Stocks Higher and Tariff Saga Continues

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of May 30, U.S. stocks rebounded during the holiday-shortened week, although major indexes faced some selling pressure late in the week and finished below their best levels. The Nasdaq Composite(COMP) led the way, gaining 2.01%, followed by the S&P 500 Index(SPX) and Dow Jones Industrial Average (DJI).

Delayed 50% tariff on EU goods, U.S. court of international Trade ordered the stop of global tariffs then a federal appeals court put a temporary hold on the ruling one day after. Comments from Treasury Secretary about U.S.-China trade talks being “a bit stalled”, as well as Trump’s social media comments that China had “violated” its preliminary agreement with the U.S. all the major events have contributed to the stocks volatility during the week. Refer to below major indexes performance tables for the week and also for the month of May.

Monthly indexes performance table as below. The old Wall Street adage states, "Sell in May and go away." However, this year investors did just the opposite. We saw a nice bump in performance in May, despite the ongoing uncertainty, the SPX is up about 6% for the month of May and is slightly positive this year. with the S&P 500 rising about 6% (after falling nearly 6% in the first four months of the year). Historically, a strong May has boded well for the forward 12-month market performance.

Key highlights for the week and next: 

1.    Core personal consumption expenditures(PCE)- the Fed’s preferred measure of inflation- rose 2.5% yoy in April, down from 2.7% in March and lowest annual reading since 2021. Many do not expect to see the full impact from tariffs until later this summer. 

2.    Corporate earnings season overall has outperformed expectations, driven by positive surprises in tech and health care. Last week, artificial intelligence (AI) giant NVIDIA delivered solid results, despite the overhang from trade restrictions in China. 

3.    The University of Michigan reported that the final reading of its May Index of Consumer Sentiment was unchanged from April, ending four consecutive months of steep declines. 

SPX sectors in play

10 out of 11 SPX sectors recorded weekly losses, Technology (XLK) and Financials(XLF) led the gains while Energy(XLE) lagged. Refer to below SPX sectors ETF weekly performance table.

While earnings estimates have been revised downward this year as tariff and trade uncertainty have sparked caution in the outlook, investors still forecast positive earnings growth for nine of the 11 S&P 500 sectors. Refer to below chart for earnings growth by sectors for 2025.

Indexes technical levels

The SPX has turned to positive slightly YTD after last week’s gains, while the other two major indexes still under water with moderate losses. The indexes appears to have stalled and in side-way consolidation mode after strong May rebound. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets retreated as a light economic calendar and a pause in the U.S- sparked trade war dampened buying sentiment. The Shanghai Composite Index(SSE) edged lower 0.03% while the blue-chip CSI 300 shed 1.08%. In Hong Kong, the benchmark Hang Seng Index fell 1.32%. (refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    After the pause in the tariff war that the U.S. and China negotiated earlier in May, Beijing has stepped up efforts to help shield its economy ahead of the expiration of the 90-day negotiation window in August. China plans to allocate RMB 500 billion, or roughly USD 70 billion, of capital to invest in new infrastructure projects, Bloomberg reported, citing unnamed sources. Under the so-called new financing policy tool, China’s three state-run policy banks will raise funds and buy stakes in projects such as artificial intelligence, the digital economy, and consumption-related infrastructure. 

2.    Separately, officials who are preparing Beijing’s next Five-Year Plan starting in 2026 are studying whether to maintain the share of manufacturing in gross domestic product at a stable level over the longer term, Bloomberg reported, citing unnamed officials. Though officials are still hashing out the next Five-Year Plan—which serves as an economic blueprint for the country—the reports suggest that Beijing plans to stick with its manufacturing-driven economic strategy, which the U.S. and Europe have criticized for fueling trade imbalances.

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged higher 0.31% to close at 3894.61 point this week. The indexed showed very resilient performance, had one week down in the past seven weeks in a row despite the ongoing tariff wars and many ups and downs in the U.S. For May, STI index gained slightly 1.62%, a typical slow-and-steady pattern, which is preferred for buy-and-hold type of investors.

Top weekly gainers including ST Engineering (+3.85%), SATS(3.69%) and some REITs appear gaining attraction such as Ascendas and MLT. Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.