U.S. stocks closed a volatile but strong month of May with mixed results. The S&P 500 surged to its best monthly performance since 1990, finishing nearly flat for the day while boasting a 6% gain. The Dow Jones Industrial Average climbed by 0.13%, and the Nasdaq Composite index dipped slightly, despite earlier drops exceeding 1.6%. The tech-heavy Nasdaq saw gains of over 10% for the month, fueled by strength in technology shares. 74% of sectors saw gains in May. Meanwhile, the Trump administration’s trade restrictions on China and renewed tensions contributed to uncertainty in the market. 50% of sectors saw gains this month. Friday’s subdued finish followed reports of expanded U.S. tech restrictions on China and renewed trade tensions. Bloomberg reported that the Trump administration plans to tighten export rules targeting subsidiaries of firms already on the Entity List, adding to investor unease. 19% of S&P companies had their earnings beat expectations this month. Former President Trump accused China of violating its existing trade deal on social media earlier in the day. Meanwhile, Treasury Secretary Scott Bessent stated that talks with China are “stalled” and suggested a Trump-Xi call is needed to advance negotiations. However, cooling inflation helped investors find optimism, as the Fed’s preferred inflation gauge—the core Personal Consumption Expenditures index—rose in line with forecasts in April. The only sector to see losses was healthcare. 8% of S&P companies saw their earnings be revised down this month. The markets head into June with gains intact, but trade policy remains a significant risk.