Midday Market Roundup for Friday, May 30, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, May 30, 2025:

1. Global Equity Funds See Outflows as Tariff Fears Rise

Global equity funds experienced outflows for a second consecutive week, with investors withdrawing $7.7 billion from these funds through May 28. The move reflects growing risk aversion after President Trump’s threats of 50% tariffs on European Union imports and foreign-made iPhones, as well as a spike in long-term bond yields. Notably, Asian equity funds saw their largest weekly outflow since 2018, while U.S. equity funds lost $5.46 billion. In contrast, European equity funds attracted inflows for the seventh consecutive week, and global bond funds continued to see strong demand, with $15.2 billion in inflows. Gold and precious metals funds also broke a five-week streak of outflows, attracting $1.3 billion as investors sought safe havens (Reuters).

2. U.S. Stocks Mixed as Investors Digest Tariff Uncertainty and Earnings

At midday, U.S. equities were in a state of flux. The S&P 500 and Nasdaq were on a downward trend as investors grappled with renewed U.S.-China trade tensions and a cooling inflation outlook. Notable movements included Costco, which saw a healthy 3% increase after surpassing quarterly earnings expectations, and Ulta Beauty, which soared nearly 13% to a 52-week high after raising its annual profit outlook. On the other hand, Gap experienced a significant 20% drop due to a flat sales forecast, and Marvell Technology saw a 6% decrease after posting disappointing results. Palantir Technologies, buoyed by reports of expanded government contracts, saw a rise of over 5%, while Regeneron Pharmaceuticals and Sanofi experienced a sharp decline after mixed results from a late-stage drug trial (CNBC, Yahoo Finance).

3. Consumer Sentiment Stabilizes as Inflation Cools

The University of Michigan’s final May consumer sentiment survey showed steady confidence, ending a four-month streak of declines. Americans expressed increased optimism about the economy, likely due to the temporary suspension of specific tariffs on Chinese goods and signs of cooling inflation. The Fed’s preferred inflation gauge, the core PCE index, aligned with expectations and pointed to moderating price pressures. However, long-term inflation expectations dipped, and University of Michigan survey director Joanne Hsu noted that consumers remain concerned about stagnating incomes and future economic prospects (Yahoo Finance, CNBC).

4. Global Economy Shows Resilience Despite Trade Drama

Despite the ongoing drama surrounding tariffs and trade policies, the global economy has shown remarkable resilience. Recent data from the U.S., China, and Europe all point to modest growth, with the IMF projecting a global GDP expansion of 2.8% for this year. Economists attribute this to robust consumer demand and accelerated business activity in anticipation of potential tariff hikes. However, it's worth noting that U.S. GDP growth remains subdued, with annualized growth of around 1% in the second quarter and exports of goods and services declining for the second consecutive month. Manufacturing inventories have surged as companies brace for potential supply disruptions, and price pressures remain high compared to those in other major economies (Reuters, S&P Global).

Sources:
Reuters: https://www.reuters.com/world/china/global-markets-flows-graphic-2025-05-30/
CNBC: https://www.cnbc.com/2025/05/30/stocks-making-the-biggest-moves-midday-cost-pltr-gap-ulta.html
Yahoo Finance: https://finance.yahoo.com/news/top-stock-movers-now-regeneron-155927197.html
Reuters: https://www.reuters.com/business/finance/global-economys-sugar-rush-defies-trade-drama-now-2025-05-30/
S&P Global: https://www.spglobal.com/marketintelligence/en/mi/research-analysis/week-ahead-economic-preview-week-of-26-may-2025.html

Disclosure:
The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

‍