S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs

Barry Adams
30 May, 2025
New York City

Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China. 

Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts. 

The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June. 

Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty. 

The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement. 

 

U.S. Stock Movers 

Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations. 

The specialty apparel retailer reported better-than-expected fiscal first  quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million. 

Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion. 

The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications. 

Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales. 

Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.

Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.

Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.