Overview

• S&P 500 rose about 6.2% and the Nasdaq Composite surged 9.6% in May, marking their strongest monthly gains since November 2023.
• A U.S. trade court’s block on several of President Trump’s tariffs spurred relief rallies, but an appeals court’s stay has kept higher duties in effect.
• Retailers such as Gap warned of up to $300 million in additional import costs this year while Ulta Beauty beat forecasts and raised its guidance.
• Investors are poised for June’s employment report and Nike’s fiscal fourth-quarter earnings to reveal how elevated duties are squeezing growth.
• Veteran hedge fund manager Doug Kass cautions that sticky inflation, sluggish consumer spending and persistent trade tensions could leave markets more vulnerable.