Stock Market Update: Dow Falls on U.S.-China Tensions, Steel Stocks Surge After Trump Tariffs
Dow Jones Falls Amid Trade Tensions
The Dow Jones Industrial Average dropped nearly 200 points (0.4%) on Monday due to renewed U.S.-China trade tensions. Despite the overall dip, blue-chip stocks like Nvidia (NVDA) and UnitedHealth (UNH) recorded modest gains.
Nvidia and UnitedHealth Show Strength
UnitedHealth led the Dow’s limited gains, rising almost 2%, though the stock remains down 39% for the year. Nvidia also added nearly 1% in Monday’s session.
Steel Stocks Rally After Trump’s Tariff Announcement
Steel companies saw a strong rally after President Donald Trump announced he would double tariffs on steel imports—from 25% to 50%—to boost the U.S. steel industry. As a result:
- Nucor surged nearly 10%
- Cleveland-Cliffs jumped 25%
- Steel Dynamics (STLD) tested a key breakout level, rising around 10%
The VanEck Steel ETF (SLX) also rose more than 3%.
Nasdaq and S&P 500 Also Down
The Nasdaq Composite slipped 0.1% but stayed above major moving averages. Notable gainers on the Nasdaq included:
- Grail (GRAL) up over 7%
- Zscaler (ZS) up nearly 5%
Meanwhile, the S&P 500 lost 0.3%, with energy stocks leading and real estate and consumer discretionary sectors lagging. Standout performers included:
- Newmont (NEM) up 6%
- Broadcom (AVGO) up nearly 3%
On the downside:
- First Solar (FSLR) fell over 4%
- Ford (F) dropped nearly 4%
Small-Cap Stocks and Growth Funds
The Russell 2000 index dipped 0.3%, remaining below its 200-day moving average. Growth-focused IBD 50 ETF (FFTY) gained 0.3%, bringing its 2025 return to over 4%.
Treasury Secretary Reassures on U.S. Debt
Treasury Secretary Scott Bessent attempted to calm market concerns about rising U.S. debt. Speaking on CBS’s Face the Nation, he stated:
“The United States will never default.”
He also dismissed Jamie Dimon’s warning of a possible bond market crisis, saying such predictions haven’t materialized in the past.
U.S.-China Trade Deal Dispute Heats Up
Tensions escalated as China accused the U.S. of breaking their temporary trade truce agreed on May 12. China criticized tech export controls and threatened “strong countermeasures.” The White House confirmed that Trump and Xi Jinping are expected to speak this week.
Rare-Earth Exports Become a Flashpoint
The U.S. expressed concern over China’s restrictions on rare-earth minerals, which are vital for manufacturing EVs, semiconductors, and defense equipment.
