Stock Market Today: Markets Close Lower But Post Strong Monthly Gains Amid Tariff Uncertainty
Major Indexes End May With Impressive Monthly Performance Despite Friday Decline
U.S. stock markets closed lower on Friday, May 30, 2025, as investors navigated ongoing uncertainty surrounding the Trump administration’s tariff policies. Despite the day’s losses, all three major indexes posted strong monthly gains, with the S&P 500 snapping three consecutive months of declines.
The Dow Jones Industrial Average fell 0.24% to close at 42,111.71, while the S&P 500 dropped 0.61% to 5,875.91. The tech-heavy Nasdaq Composite experienced the steepest decline, falling 1.16% to 18,952.93.
For the month of May, the S&P 500 gained over 5%, marking its biggest monthly increase since November 2023. The Nasdaq surged approximately 10%, while the Dow added about 4%.
Tariff Drama Continues to Influence Market Sentiment
Markets have been navigating a volatile global trade landscape this week. The U.S. Court of International Trade struck down President Donald Trump’s “reciprocal” tariffs on Wednesday night, only to have an appellate court temporarily reinstate them on Thursday afternoon. The legal battle is expected to continue, with the Trump administration potentially asking the Supreme Court to intervene as early as next week.
On Friday, President Trump escalated tensions with China, claiming Beijing had violated an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals. This statement included a veiled threat of tougher measures against China.
“It’s been quite a week,” said Mark Malek, chief investment officer at SiebertNXT. “Within four days we got a compressed version of what we’ve had for the entire month, which is the tug of war between forces that drove markets higher last year and the prior year – that being AI and technology growth stocks – and then this looming challenge we have with all these administration tariffs.”
Technology and Retail Stocks in Focus
Technology stocks, which had been leading the market’s gains in May, faced pressure on Friday. Nvidia (NVDA), which reported record revenue in its fiscal first quarter earlier this week due to robust AI demand, has been jostling with Microsoft (MSFT) and Apple (AAPL) for the title of world’s most valuable company.
While Nvidia and Microsoft shares have gained approximately 5% and 9% respectively since the start of the year, Apple has struggled, with its stock down about 20%. Analysts attribute Apple’s underperformance to President Trump’s aggressive tariffs on China, where the company assembles the majority of its products.
In the retail sector, Gap (GPS) shares plummeted more than 16% in extended trading after the company’s second-quarter revenue guidance disappointed investors, despite beating earnings expectations for Q1.
Economic Data and Upcoming Events
Friday’s economic data showed U.S. consumers increased their spending marginally in April. The Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, rose 0.1% last month, in line with expectations.
Looking ahead to next week, investors will be monitoring several key economic events. On Monday, June 2, markets will digest Manufacturing PMI data for the eurozone, UK, and US, along with the ISM Manufacturing PMI & Prices report.
The Reserve Bank of India will announce its interest rate decision on Friday, June 6, with analysts expecting a cut from the current 6% to 5.75%.
Market Outlook
Despite Friday’s pullback, some analysts remain optimistic about the market’s near-term prospects.
“I think as we head into summer that momentum can continue,” Ned Davis Research chief U.S. strategist Ed Clissold told CNBC. However, he cautioned that “as we move through the second quarter into the third quarter, there’s still some good momentum in the market” but harder economic data might eventually catch up with weaker soft data.
As markets enter June, investors will continue to monitor developments in trade policy, upcoming economic data releases, and corporate earnings to gauge the direction of the economy and stock market for the remainder of 2025.
