🤼♂️ Tariff tug-of-war: PCE, tech, and trade chaos grip markets
- NexxtGen Markets
- May 30
- 4 min read
Good morning, here's the latest Global Financial Markets update from Steve Halls at NexxtGen Markets here in the City of London.
Markets remain volatile as traders brace for the upcoming PCE inflation report amid renewed trade tensions, mixed earnings, and sharp moves in both equities and cryptocurrencies.
Overnight, Dow Jones Industrial Average futures slipped -0.1%, while S&P 500 futures dipped -0.2% and the Nasdaq-100 dropped -0.3%, reflecting caution ahead of today’s key economic data.
🧾 Trade tensions escalate again
Just a day after traders welcomed a trade court ruling blocking tariffs, a federal appeals court has reversed that optimism by reinstating former President Trump’s broad trade tariffs—at least temporarily. The abrupt legal pivot sparked renewed uncertainty, weighing on US indices and injecting fresh geopolitical risk into the markets.
While Q1 GDP was revised slightly higher to show a contraction of just 0.2%, from an earlier 0.3%, macro sentiment remains fragile. The impact of tariffs and potential retaliatory measures will likely play a significant role in shaping investor sentiment over the coming weeks.
📊 All eyes on the Fed’s favourite inflation gauge
Today’s big focus is the Personal Consumption Expenditures (PCE) index—the Federal Reserve’s preferred inflation measure. Markets expect a year-over-year reading of 2.2%, the lowest since last September, with core inflation holding steady at 2.6%.
While this suggests some cooling in price pressures—especially with falling gas prices—the Fed is not expected to shift its current rate stance just yet. Policymakers will be monitoring whether the renewed tariffs fuel fresh inflationary pressures before adjusting their course.
Keep a close eye on the US dollar and gold, both of which may see significant moves following the release.
📉 After-hours movers: retail, tech and beauty in the spotlight
🚨 Gap (GAP)
Down -16% after a flat Q2 revenue forecast overshadowed a Q1 earnings beat. With costs rising and tariff uncertainty back in play, investors saw limited momentum ahead.
🛒 Costco (COST)
Flat despite posting earnings of $4.28 per share on $63.2 billion revenue, beating estimates. Strong margins and same-store sales weren’t enough to drive movement, possibly due to already high expectations.
💻 Dell Technologies (DELL)
Up +5% after reporting $23.38 billion in revenue and raising full-year guidance. The AI server boom continues to fuel tech sector optimism.
💄 Ulta Beauty (ULTA)
Rallied +8% as Q1 earnings of $6.70 per share crushed expectations. Resilience in consumer discretionary spending—especially in beauty—stood out amid retail weakness.
👕 American Eagle (AEO)
Down -8% on a larger-than-expected Q1 loss and weak guidance. Concerns persist over shrinking margins and a soft outlook for summer apparel.
🔐 Zscaler (ZS)
Climbed +4% on strong cybersecurity demand, upbeat guidance, and growing enterprise IT spend.
🧠 UiPath (PATH)
Jumped +11% on bullish revenue guidance for Q2. Automation and AI integration are driving solid top-line growth.
🌐 Ether breaks out
As Bitcoin consolidates, Ether has surged to its highest levels since February. Renewed DeFi activity, strong institutional staking, and broader corporate interest are fuelling gains.
The second-largest cryptocurrency by market cap continues to benefit from shifting market narratives—offering investors an inflation hedge and exposure to the growing Ethereum ecosystem.
📈 Standout movers
🌟 e.l.f. Beauty (ELF) +23.6%
Beat Q4 estimates and acquired Hailey Bieber’s Rhode for $1 billion. Despite withdrawing 2026 guidance amid tariff concerns, investors backed the strategic brand expansion.
🧪 Veeva Systems (VEEV) +19.0%
Q1 beat and raised FY2026 forecast. With strong guidance for Q2, Veeva cemented its role in the life sciences cloud ecosystem.
🔻 SentinelOne (S.US) -11.6%
Tumbled after cutting guidance and reporting a major outage (non-cyber related). Sentiment remains weak amid increased competition in cybersecurity.
🚀 Nvidia (NVDA) +3.25%
Continued its AI-led surge post-earnings. Up 27% in May, it remains one of the top-performing S&P 500 stocks this month.
🔮 What to watch today
12:30 GMT – Canada Q1 GDP: Forecast +0.2% growth. CAD in focus.
12:30 GMT – US Core PCE (Apr): Forecast +0.2% MoM. Critical for USD, gold, and interest rate outlook.
13:45 GMT – US Chicago PMI (May): Forecast 47. Watch for US manufacturing signals.
🧭 On the radar
🌿 Canopy Growth (CGC)
Q4 earnings expected pre-market. Revenue forecast at $71.84M with a per-share loss of $0.28. Watch for forward guidance and balance sheet improvements.
🖥️ Dell Technologies (DELL)
Massive AI demand is driving bullish forecasts. Dell projects $7B in AI server shipments in Q2—more than double its prior record.
🔌 Marvell Technology (MRVL)
Q1 met expectations but fell -3% after-hours as investors questioned long-term visibility and custom chip exposure—despite strong AI-driven datacentre growth.
☢️ Going nuclear
Nuclear energy stocks remain hot despite Thursday’s pullback. Oklo (+122% this month), NuScale (+95%), and Centrus (+74%) lead the rally. Global X Uranium ETF is up 29% in May, highlighting growing enthusiasm for clean and scalable energy solutions amid heightened energy security concerns worldwide.
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*All prices / quotes correct at the time of writing.
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