On May 31, 2025, major U.S. stock indices declined after former President Donald Trump accused China of violating a key tariff agreement. The Dow Jones Industrial Average dropped 49.27 points, the S&P 500 slipped 27.12 points, and the Nasdaq Composite fell by 155.75 points. The tension follows a Geneva-based negotiation agreement between the U.S. and China, which aimed to reduce tariffs over a 90-day period. Trump’s post on Truth Social rekindled uncertainty around trade policy. Despite the drop, the Nasdaq remains on track for its strongest month since November 2023.
On May 31, 2025, U.S. stock markets dipped after former President Donald Trump accused China of violating a Geneva-based trade agreement, intensifying long-standing tariff tensions between the two nations. Trump made the accusation via his Truth Social account, reviving concerns around U.S.-China trade policy volatility.
Wall Street Performance:
The Dow Jones Industrial Average fell 49.27 points (0.12%) to 42,166.46, the S&P 500 lost 27.12 points (0.46%) to 5,885.05, and the Nasdaq Composite dropped 155.75 points (0.81%) to 19,020.13.
The decline followed Trump’s unspecific claim that China had failed to uphold its part of a 90-day Geneva negotiation, which included agreed reductions in import duties from both sides. The U.S. was to cut tariffs from 145% to 30%, while China was to reduce its own from 125% to 10%.
Market Reactions and Sector Performance:
Tech and energy stocks led the losses. Nvidia Corporation, a leading U.S. semiconductor company headquartered in Santa Clara, California, saw its shares fall 2.4%. Regeneron Pharmaceuticals, a biotechnology firm based in Tarrytown, New York, also dropped over 18% after disappointing clinical trial results.
Meanwhile, Ulta Beauty Inc., a U.S. cosmetic retailer headquartered in Bolingbrook, Illinois, surged 15% after reporting better-than-expected earnings and raising its profit forecast.
Despite Friday’s dip, the Nasdaq is poised to log its best month since November 2023, and the S&P 500 remains set for its strongest gain since November 2024. The Dow Jones is tracking a 3.5% monthly rise.
Trade Uncertainty Rises:
The renewed trade concerns come just a day after the U.S. Court of International Trade blocked most recent tariffs imposed since January. However, a federal appeals court quickly reinstated most of those duties, adding to market unpredictability. Responses from involved parties are expected by June 9, 2025.
Investors remain cautious amid unclear trade direction, despite encouraging data on U.S. consumer spending and inflation. The Federal Reserve continues to monitor PCE price metrics, with traders still expecting an interest rate cut in September.
Wall Street’s reaction underscores how sensitive global markets remain to trade headlines and geopolitical developments, even years after the initial rounds of U.S.-China tariffs.
