Dow Jones Late Comeback Shows Buyers Really Want A Bullish Break

Geopolitical Headlines Stir Market Sentiment

Adding to market uncertainty was a report from the Financial Times that President Trump is taking steps to tighten restrictions on American chip designers, directing them to halt sales to China. This development further complicates U.S.-China trade and technology relations and casts a shadow over future earnings for U.S. semiconductor companies, which rely heavily on Chinese demand.

Although the immediate market reaction was relatively muted, the longer-term implications for supply chains and corporate revenue models could introduce fresh volatility into an already sensitive sector.

Daily Closing Levels – Friday:

• The Dow Jones Industrial Average closed at 42,270.07, up 54.34 points or +0.13%.
• The S&P 500 ended at 5,911.69, down 0.48 points (–0.01%).
• The Nasdaq Composite closed at 19,113.77, down 62.11 points (–0.22%).
• The Russell 2000 finished at 2,066.26, falling 8.49 points (–0.41%).

Weekly Performance Overview:

• The Dow rose 1.60% over the week.
• The S&P 500 increased 1.88% for the week.
• The Nasdaq advanced 2.01% on a weekly basis.
• The Russell 2000 similarly recorded a weekly gain of 2.01%.

May Month-End Summary:

• Dow: +3.94%
• S&P 500: +6.15%
• Nasdaq: a standout rise of +9.56%
• Russell 2000: +5.20%

Despite a mixed finish on Friday—where the S&P and Nasdaq closed marginally lower—the major U.S. indices posted strong weekly and monthly gains, fueled by upbeat earnings, robust AI momentum, and resilient economic data.

Nasdaq emerged as the top performer for May, rallying nearly 10%, thanks to leadership from heavyweight tech and semiconductor stocks. The Dow and Russell 2000 also joined the advance, suggesting broader market participation. As the second half of the year approaches, bulls remain in control, supported by optimism around AI, earnings strength, and stable macro indicators.

Conclusion: Although Friday’s trading session saw slight declines in the major indices, the week as a whole was positive, and the month-end performance was particularly strong—especially for the Nasdaq. This mixed, yet overall resilient market performance highlights a cautious optimism among investors, setting a positive tone as trading approaches the next cycle.