FX.co ★ US Stocks Bounce Back

On Friday, US stocks cut back on the majority of their earlier downturns during late trading, following comments from Donald Trump regarding anticipated discussions with Xi Jinping. This came after allegations surfaced of China violating a trade agreement. The S&P 500 managed to recover much of its initial 1.2% decline, the Nasdaq 100 saw a decrease of 0.3%, while the Dow Jones added 100 points. President Trump asserted that China had "totally violated" the trade agreement with the United States, amplifying concerns about a potentially extended trade conflict. The technology sector, particularly chipmakers, experienced notable declines with Nvidia, AMD, Micron, and Intel each dropping more than 1.5%. In contrast, the Federal Reserve’s preferred measure of inflation indicated easing price pressures, providing some reassurance to investors. On the corporate earnings side, Costco saw a 4.1% rise and Ulta Beauty surged by 11.5% due to strong performance reports, whereas Gap faced a sharp nearly 20% fall following weak sales forecasts. Overall, the S&P 500 has grown over 5% this month, and the Nasdaq has surged 9.5%, both heading for their strongest month since November 2023, and the Dow has increased by 3%.