Stock Market Today: Markets Close Mixed as Trade Uncertainty Persists and Inflation Data Looms

Major Indexes End May with Strong Monthly Gains Despite Friday’s Mixed Session

U.S. stocks closed mixed on Friday, May 30, 2025, as investors navigated ongoing trade policy uncertainty while digesting the latest economic data and corporate earnings reports. Despite today’s cautious trading, all three major indexes are set to close out May with impressive monthly gains.

The Dow Jones Industrial Average edged down 0.1% to close at 42,195.25, while the S&P 500 finished nearly flat at 5,910.83. The tech-heavy Nasdaq Composite slipped 0.2% to end at 19,145.32.

For the month of May, the S&P 500 has gained over 6%, while the Nasdaq Composite surged an impressive 10%. The 30-stock Dow has added approximately 4% during the same period.

Trade Policy Uncertainty Continues to Weigh on Markets

Market volatility persisted as investors continued to navigate the uncertain landscape surrounding President Donald Trump’s tariff policies. The back-and-forth legal battle over Trump’s “reciprocal” tariffs has created significant market uncertainty.

Earlier this week, the U.S. Court of International Trade ruled that Trump had overstepped his authority with the tariffs, only for an appeals court to grant a stay on Thursday, allowing the duties to remain in place until next week. This ongoing legal saga has capped wider market gains and contributed to investor caution.

“The tariff news cycle is expected to be an extended process, which can lead to higher short-term volatility,” noted Larry Tentarelli, founder of the Blue Chip Daily Trend Report. “In general, markets don’t like uncertainty, because it makes forecasting more difficult.”

Economic Data Points to Slowing Growth

Friday’s release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, was closely watched by investors seeking clues about the central bank’s future monetary policy direction.

Recent economic data has shown mixed signals. The Department of Labor reported that initial jobless claims increased by 14,000 to 240,000 for the week ended May 24, reaching the highest level for continuing claims since November 2021.

Additionally, GDP decreased at an annual rate of 0.2% in the first quarter of 2025, according to the second estimate released by the U.S. Bureau of Economic Analysis, slightly better than the previously reported 0.3% decline.

Corporate Earnings Drive Individual Stock Movements

Several major companies reported earnings that influenced individual stock movements. Gap (GPS) shares plummeted over 16% after the clothing retailer issued weaker-than-expected second-quarter revenue guidance despite beating earnings expectations for Q1.

Dell Technologies (DELL) gained more than 5% after reporting first-quarter revenue that surpassed analyst estimates and raising its full-year earnings guidance.

Costco (COST) shares remained relatively unchanged despite reporting quarterly results that beat analyst expectations, with same-store sales growth and gross margins above estimates.

Upcoming Earnings and Market Events

Looking ahead to next week, investors will be monitoring several key earnings reports and economic data releases. Companies scheduled to report earnings include Bank of Nova Scotia (BNS), Hormel Foods (HRL), Canopy Growth (CGC), and Up Fintech Holding (TIGR).

Market analysts remain cautiously optimistic about the summer outlook. “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,” said Ned Davis Research chief U.S. strategist Ed Clissold. “I think as we move through the second quarter into the third quarter, there’s still some good momentum in the market.”

Sector Performance and Market Breadth

The information technology sector has been the standout performer in May, jumping around 11% and on track to record 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. Nvidia (NVDA), Micron (MU), and Broadcom (AVGO) were also among the top performers.

As investors look ahead to June, they’ll be closely watching for resolution on trade policy issues and further signals about the health of the U.S. economy, with particular attention to inflation data and the Federal Reserve’s response.