Tariffs, Nvidia and 2 more things that defined the stock market this week

Published: Saturday, May 31, 2025 at 4:21 pm

Stock Market Wobbles Amidst Tariff Talk and Tech Titans

The stock market navigated a volatile week, ultimately ending with mixed results, as investors grappled with renewed trade tensions and key earnings reports. President Trump's Friday accusation that China violated the preliminary trade agreement sent the S&P 500 into a flat close, despite the index showing gains for the week and month of May.

Tariffs were a major market mover. The week's performance was significantly influenced by the back-and-forth on trade. A Bloomberg report about potential restrictions on Chinese tech companies initially dampened spirits, but Trump's subsequent comments about talking to Chinese President Xi Jinping helped stocks recover some losses. The S&P 500 saw a nearly 2% gain during the holiday-shortened week, boosted by a Tuesday rally after the delay of tariffs on the European Union. The index jumped over 6% in May, its best monthly performance since November 2023, defying the "sell in May" adage.

Tech earnings were a key focus. Nvidia, a star performer, delivered better-than-expected results and guidance, leading to a price target increase. However, the stock gave back some gains on Friday. Salesforce also reported strong quarterly results, but the stock faced headwinds, with some analysts questioning the CEO's focus on AI. Costco, on the other hand, delivered a "perfect quarter," according to Jim Cramer, with impressive margin improvement and same-store sales growth.

The Federal Reserve also played a role. The Fed's preferred inflation gauge came in cooler than expected for April, suggesting easing price pressures. However, the minutes from the May meeting revealed concerns about potential inflation risks stemming from tariffs. Fed Chairman Jerome Powell met with President Trump, who is known to want interest rate cuts.

BNN's Perspective: The market's reaction to the tariff talk highlights the ongoing uncertainty surrounding trade policy. While the strong performance in May is encouraging, the volatility underscores the need for investors to remain vigilant and adaptable to changing economic conditions. The focus on tech earnings and the Fed's stance on inflation will continue to be crucial factors in the coming weeks.

Keywords: stock market, tariffs, Nvidia, Salesforce, Costco, S&P 500, earnings, Federal Reserve, inflation, trade war, China, Donald Trump, Jerome Powell, Broadcom, GE Vernova, Jim Cramer, investing, market analysis, economic outlook.

Full Story