S&P 500 Rips 6.2% Higher in May—Best Month Since November’s Sugar Rush

Wall Street’s favorite benchmark just flexed its muscles—posting the biggest monthly gain since crypto bros were still hungover from last year’s ETF approvals.

Funny how traditional markets suddenly remember how to rally when the Fed whispers about rate cuts. Meanwhile, your 401(k) still can’t decide if this is a bull trap or the real deal.

Trump reignites China tensions during trading hours

While stocks had climbed throughout most of the week, Friday’s session turned shaky after TRUMP said in a post that China “violated” its current trade agreement with the United States. The statement rattled markets, briefly reversing gains before things stabilized.

Later that day, Bloomberg reported that the administration could roll out broader restrictions targeting China’s technology sector, fueling concerns that the US-China trade conflict might be far from over.

Adding to that, Treasury Secretary Bessent appeared on Fox News to confirm that talks with China had stalled. That left investors wondering whether a full agreement could ever materialize under the current WHITE House strategy.

“It’s an awkward time,” said Jay Hatfield, chief executive officer of Infrastructure Capital Management. “If you’re an investor, you want to bet on good earnings, not good tweets about tariffs.”

The situation got messier midweek when the Court of International Trade temporarily blocked most of Trump’s existing tariffs, citing legal issues. But by Thursday afternoon, an appeals court issued a stay that kept the tariffs in place until at least the following week. 

Reports from The Wall Street Journal said the White House was weighing using the Trade Act of 1974 to impose new 15% tariffs for 150 days, bypassing Congress altogether.

Weekly figures showed a steady climb. The S&P 500 added 1.9%, the Dow rose 1.6%, and the Nasdaq gained 2% over the five-day stretch. The overall market rally came as investors seemed willing to stomach the uncertainty around trade, courts, and foreign policy — as long as the earnings stayed strong.

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