TL;DR

S&P, Nasdaq post decades-best May; U.S. inflation nears Fed target; Trump to double steel tariffs.

Highlights

• S&P 500 (+6.2%) and Nasdaq (+9%) post best May gains since 1990 and 1997, respectively, led by tech, consumer discretionary, and industrials 9.
• U.S. inflation (PCE) drops to 2.1%, a four-year low and near the Fed’s target; personal incomes and on-shored business investment rise 3.
• Trump to double U.S. steel import tariffs to 50% next week; also endorses U.S. Steel–Nippon Steel deal, pledging Pittsburgh HQ retention 14.
• U.S.-China trade truce under threat as rare earth export dispute disrupts Ford and EU production; Trump-Xi call scheduled 2.
• REX Shares and Osprey file for first U.S. staked Ether and spot Solana staking ETFs, aiming for launch within weeks 6.
• Elon Musk pushes for regulatory changes to allow more Tesla robotaxis ahead of June 12 Austin launch 5.
• Israeli airstrikes hit Syrian missile depots supplied by Turkey, causing civilian casualties and raising regional tensions 7.
• White House proposes FY26 NASA budget: ends SLS/Orion after Artemis III, shifts to commercial lunar/Mars transport, cuts workforce, cancels missions 10.
• X (formerly Twitter) suffers third global outage in two weeks, with over 34,000 user reports 11.
• U.S. issues Level 4 travel advisories for Venezuela and parts of Brazil due to security risks and increased detentions 13.

Commentary

U.S. equities ended May with their strongest monthly performance in decades, as cooling inflation (PCE at 2.1%) and robust personal income growth supported risk appetite 39. The rally was broad, with technology, consumer discretionary, and industrials leading gains, while small-caps and the Dow also advanced 9. The data on rising on-shored business investment and narrowing trade deficit further reinforced the narrative of a resilient U.S. economy, even as policy uncertainty remains 3.

Trade and industrial policy are back in focus. Trump’s move to double steel tariffs next week is set to benefit domestic steel producers but may pressure margins for manufacturers reliant on steel inputs 1. The administration’s endorsement of the U.S. Steel–Nippon Steel deal, with a commitment to keep the HQ in Pittsburgh, signals openness to foreign capital in strategic sectors—provided U.S. oversight is maintained 4. Meanwhile, the U.S.-China trade truce is fraying, with rare earth supply disruptions already impacting Ford ’s Chicago plant and threatening broader supply chains 2. Markets will be watching the upcoming Trump-Xi call for any sign of progress 2.

In crypto, filings for the first U.S. staked Ether and spot Solana staking ETFs could drive institutional flows if approved, marking another step in the mainstreaming of digital assets 6. Tesla ’s lobbying for regulatory changes ahead of its robotaxi launch highlights both the pace of innovation and the ongoing friction between technology and regulation 5.

Geopolitical risks persist, with Israeli airstrikes in Syria and continued uncertainty in Ukraine-Russia negotiations 78. These developments could inject volatility into energy and defense sectors 7. The White House’s proposed NASA budget marks a significant pivot toward commercial space operations and cost-cutting, with potential implications for aerospace contractors 10.

For the next session, traders should monitor early June inflation data 3, developments in U.S.-China trade talks 2, and regulatory headlines in crypto 6 and autonomous vehicles 5. Sector rotation remains a risk if trade tensions escalate or if tech momentum fades.