Trump's Tariff Tensions Surge in Volatile Market Session

Wall Street's main indexes faced downward pressure on Friday following President Donald Trump's assertions that China had broken a tariff agreement. He made these claims on his Truth Social platform, further escalating tensions in the ongoing trade war, despite an otherwise positive month for equity markets.

Trump alleged that China failed to uphold an agreement to roll back tariffs on critical minerals, casting doubts on a lasting resolution between the two economic superpowers. His statement lacked details on the alleged breach but threatened tougher actions against Beijing.

Despite Trump's remarks, the day saw some positivity driven by favorable PCE data, indicating marginal growth in consumer spending. Investors remained hopeful the Federal Reserve might cut short-term borrowing costs in September, with the Nasdaq and S&P 500 poised for significant monthly gains.

(With inputs from agencies.)