FX.co ★ Wall Street Slips as Trade Worries Hit Tech

Despite a strong monthly rally, US stocks continued to decline in the afternoon session, driven down by tech shares amid renewed US-China trade tensions. The S&P 500 decreased by 1%, the Nasdaq 100 dropped 1.5%, and the Dow lost over 200 points. President Trump accused China of "totally violating" its trade agreement with the US, intensifying fears of a prolonged trade dispute. Additionally, legal uncertainties re-emerged after a court temporarily blocked Trump's tariffs, although an appeals court later issued a stay. The tech sector, particularly chipmakers such as Nvidia, AMD, Micron, and Intel, saw declines of more than 2%. However, there was some relief from the Federal Reserve’s preferred inflation measure, which indicated easing price pressures. On the earnings front, Costco rose by 3.6% and Ulta Beauty surged by 11.5% on strong performance results, whereas Gap plummeted nearly 20% following weak sales guidance. Despite Friday's retreat, May concluded as a robust month overall, with the S&P 500 advancing over 5%, the Nasdaq climbing almost 10%, and the Dow increasing by 3%.