Wall Street: Mixed Signals at Week’s Close Amid New Tariff Tensions

The S&P 500 closed with a marginal decline in the last session of the week, following a month of strong gains. This shift came after U.S. President Donald Trump accused China of violating the preliminary trade agreement, reigniting fears that the U.S. might enter into an extended trade war involving high tariffs. Specifically, Trump mentioned on social media that China had ‘violated’ the current trade deal with the U.S., following Treasury Secretary Scott Bessent’s statement that U.S.-China trade negotiations regarding tariffs had ‘stalled.’ Consequently, the Dow Jones rose by 0.13%, the S&P 500 fell by 0.01%, and the Nasdaq dropped by 0.32% on Wall Street. The Trump administration’s controversial plan for extensive and high tariffs faces legal hurdles as investors question whether and when a long-term agreement between the U.S. and China can be reached. Legal concerns peaked when the Court of International Trade suspended most of Trump’s tariffs on Wednesday evening (May 28, 2025). However, an appeals court granted a stay yesterday, allowing the tariffs to remain in effect until next week. The administration is reportedly considering using a provision from the Trade Act of 1974 to impose up to 15% tariffs for 150 days, according to the Wall Street Journal. The legal battle over tariffs adds new uncertainty to an already unstable market, with investors facing macroeconomic concerns tied to tariffs and fearing that disruptions in U.S. trade policy could trigger a recession.