By Alex Financials

​Market Volatility Returns Amid Trade Tensions and Tech Sector Weakness​

On Friday, May 30, 2025, U.S. stock markets experienced renewed volatility, driven by escalating U.S.-China trade tensions, a sell-off in major technology stocks, and investor concerns over the Federal Reserve’s interest rate outlook.​

Trade Tensions Resurface

Markets were rattled after former President Donald Trump accused China of violating a recently agreed-upon 90-day tariff truce. The accusation centered on halted shipments of critical minerals, a concern echoed by U.S. Trade Representative Jamieson Greer. Treasury Secretary Scott Bessent confirmed that trade talks have “stalled,” suggesting that intervention from Trump and Chinese President Xi Jinping may be necessary to resume negotiations. ​

In response, Wall Street’s main indexes opened lower, with the S&P 500, Nasdaq, and Dow all declining. ​

Tech Sector Leads Market Decline

The technology sector, particularly the so-called “Magnificent Seven” stocks, led the market downturn. Nvidia ($NVDA) fell approximately 3% following the Biden administration’s announcement of updated export rules aimed at controlling the flow of artificial intelligence technology to adversaries like China. Tesla ($TSLA) retreated around 1%, while Meta ($META) and Apple ($AAPL) both shed more than 2%. Microsoft ($MSFT) and Alphabet ($GOOGL) posted smaller declines. ​

The sell-off was exacerbated by a hotter-than-expected jobs report, which dashed hopes for multiple Federal Reserve rate cuts this year. Investors now anticipate any easing to be delayed until the fall at the earliest.​

Federal Reserve Signals Fewer Rate Cuts

The Federal Reserve lowered interest rates by 25 basis points to a range of 4.25%-4.5% at its final meeting of the year. However, updated projections indicate that policymakers now expect only two more cuts in 2025, down from the four anticipated just three months ago. The Fed also revised its core inflation forecast for next year upward to 2.5%, suggesting a more cautious approach to monetary easing. ​

This shift in expectations contributed to the market’s decline, as investors adjusted their outlooks for economic growth and corporate earnings.​

Corporate Earnings Highlights

Costco ($COST): The wholesale retailer reported fiscal Q3 revenue of $63.21 billion, slightly surpassing analyst expectations. Comparable store sales grew by 5.7%, aided by strategies to mitigate tariff impacts. ​

Dell Technologies ($DELL): The company reported strong Q1 FY2026 results, driven by unprecedented demand for AI servers. Orders totaled $12.1 billion, pushing revenue up 5% to $23.38 billion, though earnings per share fell slightly below estimates.

UiPath ($PATH): Shares plummeted nearly 33% after the AI software provider announced the resignation of CEO Rob Enslin and provided sales guidance that fell significantly below Wall Street estimates.

Market Summary

As of the latest trading session:​

• S&P 500: Down 1.4 points to 5,630.13

• Dow Jones Industrial Average: Up 226.36 points to 41,620.14

• Nasdaq Composite: Down 101.57 points to 17,582.41​