest remarks about China 'totally violating its agreement' with the US reignited trade concerns, especially as talks appear to have stalled. Meanwhile, inflation data brought a bit of relief, showing price pressures are starting to ease.Despite trade concerns, the Dow showed resilience, while tech-heavy indexes slipped slightly amid cautious sentiment.Investor sentiment takeaway: Easing inflation could reduce pressure on the Federal Reserve to raise interest rates again.Despite daily volatility, May is closing with solid gains across the board.On Friday, President Trump escalated rhetoric against China, accusing Beijing of breaking its deal with the US just weeks after the two nations had agreed on a temporary tariff truce. 'They've totally violated their agreement with us,' Trump told reporters, stoking fears of a renewed US-China trade war.Talks between Washington and Beijing have reportedly hit a roadblock. Scott Bessent told Fox News that discussions are 'a bit stalled,' suggesting only a direct call between Trump and Chinese President Xi Jinping could push things forward. The standoff isn't just about tariffs anymore—it now includes chip restrictions and visa issues, adding layers of complexity to already tense negotiations.Adding to the legal confusion, a US appeals court on Thursday paused a trade court decision that had blocked Trump's global tariffs. The White House now has until Monday to challenge the ruling, which could reshape how tariffs are handled going forward.While trade headlines dominated attention, the latest PCE inflation report also moved markets. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, rose just 0.1% month-over-month in April. That's the same rate as in March and exactly what economists had forecast.On a yearly basis, core PCE inflation came in at 2.5%, down from March's 2.7%, and matched analyst expectations. Meanwhile, headline PCE rose 2.1% year-over-year, slightly below the 2.2% projection. These numbers suggest that inflation is easing, though still above the Fed's 2% target.The market took this as a positive sign, as it could reduce pressure on the Fed to hike interest rates further. Still, uncertainty from trade tensions has kept investors cautious.Despite the choppy session, US stocks remain on pace to close May with solid gains. Here's where the major indexes stand heading into the final trading day of the month:Even with the ups and downs triggered by trade headlines and inflation reports, investors are looking at a winning week and month. The strong performance from tech giants has helped power the Nasdaq's rally, reflecting renewed optimism in growth stocks.In individual stock news, Regeneron Pharmaceuticals (REGN) took a hard hit on Friday. Shares dropped over 17% after the biotech firm announced mixed trial results for its new drug targeting smoker's lung disease.While the drug failed to show strong results in a late-stage trial, it did perform better in an earlier-stage study. Still, investors were disappointed by the setback, leading to a sharp selloff in the stock during early trading.According to the University of Michigan's consumer sentiment survey, confidence among US consumers stabilized in May. The final reading for the month showed sentiment holding steady compared to April, breaking a four-month decline streak.One factor that helped? A temporary pause on certain China tariffs, which boosted optimism about the economy's direction. Joanne Hsu, director of consumer surveys at the university, explained: 'Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement.'While this data shows some relief, Hsu noted that consumers remain concerned. 'These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May,' she said.As May wraps up, investors will likely stay focused on US-China developments, especially with Monday's court deadline looming for the White House on tariffs. At the same time, attention will turn to whether the Fed sees enough progress on inflation to hold off on further rate hikes.With solid month-end gains across major indexes and cooling inflation numbers, markets have reasons to stay optimistic—as long as geopolitical tensions don't boil over again.The stock market today reflected a tug-of-war between easing inflation and renewed global trade worries. While Friday was mixed, the broader month paints a more hopeful picture for US equities.Rising US-China tensions and renewed tariff fears made the market slip despite cooling inflation data.The PCE index showed inflation is easing, giving hope the Fed might avoid more rate hikes.
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