Markets Weather Volatility as Trump Rhetoric and U.S.-China Trade Tensions Fluctuate

The S&P 500 concluded a tumultuous trading session with minimal change, following U.S. President Donald Trump's mixed signals on the U.S.-China trade relationship. Despite the session's instability, May marked a period of recovery, with the S&P 500 and Nasdaq recording their highest monthly percentage gains since November 2023.

Investor sentiment was tested throughout May as Trump's unpredictable trade policies posed challenges; however, a relaxed tariff stance, coupled with favorable earnings reports and moderate inflation data, assisted in reversing April's declines. Friday saw initial market drops after Trump accused China of trade agreement violations but improvements as negotiations promised potential resolutions.

Market strategists highlighted ongoing tariff news as a source of uncertainty. With mixed data, including increased consumer spending and speculation about the Federal Reserve's interest rate actions, investors face a complex environment. Notable stock activity included Ulta Beauty, whose shares climbed following a profit forecast increase.

(With inputs from agencies.)