Stock market today: Dow, S&P 500, Nasdaq futures slip as US-China tensions heat up as PCE inflation cools
US stock futures fell 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.
Dow Jones Industrial Average futures (YM=F) were down 0.4%, while those on the S&P 500 (ES=F) lost 0.4%. Contracts the tech-heavy Nasdaq 100 (NQ=F) also lost 0.3%, after the major gauges ended Thursday in the green.
President Trump on Friday ratcheted up tensions with China, claiming it has "totally violated its agreement with 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 (^GSPC) is eyeing a jump of over 6%, the Dow (^DJI), a rise of about 4%. The Nasdaq Composite (^IXIC) is headed for a surge of almost 10% as tech stocks revive. The gauges are set for a winning week, too.
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.
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.
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