Overview

• The S&P 500 closed May with its best month since November 2023 and recorded its first winning month in four despite a flat finish on Friday.
• Investors stayed wary over trade-policy uncertainty after Trump accused China of breaking a tariff-pause agreement and legal disputes left duties in effect.
• Treasury yields eased after April’s Fed-preferred inflation gauge came in slightly below forecasts, and consumer sentiment in May surprised to the upside following temporary tariff pauses.
• Gap Inc. shares plunged over 20% after the retailer warned that tariffs could add up to $300 million in costs this fiscal year despite plans to offset some of the impact.
• Ulta Beauty stock jumped nearly 12% on stronger-than-expected sales and profit, while Nvidia pared gains despite topping profit forecasts for the quarter.