U.S. equities finished marginally changed on Friday, capping a robust May performance despite a late‑week flare‑up in U.S.‑China trade rhetoric. The S&P 500 ticked down 0.01% to 5,911.69, the Nasdaq Composite eased 0.32% to 19,113.77, and the Dow Jones Industrial Average added 54.34 points (0.13%) to 42,270.07.

May's Impressive Rally Overshadows Trade Noise

• Monthly Returns: The S&P 500 jumped 6.2% in May—the best monthly gain since November 2023—while the Nasdaq gained 9.6% and the Dow climbed 3.9%.

• Weekly Recap: For the week ending Friday, the S&P gained 1.9%, the Nasdaq 2%, and the Dow 1.6%.

• Trade Tensions Erupt: President Trump accused China of violating their preliminary tariff deal late Thursday, but markets largely shrugged off the remarks given recent progress, including a U.S.-U.K. trade agreement that raised hopes for broader tariff resolutions.

Despite renewed fears, investors focused on the big picture: solid corporate earnings, stable economic readings, and easing bond yields that supported risk appetite throughout May.

What's Next: Key Drivers for This Week

1. U.S. Jobs Report (Friday)

All eyes are on Friday's Nonfarm Payrolls for May, with economists penciling in approximately 130,000 jobs added—down from April's 177,000.

• Why It Matters: A beat could reinforce the case for a prolonged Fed pause, while a miss risks fueling recession concerns.

• Actionable Insight: Keep the economic calendar handy to mark the release and avoid surprises. economics-calendar

2. Fiscal Policy Developments in Washington

Washington remains gridlocked on several fronts—debt‑ceiling negotiations, infrastructure talks, and the looming push for tax revisions. Any progress, or further stalemate, could trigger swift shifts in bond yields and equity sentiment.

3. Ongoing Trade Headlines

While the U.S.-China spat dominated headlines, watch for:

• New Tariff Announcements: Potential 10% minimum tariffs and further sector‑specific duties if negotiations falter.

• Diplomatic Engagements: Any high‑level phone calls between Trump and Xi Jinping or updated statements from the U.S. Trade Representative's office.

Sector Spotlight: Monitoring Market Leaders

Technology and consumer discretionary names led May's rally, but breadth remains narrow. As equity bulls look to extend gains, tracking liquidity and momentum can offer early signals:

• Top Volume and Price Movers: See which stocks dominate trading in real time with the Market - Most Active API. market-most-active

• Sector Rotation Watch: Keep tabs on cyclicals (e.g., materials, industrials) versus defensives (utilities, staples) as bond yields shift.

Takeaways for Investors

1. Stay Alert on Payrolls: A weaker jobs print could send yields down and spur a late‑week equity rally.

2. Watch Fiscal Negotiations: Even incremental progress on spending bills or the debt ceiling can move markets.

3. Use Liquidity Indicators: Refer to the Market - Most Active API to gauge whether large institutional flows are rotating into new sectors.

With equities near all‑time highs after a banner May, “the hard data needs to hold,” as Wells Fargo's Scott Wren noted. By monitoring the economic calendar and real‑time volume leaders, investors can better navigate potential volatility in the coming week.