Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading lower on Friday as investors assess the impact of Chinese trade probes and the U.S.-Iran war.
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New trading tool for QQQ bullsChina’s Commerce Ministry initiated two retaliatory trade probes against the U.S. in response to the two Section 301 trade investigations imposed on China earlier this month. The move comes ahead of a summit between President Trump and Chinese President Xi Jinping on May 14-15 in Beijing, China, and could heighten tensions between the two countries as the talks approach.
U.S.-Iran War Deepens as Consumer Sentiment Dips
Elsewhere, missiles continue to fly as the U.S.-Iran war reaches its 27th day. According to Axios, the White House is considering the deployment of up to 10,000 additional combat troops to the Middle East in the next few days as the Pentagon prepares a “final blow” against Iran.
Furthermore, the impact of the war is starting to materialize in economic data. The University of Michigan’s Index of Consumer Sentiment for March dropped to 53.3 from 56.6, while year-ahead inflation expectations rose to 3.8% from 3.4%, marking the largest one-month increase since April 2025.