Stock Market Today: Markets Cautious as Trade Tensions and PCE Data Take Center Stage
Major Indexes Pull Back Amid Trade Policy Uncertainty
As of midday Friday, May 30, 2025, U.S. markets are showing caution with the major indexes pulling back from their recent gains. The S&P 500 is down 0.1%, the Dow Jones Industrial Average has slipped 0.04%, and the Nasdaq Composite is also down 0.1% as investors navigate a volatile global trade landscape.
This slight pullback comes after Thursday’s session where markets closed modestly higher but well off their intraday highs. The S&P 500 ended Thursday up 0.4% at 5,912.17, the Nasdaq Composite advanced 0.39% to 19,175.87, and the Dow Jones Industrial Average added 117.03 points to finish at 42,215.73.
Despite today’s caution, the major indexes are poised to close out May with impressive gains. The S&P 500 has added more than 6% this month, while the Nasdaq Composite has surged 10%. The 30-stock Dow has gained about 4% in May.
Trade Policy Uncertainty Weighs on Markets
The back-and-forth news on trade policy continues to create uncertainty in the markets. On Wednesday night, the Court of International Trade halted the majority of President Donald Trump’s tariffs, ruling that Trump had overstepped his authority. However, an appeals court granted a stay on Thursday afternoon, allowing the duties to remain in place until next week.
“In general, markets don’t like uncertainty, because it makes forecasting more difficult,” said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. “We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility.”
This trade uncertainty has particularly impacted tech stocks, with Asian tech stocks falling Friday amid increased concerns over the reinstatement of Trump’s trade tariffs.
PCE Inflation Data Released Today
Investors are closely analyzing today’s release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. According to the latest data, PCE inflation declined to 2.1% in April 2025, the lowest level in seven months, down from 2.3% in March and below forecasts of 2.2%.
Similarly, core PCE inflation (which excludes food and energy) declined to 2.5%, its lowest since March 2021, from an upwardly revised 2.7% previously.
Notable Stock Movers
Several stocks are making significant moves today, continuing momentum from yesterday’s trading:
– Nvidia (NVDA) shares remain elevated after jumping 6% in extended trading yesterday following better-than-expected earnings. The AI giant reported adjusted earnings of 96 cents per share on $44.06 billion in revenue, exceeding analyst expectations of 93 cents and $43.31 billion, respectively. The company’s data center business surged 73% year-over-year.
– Gap (GPS) shares are down more than 17% after the clothing retailer reported weaker-than-expected quarterly results.
– E.l.f. Beauty (ELF) shares soared 9% after fiscal fourth-quarter earnings and revenue beat analyst estimates, although the company withheld its full-year outlook due to tariff uncertainty.
– HP (HPQ) shares fell 10% after second-quarter earnings missed analyst expectations.
Looking Ahead: Economic Calendar
Investors will be watching for several key economic releases in the coming days. The Trimmed Mean PCE Inflation Rate was released today at 11:00 am Central Time.
Looking ahead to next week, market participants will be closely monitoring the ongoing developments in trade policy, with the Trump administration indicating it could ask the Supreme Court as early as today to pause the federal court’s original ruling if necessary.
Ned Davis Research chief U.S. strategist Ed Clissold told CNBC’s “Closing Bell” on Thursday: “I think as we head into summer that momentum can continue, [but] then that’s where the hard data that may catch up to the weaker, soft data, could come into play. I think as we move through the second quarter into the third quarter, there’s still some good momentum in the market.”
As we close out the month of May, the information technology sector has been the standout performer, jumping around 11% this month – on track for its best monthly performance since November 2023. Super Micro Computer (SMCI) and Seagate Technology (STX) led the sector higher, with both stocks soaring more than 29% in the month.
