Wall Street managed to edge higher on Monday despite a rough start, buoyed by energy gains and strong showings from tech giants like Nvidia and Meta. But under the surface, concern simmered as U.S. manufacturing data disappointed and fresh tariff tensions resurfaced, threatening to unsettle global supply chains and investor confidence.
The S&P 500 rose 0.4% to 5,935.94, the Dow Jones Industrial Average inched up 35 points to 42,305.48, and the tech-heavy Nasdaq jumped 0.7% to 19,242.61—continuing the rally that made May the best month for U.S. stocks since 2023.
Early losses were triggered by weak U.S. manufacturing figures. A report from the Institute for Supply Management showed worrying slowdowns, with one manufacturer warning that “ever-changing trade policies… have wreaked havoc on suppliers’ ability to react and remain profitable.” While an S&P Global report offered a slightly better picture, analysts said it masked deeper instability within U.S. industry.
Adding to the market’s jitters was renewed trade friction between Washington and Beijing. The Chinese government slammed U.S. moves to curb AI chip exports and student visas, calling them a violation of recent trade understandings. These flare-ups followed President Donald Trump’s fresh warning of “pain” for U.S. households as he seeks to bring manufacturing jobs home via tariff hikes.
In fact, Trump’s doubling of tariffs on imported steel to 50% sparked a sharp divide in market winners and losers. Domestic steelmakers surged—Nucor jumped 10.1%, and Steel Dynamics soared 10.3%—while steel-heavy sectors like autos slumped. Ford and GM both fell 3.9%.
Oil markets were one of the day’s biggest movers, with crude prices jumping more than 3% as OPEC+ producers agreed to ramp up output. The rise came despite expectations that more supply would temper prices—analysts pointed to geopolitical risks, including new Ukrainian attacks inside Russia, as a driver of volatility in energy markets.
In bond markets, Treasury yields climbed, with the 10-year yield hitting 4.44%, up from 4.01% two months ago. The rise reflects growing investor unease over U.S. fiscal policy, including tax cuts and ballooning deficits, which could pressure borrowing costs and restrain stock valuations moving forward.
While the market’s headline figures remained positive, Monday’s session underscored growing disquiet beneath the surface. With tariff battles intensifying, global manufacturing cooling, and inflationary forces mixed, investors are left navigating a treacherous path—hopeful for growth, but wary of the price.