PULSE POINTS:
❓What Happened: The S&P 500 recorded its best monthly numbers since 2023—and its best gains for the month of May since 1990.
👥 Who’s Involved: The S&P 500, Nasdaq, Dow Jones Industrial Average, President Donald J. Trump, and China.
📍 Where & When: U.S. stock markets, May 2025.
⚠️ Impact: All three major U.S. stock indices saw strong gains in May, with the S&P 500 and Nasdaq achieving their best months since November 2023, amid ongoing U.S.-China trade tensions.
IN FULL:
The S&P 500 capped off May with its strongest monthly performance in over a year and a half, gaining six percent across the month, despite closing Friday nearly flat. The Nasdaq and S&P 500 both posted their best monthly results since November 2023. Moreover, it saw the best gains for the month of May, specifically, since 1990.
The Dow Jones Industrial Average rose slightly by 0.13 percent on Friday, while the Nasdaq composite slipped just 0.3 percent.
Notably, the market’s rebound in May followed a challenging April, during which investor sentiment was rattled by media clamoring over President Donald J. Trump’s imposition of steep tariffs on China. The tariffs are part of ongoing trade negotiations with Beijing and other foreign trade partners.
Earlier on Friday, President Trump accused China of going back on a “fast deal” he claimed to have made, but remained hopeful about eventually securing an agreement. Tensions with China have persisted, but Trump’s optimism suggests a potential resolution might still be on the horizon.
The market gains follow data released by the Department of Commerce, which shows inflation continuing to cool and record revenue collected from President Trump’s tariffs.