CNBC Business News Update Market Open: Stocks Lower, President Trump's Post Rattles Investors, Inflation Lower In April 5/30/25
May 30, 2025
Uncertainty hangs over Wall Street as trade war fears contribute to a decline in the stock market. Despite this, good news emerges in the form of lower inflation rates. Companies like Costco and Ulta Beauty stand out with impressive quarterly results, showcasing resilience in a turbulent landscape. The contrasting fortunes between struggling industries and thriving businesses keep investors on their toes.
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Trump's Trade Rattle Shakes Markets
- President Trump's post about China escalates trade war fears, rattling markets and dragging down stocks, led by Nike and tech shares.
- This reaction shows how political statements can immediately impact market sentiment despite differing official tones from Treasury officials.
Inflation Drop Overlooked Amid Tariffs
- Inflation fell to 2.1% in April, lower than expected, yet markets seem to ignore this positive data in light of trade tensions.
- High tariff rates, now at 21%, contrast sharply with the 2.5% rate when Trump took office, indicating a more punitive trade environment.
Tariffs Drive Retail Cost Concerns
- Retailers face rising import costs due to tariffs, with Walmart warning of price hikes this summer.
- Tariffs pushing costs higher are leading many retailers to lower earnings outlooks despite efforts to shift sourcing away from China.