The S&P 500 ended May on a high note, notching a remarkable 6.2% gain — its strongest monthly performance since November 2023. The index closed Friday’s session at 5,911.69, nearly unchanged from the day before, but investors were already sitting on solid profits despite mounting concerns over tariffs and renewed tensions with China.
The Nasdaq Composite also had a stellar month, climbing 9.6% to close at 19,113.77 despite slipping 0.32% on Friday. Meanwhile, the Dow Jones Industrial Average rose 3.9% for the month, ending at 42,270.07 after a modest 0.13% gain on Friday.
The rally wasn’t driven by a single factor but gained steam after news broke of a fresh trade deal between the US and the UK, sparking hopes that more countries might soon see relief from ongoing tariff pressures.
Trump’s Comments Rattle Markets
Stocks saw a brief wobble on Friday after President Trump posted on social media accusing China of “violating” its current trade deal with the US. Markets quickly reacted, with gains momentarily erased before stabilizing. Later that day, Bloomberg reported that the administration was mulling new restrictions on China’s tech sector, sparking fresh worries that the US-China trade standoff was far from over.
Adding fuel to the fire, Treasury Secretary Bessent appeared on Fox News to confirm that trade talks with China had hit a deadlock, leaving investors to wonder whether a deal was even possible given the White House’s hardline approach.
Jay Hatfield, CEO of Infrastructure Capital Management, summed it up: “It’s a tough spot. Investors want to bet on earnings, not on the latest tweet about tariffs.”
The week also saw a court battle unfold, with the Court of International Trade temporarily blocking most of Trump’s existing tariffs over legal concerns. But by Thursday afternoon, an appeals court issued a stay that kept the tariffs in place, at least for now.
Meanwhile, The Wall Street Journal reported that the White House might use the Trade Act of 1974 to slap on new 15% tariffs for 150 days, sidestepping Congress entirely.
Weekly Figures Remain Strong
For the week, the S&P 500 rose 1.9%, the Dow gained 1.6%, and the Nasdaq advanced 2%. Overall, investors seemed willing to accept the uncertainty around trade and politics — as long as corporate earnings kept delivering.