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Dow Jones Drops Over 100 Points as US-China Trade Tensions Resurface
US stock indices witnessed a significant decline at the close of trading on Friday, May 30, 2025, affected by renewed trade tensions between the United States and China.
Major Market Indicators:
Dow Jones Industrial Average: fell more than 100 points, or 0.3%, to close above 42,000.
S&P 500: fell 0.7%.
Nasdaq Composite: fell 1.3%.
This decline comes after statements by US President Donald Trump, in which he accused China of violating the preliminary trade agreement between the two countries, raising investor concerns about the potential for an escalation in the trade dispute. The Treasury Secretary also indicated that trade talks between the two countries are "a little bit stuck."
Legal Developments:
In a legal development, the International Court of Trade has suspended most of the tariffs imposed by the Trump administration, but an appeals court has granted a temporary stay allowing these tariffs to continue until next week. The US administration is considering using a provision of the Trade Act of 1974 to impose tariffs of up to 15% for 150 days.
Market Performance in May:
Despite the recent decline, US indices posted strong gains during May:
S&P 500: Up more than 5%.
Nasdaq: Up 9.5%.
Dow Jones: Up 3%.
These gains came after the announcement of a US-UK trade agreement earlier in the month, which boosted investor hopes for similar agreements with other countries.
Economic Indicators:
The US Department of Commerce reported that the annual inflation rate, as measured by the personal consumption expenditures price index, was 2.1% in April, down slightly from the previous month. The core inflation rate, which excludes food and energy, was 2.5%.
