Gennaro Saporito, a specialist, and trader Patrick Casey are seen working together on the floor of the New York Stock Exchange on Thursday, May 29, 2025. (Photo: Richard Drew/AP)
Wall Street ended May on a quiet yet strong note, wrapping up its best monthly performance since late 2023. On Friday, trading was calm as investors weighed mixed earnings reports from major companies like Gap and Ulta Beauty, alongside ongoing uncertainty over former President Donald Trump’s tariff decisions.
The S&P 500 barely moved, slipping just 0.48 points to finish at 5,911.69. The Dow Jones rose 54.34 points, closing at 42,270.07, while the Nasdaq dropped 62.11 points to settle at 19,113.77.
Tariff Worries Return Despite Market Gains
A major concern throughout the month was Trump’s shifting stance on tariffs. Earlier hopes grew when he temporarily paused some tariffs on China and Europe. Further boosting optimism, a U.S. court blocked several of Trump’s broad tariff policies midweek, helping markets surge.
However, the relief might be short-lived. The White House has appealed the court’s decision, keeping tariffs in place for now. To make matters tenser, Trump reignited anxiety Friday morning by accusing China of violating trade agreements, sending a brief shiver through the markets. He posted on Truth Social: “So much for being Mr. NICE GUY!”
Despite this, market reactions were brief, and futures quickly steadied.
Mixed Earnings Stir Market Mood
Gap’s performance weighed heavily on the market. While it beat profit and revenue expectations, its warning about up to $300 million in added costs due to tariffs sent its stock plunging 20.2%.
On the upside, Ulta Beauty climbed 11.8% after exceeding earnings estimates and raising its revenue outlook. CEO Kecia Steelman noted challenges ahead but remained positive about future sales.
Costco also posted solid numbers, with a 3.1% gain following better-than-expected quarterly results. Meanwhile, Red Robin surprised investors with a profit, sending its shares soaring nearly 63%.
SharpLink Gaming, which made headlines earlier in the week with an astonishing 1,000% rise, slipped 3.2% after announcing a plan to raise $425 million to buy Ethereum-linked crypto assets.
Tech Stocks and Bonds Tell a Broader Story
Nvidia dragged down the S&P 500 more than any other stock Friday, falling 2.9% after rallying earlier in the week on strong earnings.
In the bond market, Treasury yields eased slightly. The 10-year yield dipped to 4.39%, and the two-year yield slipped to 3.90%. The declines came after reports showed consumer inflation was slightly lower than expected in April.
A consumer sentiment report from the University of Michigan showed Americans felt slightly more positive about the economy, especially after Trump’s tariff pause earlier in the month. Still, worries about the future linger, according to the survey’s director, Joanne Hsu.
Federal Reserve Remains Cautious
The Federal Reserve has kept interest rates steady through 2025 so far, after trimming them late last year. Officials remain cautious, waiting to see how global trade tensions and inflation evolve before making their next move. Lower interest rates can help the economy grow, but also risk stoking inflation.
Global Markets Show Mixed Signals
While U.S. markets ended May on a strong note, the mood abroad was less certain. European stocks were mixed, and most Asian markets closed in the red, showing that global investors remain uneasy as trade tensions and inflation worries continue to simmer.
