US: Stocks mixed as China trade tensions fuel unease

[NEW YORK] Wall Street stocks saw a mixed end to the day on Friday (May 30), as trade tensions between the United States and China heated up with President Donald Trump accusing Beijing of violating a tariff de-escalation deal.

The Dow Jones Industrial Average edged up 0.1 per cent to 42,270.07, but the broad-based S&P 500 Index was flat at 5,911.69.

The tech-focused Nasdaq Composite Index slipped 0.3 per cent to 19,113.77.

“If it weren’t for the trade war, the market would be feeling pretty good,” said Tom Cahill of Ventura Wealth Management.

“Inflation is definitely moving in the right direction,” he added, referencing an inflation gauge that cooled more than expected last month.

The Federal Reserve’s preferred inflation measure – the personal consumption expenditures price index – rose 2.1 per cent from a year ago, down from the figure in March.

But investors remained nervous as Trump took aim at China early Friday, writing on his Truth Social platform that Beijing “totally violated its agreement with us.”

Washington and Beijing had agreed to mutually lower tariffs on each other’s imports this month, bringing levels down from triple digits for 90 days.

Trump’s remarks, however, reignited fears that the president could return to a more confrontational approach towards the world’s second biggest economy.

Jose Torres, senior economist at Interactive Brokers, said in a note: “Wall Street is worried that this Friday morning’s remarks are just a warmup of what’s to come.” AFP