{"id":49543,"date":"2025-05-30T10:01:59","date_gmt":"2025-05-30T15:01:59","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/"},"modified":"2025-05-30T10:01:59","modified_gmt":"2025-05-30T15:01:59","slug":"stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/","title":{"rendered":"Stock Market Today: Markets Retreat as Trade Tensions Resurface and Gap Disappoints"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Major_Indexes_Pull_Back_in_Friday_Mid-Day_Trading\" >Major Indexes Pull Back in Friday Mid-Day Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Trade_Tensions_Resurface_as_Legal_Battle_Continues\" >Trade Tensions Resurface as Legal Battle Continues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Retailers_Struggle_as_Gap_Warns_of_Tariff_Impact\" >Retailers Struggle as Gap Warns of Tariff Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Tech_Sector_Mixed_as_Nvidia_Momentum_Continues\" >Tech Sector Mixed as Nvidia Momentum Continues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Economic_Data_and_Upcoming_Events\" >Economic Data and Upcoming Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-markets-retreat-as-trade-tensions-resurface-and-gap-disappoints\/49543\/#Looking_Ahead_Market_Outlook\" >Looking Ahead: Market Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Pull_Back_in_Friday_Mid-Day_Trading\"><\/span>Major Indexes Pull Back in Friday Mid-Day Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>U.S. markets are trading lower Friday as investors navigate renewed trade tensions and digest disappointing earnings from major retailers. As of mid-day, the major indexes have given back some of their recent gains, with the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> down 0.1%, the Nasdaq Composite declining 0.1%, and the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average slipping 0.04%.<\/p>\n<p>Today&#8217;s pullback comes after a strong month for equities, with the S&#038;P 500 up more than 6% in May, the Nasdaq surging 10%, and the Dow gaining approximately 4%. Despite today&#8217;s retreat, the major indexes are still on track to close the week with solid gains, with the S&#038;P 500 up about 2% for the week.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trade_Tensions_Resurface_as_Legal_Battle_Continues\"><\/span>Trade Tensions Resurface as Legal Battle Continues<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market volatility has increased following President Donald Trump&#8217;s claim that China breached its preliminary trade deal, raising concerns over a potential prolonged trade conflict.<cscitation citation_id=\"task_3__1\"><\/cscitation> This comes amid an ongoing legal battle over Trump&#8217;s &#8220;reciprocal&#8221; tariffs.<\/p>\n<p>The U.S. Court of International Trade ruled on Wednesday that Trump had exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act. However, a federal appeals court temporarily reinstated the levies on Thursday, allowing tariff collection to continue while the legal process unfolds.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>&#8220;In general, markets don&#8217;t like uncertainty, because it makes forecasting more difficult,&#8221; said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. &#8220;We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility.&#8221;<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retailers_Struggle_as_Gap_Warns_of_Tariff_Impact\"><\/span>Retailers Struggle as Gap Warns of Tariff Impact<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>The Gap, Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GAP\">GAP<\/a>)<\/b> shares plunged 13.7% in mid-day trading after the retailer warned that tariffs could result in a gross estimated incremental cost of approximately $250 million to $300 million. This warning came alongside the company&#8217;s first-quarter financial results.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>Other retailers facing pressure include <b>The Cooper Companies, Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=COO\">COO<\/a>)<\/b>, which declined 10% following its second-quarter results.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Sector_Mixed_as_Nvidia_Momentum_Continues\"><\/span>Tech Sector Mixed as Nvidia Momentum Continues<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The technology sector is showing mixed performance today, with <b>Nvidia Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>)<\/b> slipping 1.65% despite its impressive earnings report released earlier this week. The semiconductor giant announced a 69% year-over-year revenue increase, reaching $44.1 billion, surpassing Wall Street expectations.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>Nvidia&#8217;s data center business saw revenues of $39.1 billion, a 73% increase from the previous year, underscoring strong demand for its AI chips. Despite today&#8217;s pullback, the stock has been a major contributor to the tech sector&#8217;s strong performance in May.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>Meanwhile, <b>Elastic N.V. (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=ESTC\">ESTC<\/a>)<\/b> shares dropped 9.7% despite beating earnings expectations. The company reported adjusted earnings of 47 cents per share, above market estimates of 37 cents per share, with sales of $388.43 million versus expectations of $380.36 million.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_and_Upcoming_Events\"><\/span>Economic Data and Upcoming Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors are digesting the latest Personal Consumption Expenditures (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PCE\">PCE<\/a>) index data, the Federal Reserve&#8217;s preferred inflation gauge, which aligned with expectations.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<p>The Department of Labor reported that initial jobless claims increased by 14,000 to 240,000 for the week ended May 24, higher than the previous week&#8217;s revised level of 226,000. Continuing claims rose to 1,919,000, the highest level since November 2021.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>Additionally, the second estimate of first-quarter GDP showed a decrease at an annual rate of 0.2%, slightly better than the previously reported 0.3% decline.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Looking_Ahead_Market_Outlook\"><\/span>Looking Ahead: Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we approach the end of May, market analysts remain cautiously optimistic about the summer outlook despite current trade tensions and inflation concerns.<\/p>\n<p>&#8220;I think as we head into summer that momentum can continue, [but] then that&#8217;s where the hard data that may catch up to the weaker, soft data, could come into play,&#8221; Ned Davis Research chief U.S. strategist Ed Clissold told CNBC. &#8220;I think as we move through the second quarter into the third quarter, there&#8217;s still some good momentum in the market.&#8221;<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Investors will be closely monitoring developments in the ongoing trade dispute and upcoming economic data releases for signs of how the economy is responding to current policy uncertainties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Pull Back in Friday Mid-Day Trading U.S. markets are trading lower Friday as investors navigate renewed trade tensions 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