Dow Jones fell on Friday morning. The wider S&P 500 fell 0.2% and Nasdaq Composite, of high technology, fell 0.4%
Wall Street shares fell this Friday after Donald Trump said China “totally violated” its trade agreement with the United States, in the one who is seen as another Abano to markets after a week of developer in tariff agreements.
Dow Jones fell on Friday morning. The wider S&P 500 fell 0.2% and the Nasdaq Composite, of high technology, fell 0.4%.
“The bad news is that China, perhaps not surprisingly for some, totally violated the deal with the US,” the US president on social networks on Friday morning. “There is the fact that you are Mr. Friendly!”
Although the actions went down on Friday morning, the global market reaction was relatively weak. This, because Wall Street has begun to believe that if Trump threatens trade war will eventually retreat. This is what has been called ‘Taco’ trade – or ‘Trump Always Chickens Out’.
The US president’s coup against China arrives at the end of a week when the trade war returned to the center of attention. The actions received an impetus this week after the International Trade Court (CIT) on Wednesday, blocked most of Trump’s fares for legal reasons, but this recovery lost strength when traders began to think that the White House would resort aggressively and follow another legal strategy.
A Federal Court of Appeals suspended CIT’s decision on Thursday to block Trump’s tariffs, leaving the president’s huge tariff agenda in a limbo as the courts deliberate on their legality.
“The impressive commercial fiasco of becoming head and hallucinating will not be resolved quickly,” said Greg Valiere, a chief US policy strategist at AGF Investments, in a note. “It will probably stop the Supreme Court – and even that may not resolve the issue.”
On Friday, investors also digested new data that showed that the federal reserve’s favorite inflation indicator covered a little more than economists expected, but also revealed a significant drop in consumer spending.
Trump rekindled the trade war last week, which caused uncertainty in the markets after Wall Street began to turn the page of concerns with tariffs. The S&P 500 has been constantly rising after a fall in early April, instigated by the president’s twists on “reciprocal” tariffs.
Despite recent fluctuations, investors who sold shares in early May lost a historically strong month for markets. The reference index has risen more than 6% this month and has been on its way to its best month since 2023 and the best performance in May since 1990.
“Although the stock market has staged a decisive recovery since April minimums, there is still a lot of uncertainty about tariffs, especially due to the legal battle that is forming about ‘Liberation Day’ tariffs,” says Clark Bellin, Bellwether Wealth’s president and director of investment.
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One year trend, with the percentage variation of the previous closure value
Last update: May 30, 2025 at 17:54 (Lisbon)
The dollar valued this Friday. The US dollar index, which measures the strength of the dollar compared to six important foreign currencies, is on its way to end the month slightly high. This would put an end to four months of dollar breaks.
“We expect episodes of volatility in the market as investors continue to face a number of market risks, economic and geopolitics,” says Ulrike Hoffmann-Burchardi, a global global stocks from Global Wealth Management, in a note released on Thursday.
The S&P 500 reference index rose about 0.5% this year.
