The S&P 500 ended Friday nearly flat, inching down 0.01% to 5,911.69. The Dow Jones Industrial Average slid 0.32% to 19,113.77, while the Nasdaq Composite added 54.34 points, or 0.13%, to finish at 42,270.07. Despite the minor fluctuations on the last trading day, May was a standout month.
The S&P 500 added 6.2%, marking its best performance since November 2023. The tech-heavy Nasdaq surged 9.6% during the same period, bolstered by investor optimism over trade developments. The Dow gained 3.9% in May.
The market was initially rattled on Friday after President Donald Trump criticized China for allegedly violating their preliminary trade agreement. Additional concerns arose following reports that the U.S. administration plans to broaden restrictions on China’s tech sector. Treasury Secretary announced that U.S.-China trade talks faced new hurdles, increasing investor uncertainty about reaching a long-term agreement.
Despite these challenges, some sectors showed resilience. Technology stocks outperformed, with the Nasdaq rising more than 9% in May. Notably, information technology was the top-performing sector in the S&P 500, surging over 10% for the month.
Conversely, the health care sector struggled, pacing for a 5.8% monthly decline.
Trade concerns impact market close
Stocks like plunged after announcing a suspension of its annual forecast and the departure of CEO Andrew Witty.
Regeneron shares also saw a significant drop following mixed results in late-stage trials for a respiratory drug developed with Sanofi. Throughout Friday, stocks saw various levels of movement. The Dow dropped 309.57 points in midday trading due to renewed trade tensions with China.
Smaller companies also underperformed, with the Russell 2000 slipping 0.8%, lagging behind the broader market indices. Consumer sentiment showed a slight improvement in May, according to the University of Michigan survey, which indicated that consumers were less pessimistic about the economic outlook and feared inflation less after a temporary reprieve in trade hostilities between the U.S. and China. Tech giant Nvidia saw its stock hit by a trend of investor skepticism post-earnings.
Despite strong revenue growth from its data center business, Nvidia’s stock opened higher but closed below its initial level, marking a consecutive pattern of fading initial earnings moves. Some retailers saw notable activity as well. Shares of Ulta Beauty soared nearly 13% to a 52-week high after the company raised its forecast and reported strong quarterly results, driven by lower inventory losses and new product launches.
In contrast, Gap’s stock plunged 20% after the company’s cloudy sales outlook for the current quarter overshadowed positive earnings results. The PCE price index for April came in slightly below expectations at 2.1% on an annual basis, reflecting moderated inflation concerns. As May concluded, the stock market showcased a blend of optimism driven by sector-specific performances and ongoing anxieties relating to trade policies and macroeconomic conditions.