FX.co ★ US Stocks Lower on Friday but on Track to End May Higher

On Friday, US stocks experienced a downturn with the three major indices each declining by approximately 0.3% as trade tensions with China intensified. President Trump accused China, via a social media platform, of "totally violating" its agreement with the United States, although he did not provide further specifics. Earlier, Treasury Secretary Bessent indicated that trade discussions with China had encountered "a bit of a stall." Concurrently, investors were assessing new economic data. Both headline and core indices rose by 0.1% month-over-month, meeting expectations, although they showed a slowdown on an annual basis. Personal spending growth also declined to 0.2%, aligning with forecasts. These figures reinforced the anticipation that the Federal Reserve might have the capacity to reduce interest rates later this year. The health, energy, and materials sectors performed poorly, whereas consumer staples managed to stay positive. Regardless, stocks are on track to conclude May with significant gains after an unsettled April. The S&P 500 has increased by more than 6%, the Nasdaq has surged 10%, and the Dow has gained about 4%.