US Stock Market Today: S&P 500 and Nasdaq Slip as US-China Tensions Flare Up, Even as Inflation Cools- The stock market today showed mixed signals as Wall Street reacted to fresh concerns over US-China trade tensions while digesting key inflation data. The S&P 500 dropped 0.1%, and the Nasdaq Composite slipped around 0.3%. In contrast, the Dow Jones Industrial Average inched up by 0.1%, showing some resilience. Investors faced two competing stories: cooling inflation pressures and growing uncertainty around tariffs between the world’s two biggest economies. President Trump’s latest remarks about China “totally violating its agreement” with the US reignited trade concerns, especially as talks appear to have stalled. Meanwhile, inflation data brought a bit of relief, showing price pressures are starting to ease.

Despite trade concerns, the Dow showed resilience, while tech-heavy indexes slipped slightly amid cautious sentiment.

1. Trump’s tough talk on China renews trade war fears

2. PCE inflation data shows cooling price pressures

Investor sentiment takeaway: Easing inflation could reduce pressure on the Federal Reserve to raise interest rates again. Despite daily volatility, May is closing with solid gains across the board.

Regeneron Pharmaceuticals (REGN)

Other notable movers:

Inflation expectations

On Friday, President Trump escalated rhetoric against China, accusing Beijing of breaking its deal with the US just weeks after the two nations had agreed on a temporary tariff truce. “They’ve totally violated their agreement with us,” Trump told reporters, stoking fears of a renewed US-China trade war.

Talks between Washington and Beijing have reportedly hit a roadblock. Scott Bessent told Fox News that discussions are “a bit stalled,” suggesting only a direct call between Trump and Chinese President Xi Jinping could push things forward. The standoff isn’t just about tariffs anymore—it now includes chip restrictions and visa issues, adding layers of complexity to already tense negotiations.

Adding to the legal confusion, a US appeals court on Thursday paused a trade court decision that had blocked Trump's global tariffs. The White House now has until Monday to challenge the ruling, which could reshape how tariffs are handled going forward. While trade headlines dominated attention, the latest PCE inflation report also moved markets. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose just 0.1% month-over-month in April. That’s the same rate as in March and exactly what economists had forecast.

On a yearly basis, core PCE inflation came in at 2.5%, down from March’s 2.7%, and matched analyst expectations. Meanwhile, headline PCE rose 2.1% year-over-year, slightly below the 2.2% projection. These numbers suggest that inflation is easing, though still above the Fed’s 2% target.

The market took this as a positive sign, as it could reduce pressure on the Fed to hike interest rates further. Still, uncertainty from trade tensions has kept investors cautious.

Despite the choppy session, US stocks remain on pace to close May with solid gains. Here’s where the major indexes stand heading into the final trading day of the month: Even with the ups and downs triggered by trade headlines and inflation reports, investors are looking at a winning week and month. The strong performance from tech giants has helped power the Nasdaq's rally, reflecting renewed optimism in growth stocks. In individual stock news, Regeneron Pharmaceuticals (REGN) took a hard hit on Friday. Shares dropped over 17% after the biotech firm announced mixed trial results for its new drug targeting smoker's lung disease.

While the drug failed to show strong results in a late-stage trial, it did perform better in an earlier-stage study. Still, investors were disappointed by the setback, leading to a sharp selloff in the stock during early trading.

According to the University of Michigan's consumer sentiment survey, confidence among US consumers stabilized in May. The final reading for the month showed sentiment holding steady compared to April, breaking a four-month decline streak.

One factor that helped? A temporary pause on certain China tariffs, which boosted optimism about the economy’s direction. Joanne Hsu, director of consumer surveys at the university, explained: “Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement.”

• Short-run (1-year) expectations rose slightly to 6.6% from 6.5%

While this data shows some relief, Hsu noted that consumers remain concerned. “These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May,” she said. As May wraps up, investors will likely stay focused on US-China developments, especially with Monday’s court deadline looming for the White House on tariffs. At the same time, attention will turn to whether the Fed sees enough progress on inflation to hold off on further rate hikes.

With solid month-end gains across major indexes and cooling inflation numbers, markets have reasons to stay optimistic—as long as geopolitical tensions don’t boil over again.

The stock market today reflected a tug-of-war between easing inflation and renewed global trade worries. While Friday was mixed, the broader month paints a more hopeful picture for US equities.

Rising US-China tensions and renewed tariff fears made the market slip despite cooling inflation data.

The PCE index showed inflation is easing, giving hope the Fed might avoid more rate hikes.