Stock market today: S&P 500, Nasdaq, Dow waver as US-China tensions heat up while PCE inflation cools

Yahoo

3 days ago

US stocks wavered on Friday as investors absorbed a fresh wave of tariff uncertainty and a cooldown in inflation pressures, as measured by the Federal Reserve's preferred price gauge.
The tech-heavy Nasdaq (^IXIC) slipped about 0.4%. The benchmark S&P 500 (^GSPC) traded flat and the Dow (^DJI) ticked up 0.3%.
The Trump administration plans to broaden tech restrictions on China by targeting subsidiaries of firms already sanctioned, Bloomberg reported. The proposed rule would require US government licenses for transactions involving companies majority-owned by entities on the so-called Entity List, aiming to close loopholes used to circumvent existing curbs.
The Bloomberg report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US less than three weeks after the world's two largest economies reached a tariff detente.
Trade talks between the US and China are "a bit stalled," Scott Bessent told Fox News on Thursday. The Treasury Secretary said a call between Trump and President Xi is needed to reach a deal, as the two countries continue to clash over chip curbs and visas on the sidelines.
The China escalations came after the tariffs faced a bout of legal drama — a new source of uncertainty. On Thursday, a US appeals court on Thursday paused a trade court block on Trump's global tariffs, giving the White House until next Monday to file a challenge to the ruling. At the same time, his team is exploring other ways to issue the tariffs.
Read more: The latest on Trump's tariffs
Meanwhile, inflation continued cooling in April, according to the latest reading of the Personal Consumption Expenditures (PCE) index. The "core" PCE index, closely watched by the Fed, rose in line with expectations on a monthly and annual basis.
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Though May has been filled with trade-war switchbacks, US stocks are on track to close the month out on Friday with hefty gains. The S&P 500 is eyeing a jump of over 6%, the Dow, a rise of about 4%. The Nasdaq Composite is headed for a surge of almost 10% as tech stocks revive. The gauges are set for a winning week too.
Nvidia (NVDA) stock fell 3.5% Friday afternoon as the Trump administration signaled a potential reignition of the US-China trade war.
Bloomberg reported Friday midday that the US is planning to add new restrictions on Chinese tech companies shortly after Trump claimed that China had 'totally violated' a preliminary trade agreement with the US.
The renewal of the US's ongoing trade disputes with China comes after the two countries agreed to temporarily reduce sky-high tariff rates in mid-May following a meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Switzerland.
The news also follows after Nvidia said it's set to lose $8 billion in sales in its fiscal second quarter due to a recently enacted ban on exports of its less powerful Hopper GPUs for China, called H20 chips.
'China is, and will remain, the largest overhang on NVDA shares until we get resolution from the Trump administration,' DA Davidson analyst Gil Luria wrote in a note to investors Thursday.
Read the full story here.
Yahoo Finance's Pras Subramanian reports:
Read more here.
US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms.
The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs.
The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports.
The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled."
In afternoon trade, the Nasdaq (^IXIC) dropped about 1.6% while the benchmark S&P 500 (^GSPC) fell 1% and the Dow (^DJI) slipped 0.6%.
The Nasdaq Composite (^IXIC) sank to its lows of the day just before noon on Friday, falling about 0.6%. The chip sector led the decline with several key names under pressure after President Trump said China has "violated" its trade agreement with the US.
Nvidia (NVDA), AMD (AMD), Micron (MU), and Intel (INTC) were all down 2% or more.
Read more from Yahoo Finance's Laura Bratton.
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Regeneron (REGN) stock fell more than 18% in early trading after the company's experimental drug for smoker's lung failed a late-stage trial.
The drug did, however, pass a separate earlier-stage trial.
Read more on Regeneron here.
Consumer sentiment steadied in May as Americans grew more optimistic about the US economy following developments in President Trump's trade policy.
According to the final May reading of the University of Michigan consumer sentiment survey released Friday, headline sentiment remained unchanged from the previous month, halting a four-month streak of sharp declines.
While sentiment dipped in the preliminary May reading, it rebounded later in the month, buoyed by a temporary pause on certain tariffs on Chinese goods that helped improve the economic outlook.
"Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement," Joanne Hsu, director of consumer surveys at the University of Michigan, said in the release.
Long-run inflation expectations, which reflect the outlook over the next five to ten years, eased to 4.2% in May from 4.4% in April, marking the first decline since December 2024 and ending an unprecedented four-month streak of increases.
Meanwhile, year-ahead inflation expectations held relatively steady at 6.6%, up slightly from 6.5% in April. This modest uptick is the smallest since the election and signals a break in the four-month trend of sharp increases in short-run inflation expectations.
Still, the improvement in inflation expectations wasn't enough to outweigh other areas of weakness, leaving consumers' overall mood subdued.
"These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May," Hsu said. "Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future."
US stocks slid on Friday as investors absorbed a fresh wave of tariffs uncertainty and a cooldown in inflation pressures, according to the Federal Reserve's preferred price gauge.
The benchmark S&P 500 (^GSPC) fell about 0.3% while the tech-heavy Nasdaq Composite (^IXIC) Dow Jones Industrial Average (^DJI) also slipped roughly 0.3%, after the major gauges ended Thursday in the green.
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases slowed in April as inflation remained above the Fed's 2% target. The release comes as investors have been closely watching data releases for signs of how President Trump's tariff policy is impacting the economy.
The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.5% on an annual basis, in line with expectations and lower than the 2.7% seen in March. Core prices rose 0.1% in April from the prior month, in line with expectations and the monthly increase seen in March.
On a yearly basis, PCE increased by 2.1%, below the 2.2% economists had expected.
From Bloomberg:
Read more here.
Costco (COST) stock was roughly flat in premarket trading after the company reported mixed earnings on Thursday.
The wholesale retailer's adjusted earnings per share were $4.28, above estimates for $4.24, while revenue of $63.21 billion slightly missed expectations.
Yahoo Finance's Brooke DiPalma reports:
Read more here.
Economic data: PCE inflation (April); University of Michigan consumer sentiment (May final)
Earnings: Canopy Growth (CGC)
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia's China setback is a tariffs bargaining chip
Obscure tax item in Trump's big bill is spooking Wall Street
Bessent: US-China trade talks are a 'bit stalled'
Trump-Xi phone call needed to reach a deal: Bessent
S&P 500's banner month faces off with June's lackluster record
Trump to celebrate Nippon Steel 'deal' at Pennsylvania plant
China's big techs prepare for AI future without Nvidia
Yahoo Finance's Hamza Shaban reports:
Read more here from today's Morning Brief.
Gap's (GAP) shares sank after the retailer laid out the multimillion-dollar hit to 2025 operating income it expects from President Trump's tariffs, but kept its 2025 forecast unchanged.
The stock dropped over 14% despite the retailer posting better-than-expected sales and profit in its first quarter results late on Thursday.
Gap said it expects added tariff-related costs of $250 million to $300 million. But the company said it has strategies to halve that amount, without providing full details. It projects a hit of up to $150 million to its full-year operating income, mainly in the second half.
Reuters reported:
Read more here.
Markets across the Asia-Pacific saw pullbacks Friday after yesterday's boost following the temporary reinstatement of Trump's "unlawful" tariffs.
Japan's benchmark Nikkei 225 (^N225) declined 1.1% with investors eyeing growing inflation.
In South Korea, the Kospi (^KS11) dropped 0.9% as markets remain rattled ahead of a presidential election in a tough political climate.
Hong Kong's Hang Seng Index (^HSI) sank 1.5% as China's CSI 300 (3188.HK) sli0.3%
Australia's S&P/ASX 200 (^AXJO) hovered around the baseline, with a gain of less than 0.1%
Newsmax (NMAX)
Shares in conservative media group Newsmax dropped 10.4% after hours Thursday resulting in a drop of over 75% since the company went public in March. Despite growing viewership Newsmax has faced a number of problems and is currently still engaged in a lawsuit with Dominion Voting Systems over "false claims" spread by the news source after the 2020 election. An overly ambitious IPO valuation combined with weak financial returns have continued to crater stock value.
Ulta Beauty (ULTA)
Ulta Beauty stock jumped up 8.3% in extended trading after the company beat analyst expectations for Q1. A 4.5% increase in net sales leading to $2.8b in revenue allowed Ulta to issue better-than-expected guidance for Q2. Earnings were reported at $6.70 per share.
The Gap (GAP)
Stock in apparel company The Gap nosedived 14.8% after-hours despite a solid earnings report as investors eye a potential a $300m hit to the bottom line from Trump's tariffs. The Gap reported revenue of $3.46 billion, well over analyst expectations of $3.42, while earnings per share came in at $0.51.
Nvidia (NVDA) stock fell 3.5% Friday afternoon as the Trump administration signaled a potential reignition of the US-China trade war.
Bloomberg reported Friday midday that the US is planning to add new restrictions on Chinese tech companies shortly after Trump claimed that China had 'totally violated' a preliminary trade agreement with the US.
The renewal of the US's ongoing trade disputes with China comes after the two countries agreed to temporarily reduce sky-high tariff rates in mid-May following a meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Switzerland.
The news also follows after Nvidia said it's set to lose $8 billion in sales in its fiscal second quarter due to a recently enacted ban on exports of its less powerful Hopper GPUs for China, called H20 chips.
'China is, and will remain, the largest overhang on NVDA shares until we get resolution from the Trump administration,' DA Davidson analyst Gil Luria wrote in a note to investors Thursday.
Read the full story here.
Yahoo Finance's Pras Subramanian reports:
Read more here.
US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms.
The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called "Entity List," aiming to close loopholes used to bypass existing curbs.
The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports.
The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having "violated" its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had "stalled."
In afternoon trade, the Nasdaq (^IXIC) dropped about 1.6% while the benchmark S&P 500 (^GSPC) fell 1% and the Dow (^DJI) slipped 0.6%.
The Nasdaq Composite (^IXIC) sank to its lows of the day just before noon on Friday, falling about 0.6%. The chip sector led the decline with several key names under pressure after President Trump said China has "violated" its trade agreement with the US.
Nvidia (NVDA), AMD (AMD), Micron (MU), and Intel (INTC) were all down 2% or more.
Read more from Yahoo Finance's Laura Bratton.
Yahoo Finance's Jennifer Schonberger reports:
Read more here.
Regeneron (REGN) stock fell more than 18% in early trading after the company's experimental drug for smoker's lung failed a late-stage trial.
The drug did, however, pass a separate earlier-stage trial.
Read more on Regeneron here.
Consumer sentiment steadied in May as Americans grew more optimistic about the US economy following developments in President Trump's trade policy.
According to the final May reading of the University of Michigan consumer sentiment survey released Friday, headline sentiment remained unchanged from the previous month, halting a four-month streak of sharp declines.
While sentiment dipped in the preliminary May reading, it rebounded later in the month, buoyed by a temporary pause on certain tariffs on Chinese goods that helped improve the economic outlook.
"Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement," Joanne Hsu, director of consumer surveys at the University of Michigan, said in the release.
Long-run inflation expectations, which reflect the outlook over the next five to ten years, eased to 4.2% in May from 4.4% in April, marking the first decline since December 2024 and ending an unprecedented four-month streak of increases.
Meanwhile, year-ahead inflation expectations held relatively steady at 6.6%, up slightly from 6.5% in April. This modest uptick is the smallest since the election and signals a break in the four-month trend of sharp increases in short-run inflation expectations.
Still, the improvement in inflation expectations wasn't enough to outweigh other areas of weakness, leaving consumers' overall mood subdued.
"These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May," Hsu said. "Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future."
US stocks slid on Friday as investors absorbed a fresh wave of tariffs uncertainty and a cooldown in inflation pressures, according to the Federal Reserve's preferred price gauge.
The benchmark S&P 500 (^GSPC) fell about 0.3% while the tech-heavy Nasdaq Composite (^IXIC) Dow Jones Industrial Average (^DJI) also slipped roughly 0.3%, after the major gauges ended Thursday in the green.
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases slowed in April as inflation remained above the Fed's 2% target. The release comes as investors have been closely watching data releases for signs of how President Trump's tariff policy is impacting the economy.
The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.5% on an annual basis, in line with expectations and lower than the 2.7% seen in March. Core prices rose 0.1% in April from the prior month, in line with expectations and the monthly increase seen in March.
On a yearly basis, PCE increased by 2.1%, below the 2.2% economists had expected.
From Bloomberg:
Read more here.
Costco (COST) stock was roughly flat in premarket trading after the company reported mixed earnings on Thursday.
The wholesale retailer's adjusted earnings per share were $4.28, above estimates for $4.24, while revenue of $63.21 billion slightly missed expectations.
Yahoo Finance's Brooke DiPalma reports:
Read more here.
Economic data: PCE inflation (April); University of Michigan consumer sentiment (May final)
Earnings: Canopy Growth (CGC)
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia's China setback is a tariffs bargaining chip
Obscure tax item in Trump's big bill is spooking Wall Street
Bessent: US-China trade talks are a 'bit stalled'
Trump-Xi phone call needed to reach a deal: Bessent
S&P 500's banner month faces off with June's lackluster record
Trump to celebrate Nippon Steel 'deal' at Pennsylvania plant
China's big techs prepare for AI future without Nvidia
Yahoo Finance's Hamza Shaban reports:
Read more here from today's Morning Brief.
Gap's (GAP) shares sank after the retailer laid out the multimillion-dollar hit to 2025 operating income it expects from President Trump's tariffs, but kept its 2025 forecast unchanged.
The stock dropped over 14% despite the retailer posting better-than-expected sales and profit in its first quarter results late on Thursday.
Gap said it expects added tariff-related costs of $250 million to $300 million. But the company said it has strategies to halve that amount, without providing full details. It projects a hit of up to $150 million to its full-year operating income, mainly in the second half.
Reuters reported:
Read more here.
Markets across the Asia-Pacific saw pullbacks Friday after yesterday's boost following the temporary reinstatement of Trump's "unlawful" tariffs.
Japan's benchmark Nikkei 225 (^N225) declined 1.1% with investors eyeing growing inflation.
In South Korea, the Kospi (^KS11) dropped 0.9% as markets remain rattled ahead of a presidential election in a tough political climate.
Hong Kong's Hang Seng Index (^HSI) sank 1.5% as China's CSI 300 (3188.HK) sli0.3%
Australia's S&P/ASX 200 (^AXJO) hovered around the baseline, with a gain of less than 0.1%
Newsmax (NMAX)
Shares in conservative media group Newsmax dropped 10.4% after hours Thursday resulting in a drop of over 75% since the company went public in March. Despite growing viewership Newsmax has faced a number of problems and is currently still engaged in a lawsuit with Dominion Voting Systems over "false claims" spread by the news source after the 2020 election. An overly ambitious IPO valuation combined with weak financial returns have continued to crater stock value.
Ulta Beauty (ULTA)
Ulta Beauty stock jumped up 8.3% in extended trading after the company beat analyst expectations for Q1. A 4.5% increase in net sales leading to $2.8b in revenue allowed Ulta to issue better-than-expected guidance for Q2. Earnings were reported at $6.70 per share.
The Gap (GAP)
Stock in apparel company The Gap nosedived 14.8% after-hours despite a solid earnings report as investors eye a potential a $300m hit to the bottom line from Trump's tariffs. The Gap reported revenue of $3.46 billion, well over analyst expectations of $3.42, while earnings per share came in at $0.51.