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Business Insider
19 hours ago
- Automotive
- Business Insider
Trump Says He'll Speak to China President Xi after Trade Violation Accusation
Following his accusation this morning that China violated its preliminary trade deal with the U.S., President Trump reiterated the statement in the Oval Office during a press conference with Tesla (TSLA) CEO Elon Musk. Additionally, Trump said that he will speak with China President Xi Jinping, adding that 'Hopefully we'll work that out.' Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter U.S.-China Trade Tensions Rise Trump's comments come as trade tensions rise between the two world powers. Trump's initial accusation did not specify how China violated the agreement, although U.S. Trade Representative Jamieson Greer said that the country was moving too slowly in removing tariff countermeasures and opening up its flow of critical rare earth minerals. Furthermore, the U.S. could soon impose sanctions on subsidiaries of Chinese technology companies included in the Entity List, per Bloomberg. The list consists of foreign companies that the U.S. deems a threat to national security.
Yahoo
a day ago
- Business
- Yahoo
Stock market today: S&P 500 marks best May in 30 years as Wall Street bets on tariff relief
US stocks rebounded from early losses Friday, capping off a volatile but strong month. The S&P 500 (^GSPC) logged its best May since 1990 and its best month since Nov. 2023, rising over 6%, while the Dow (^DJI) added 4% over the month and the Nasdaq (^IXIC) surged nearly 10%, thanks to tech sector strength. On the day, the Nasdaq dipped 0.3%, having recovered from a drop of more than 1.6% earlier in the session. The S&P 500 hovered near the flat line while the Dow edged up 0.1%. Markets navigated a mix of tariff uncertainty and signs of cooling inflation from the Fed's preferred price gauge. Despite trade-related turbulence, all three major indices finished both the week and the month in the green. Bloomberg reported on Friday that the Trump administration plans to expand tech restrictions on China to close loopholes used to circumvent existing curbs by targeting subsidiaries of already-sanctioned firms. The proposed rule would require US government licenses for transactions involving companies that are majority-owned by firms on the so-called Entity List. 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. Read more: The latest on Trump's tariffs 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 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. 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. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy US stocks rebounded from early losses Friday, capping off a volatile but strong month. The S&P 500 (^GSPC) logged its best May since 1990 and its best month since Nov. 2023, rising over 6%. The Dow (^DJI) added 4% over the month and the Nasdaq (^IXIC) surged nearly 10%. On the day, the Nasdaq dipped 0.3%, having recovered from a drop of more than 1.6% earlier in the session. The S&P 500 hovered near the flat line while the Dow edged up 0.1%. Stocks recovered from their session lows heading into the close. The Dow (DJI) traded in positive territory, while the Nasdaq (^IXIC) was off about 0.4%. The S&P (^GSPC) hovered just below the flat line. 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 ( 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. US stocks rebounded from early losses Friday, capping off a volatile but strong month. The S&P 500 (^GSPC) logged its best May since 1990 and its best month since Nov. 2023, rising over 6%. The Dow (^DJI) added 4% over the month and the Nasdaq (^IXIC) surged nearly 10%. On the day, the Nasdaq dipped 0.3%, having recovered from a drop of more than 1.6% earlier in the session. The S&P 500 hovered near the flat line while the Dow edged up 0.1%. Stocks recovered from their session lows heading into the close. The Dow (DJI) traded in positive territory, while the Nasdaq (^IXIC) was off about 0.4%. The S&P (^GSPC) hovered just below the flat line. 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 ( 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Stock market today: S&P 500, Nasdaq, Dow waver as US-China tensions heat up while PCE inflation cools
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. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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 ( 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 ( 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.
Yahoo
a day ago
- Business
- Yahoo
S&P 500 falls amid new US-China tech sanctions
-- Major averages, including the S&P 500, faced a downturn on Friday, falling 1% in response to reports of the US planning to expand technology sanctions against China. The proposed measures aim to target subsidiaries of Chinese companies currently under US restrictions, signaling an escalation in the ongoing tensions between the two economic powerhouses. The sell-off in the markets was primarily driven by news from Bloomberg indicating that the Trump administration is considering new regulations that would require US government licensing for transactions with entities that are majority-owned by firms already on the US sanctions list. This move is intended to close loopholes that have allowed Chinese companies to circumvent existing sanctions by establishing new subsidiaries. The potential for increased regulatory scrutiny and sanctions has raised concerns about the impact on global tech and semiconductor industries, which are deeply interconnected with Chinese firms. Some of China's largest tech entities, such as Huawei Technologies Co. and Yangtze Memory Technologies Co., are already facing restrictions under the US Entity List, and the new policy would further tighten these controls. While the White House and Commerce Department have not yet commented on the matter, the proposed subsidiary rule could be announced as early as June. The rule would apply a 50% ownership threshold in relation to companies on the Entity List, Military End-User list, and Specially Designated Nationals list. However, details and timing are subject to change as the policy and related sanctions are not finalized. The market's negative reaction reflects investor apprehension about the broader implications of heightened US-China tech tensions. The ongoing dispute has previously resulted in supply chain disruptions and has the potential to affect a wide range of industries reliant on technology and semiconductors. Related articles S&P 500 falls amid new US-China tech sanctions Saudi Arabia reportedly planning massive Airbus order Citi adds Knight-Swift to catalyst watch
Yahoo
a day ago
- Business
- Yahoo
Stock market today: S&P 500, Nasdaq, Dow drop as US-China tensions heat up while PCE inflation cools
US stocks headed lower 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) led the declines, dropping about 1.6% while the benchmark S&P 500 (^GSPC) fell 1% and the Dow (^DJI) slipped 0.6% after the major gauges ended Thursday in the green. Losses deepened after Bloomberg reported that the Trump administration plans to broaden tech restrictions on China by targeting subsidiaries of firms already sanctioned. 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. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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. 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 ( 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. 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 ( 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
