S&P Falls Amid Trump Accusations of China

The S&P 500 fell Friday, to close out a big winning month, after President Donald Trump said China violated its preliminary trade agreement, reigniting fears that the U.S. could enter a drawn-out trade war.The Dow Jones Industrials cleared breakeven 16.4 points to kick off the month’s last session at 42,232.13.The much-broader index slid 6.1 points to 5,906.07.The NASDAQ Composite weakened 53.15 points to 19,122.73. For the week, the S&P 500 has advanced 1.5%, while the 30-stock Dow is up 1%. The tech-heavy NASDAQ has advanced 1.9%.Among stocks of note, Gap faltered $5.44, or 19.5%, to $22.51. Trump claimed in a social media post that China “violated” its current trade agreement with the U.S. That comes after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks “are a bit stalled.”The administration has found its contentious plan for broad and steep levies in legal limbo. Investors are now wondering if, or when, a long-term agreement between China and the U.S. can be reached.Legal concerns hit a boiling point after the Court of International Trade on Wednesday night halted the majority of Trump’s tariffs. But an appeals court granted a stay on Thursday afternoon, allowing the duties to remain in place until next week.The Trump administration considered using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to The Wall Street Journal.The legal battle around tariffs offers the latest dose of uncertainty for what was an already uneasy market. Investors have contended with macroeconomic concerns tied to tariffs and worry that the shakeup to U.S. trade policy could cause a recession.Prices for the 10-year Treasury were ahead, lowering yields to 4.40% from Thursday’s 4.44%. Treasury prices and yields move in opposite directions. Oil prices dipped 44 cents to $60.50 U.S. a barrel. Gold prices climbed $33.80 to $3,283.30