Wall Street Slumps As Trump Reignites China Trade Tensions, Nvidia Wipes Out Earnings Rally: What's Driving Markets Friday?
A strong May for U.S. equities is closing on a sour note, after President Donald Trump accused China of "totally" breaching a tariff agreement, raising new fears over trade disputes.
The White House is reportedly planning broader tech sanctions against China, with a proposed rule targeting companies majority-owned by already-sanctioned firms. According to people familiar with the matter, these firms would face new licensing conditions from the U.S. government, heightening pressure on Beijing.
Friday’s economic reports offered mixed signals. Although inflation showed signs of cooling, consumers pulled back on monthly spending, signaling weakening demand. Personal spending growth slowed to 0.2% in April, a sharp deceleration from 0.7% in March.
Meanwhile, Main Street is sending warning signals, as consumer sentiment remained deeply depressed, holding at a three-year low, according to the University of Michigan's final May reading. Moreover, year-ahead inflation expectations jumped to 4.5%, the highest since 1981.
Nvidia Corp. (NASDAQ:NVDA) was the worst performer among the mega-cap names, sliding 4% and fully erasing the gains it had notched following Wednesday’s stronger-than-expected earnings release.
The broader market mirrored the decline. The S&P 500 fell 1% to 5,858 points, while the tech-heavy Nasdaq 100 tumbled 1.3% to 21,100—both marking their lowest levels of the week.
Only defensive sectors such as consumer staples and utilities managed to stay above water, as investors rotated into perceived safe havens amid geopolitical and economic unease.
Crude oil prices declined 1.5% to $60 a barrel amid speculation that OPEC+ could consider a production hike larger than the 410,000 barrels-per-day increase already planned. The group is set to meet Saturday.
Gold, often seen as a haven during market stress, failed to gain traction and dropped 0.9% to trade below $3,300 per ounce.
Cryptocurrency markets also faced headwinds. Bitcoin (CRYPTO: BTC) sank below $105,000, hitting its lowest level since May 20.
Friday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Dow Jones | 42,015.10 | -0.5% |
| S&P 500 | 5,858.41 | -1.0% |
| Russell 2000 | 2,054.65 | -1.0% |
| Nasdaq 100 | 21,105.32 | -1.3% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 1% to $584.56.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) eased 0.5% to $420.37.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 1.3% to $513.31.
- The iShares Russell 2000 ETF (NYSE:IWM) slipped 1% to $204.09.
- The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) outperformed, up 0.7%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.6%.
Friday’s Stock Movers
Stocks reacting to earnings reports included:
- Costco Wholesale Corporation (NASDAQ:COST) up 3.60%
- Dell Technologies Inc. (NYSE:DELL) down 3.33%
- Zscaler, Inc. (NASDAQ:ZS) up 8.24%
- Ulta Beauty, Inc. (NASDAQ:ULTA) up 11.13%
- NetApp, Inc. (NASDAQ:NTAP) down 0.57%
- The Cooper Companies, Inc. (NASDAQ:COO) down 14.60%
- The Gap, Inc. (NYSE:GPS) down 19.18%
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