The S&P 500 was little changed on Friday. It closed out a strong month despite ongoing trade policy confusion. Investors largely ignored trade war fears after President Donald Trump accused China of violating a preliminary trade agreement.
The broad index inched down by 0.01% to end at 5,911.69. The Dow Jones Industrial Average slid 0.32% to 19,113.77. The Nasdaq Composite added 54.34 points, or 0.13%, to finish at 42,270.07.
Friday’s trading session marked the end of a robust May. Much of the rally was attributed to progress in trade talks between the U.S. and UK. Investors are hopeful that these developments could pave the way for more agreements with other countries facing duties.
The S&P 500 added 6.2% in May. The Nasdaq surged 9.6%. They recorded their best months since November 2023.
The 30-stock Dow gained 3.9% on the month. For the week, the S&P 500 jumped 1.9%. The Dow rose 1.6%.
The tech-heavy Nasdaq advanced 2%. Stocks initially tumbled in Friday’s session after Trump stated on social media that China had violated its current trade agreement with the U.S. Later in the day, reports suggested that the administration plans to broaden restrictions on China’s tech sector. U.S.-China trade talks have stalled.
The legal fights over tariffs add to the market’s uncertainty. A recent Court of International Trade decision allowed Trump’s tariffs to remain in place until the next week. If the administration imposes tariffs under the Trade Act of 1974, it could exacerbate the current market volatility.
“It’s an awkward time,” said Jay Hatfield, CEO of Infrastructure Capital Management. “If you’re an investor, you want to bet on good earnings, not good tweets about tariffs.”
The S&P 500 ended slightly below its flatline on Friday. The Nasdaq Composite closed up 0.1%.
The Dow ticked down 0.3%. Health care was the only S&P 500 sector to decline in May. It was on track for a 5.8% drop.
The sector was weighed down by companies facing setbacks in annual forecasts and CEO departures.
s&p 500’s strong month amid tensions
Regeneron, for instance, plunged 19% in May due to mixed trial results for a respiratory drug developed with Sanofi.
Despite Friday’s downturn, the S&P 500 is on track to record its biggest monthly gain in about a year and a half. It rose approximately 5.8%. This was its best monthly performance since November 2023.
The Nasdaq performed particularly well, surging more than 9% in May. Small-cap stocks lagged in session and week performance. The Russell 2000 slipped 0.8% on Friday.
Comparatively, the S&P 500 ticked just 0.2% lower. For the week, the Russell 2000 has risen less than 1%. The S&P 500 has jumped 1.7%.
Consumers grew slightly more optimistic about the economic outlook following a cooling off in trade hostilities between the U.S. and China, according to a survey released Friday. The sentiment index showed a revised reading of 52.2 for May. This was flat from April but slightly higher than mid-month levels.
Investors faded Nvidia’s initial earnings jump for the fourth consecutive time after the company’s data center business showed significant year-over-year growth. The stock opened Thursday trading 6.2% higher but closed below its opening level. Costco gained more than 3% following strong earnings and an 8% sales jump from the same period last year.
Ulta Beauty’s shares soared nearly 13% to hit a 52-week high after raising its forecast and surpassing quarterly expectations. Gap Inc. plunged 20% due to a cloudy outlook for current-quarter sales despite beating earnings and revenue estimates.
Tech stocks staged an impressive comeback in May. They benefited from a preliminary trade deal between the U.S. and China. Information technology stocks rose more than 10% in May.
This was the best-performing sector in the S&P 500. Friday’s session started off with declines. The Dow fell more than 100 points, or 0.3%, shortly after the opening bell.
The S&P 500 and Nasdaq also slid 0.3%. Despite trade uncertainties, the market’s robust performance in May showcases investor resilience amid a complex economic landscape. As trade policies evolve, market participants remain cautious but hopeful for long-term agreements that could stabilize the global economy.
