CNBC Business News Update - Market Midday: Stocks Lower, Uncertainty Over China Trade, Retailers Are Dancing To Handle Tariffs 5/30/25

Episode Date: May 30, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC, Wall Street lower on worries a full-blown trade war could happen with China. The Dow now down 270 points, more than a half percent. Nvidia shares tanking 4 percent, leading the Dow lower. The S&P 500 index down 63 points, that's 1 percent% the NASDAQ down 300 points now that's one and a half percent investors are talking about JP Morgan's CEO and what he said at the Reagan National Economic Forum. I just got back from China last week they're not scared folks did this notion they're gonna come bow to America I don't I wouldn't count on that you know and when they have a problem they put a hundred thousand engineers on it.

They've been preparing for this for years. But we should engage. And when we do these trade agreements, the most important part is not making TVs or making furniture or T-shirts or sneakers, it should be the stuff that relates to national security. We know what constitutes national security. We shouldn't be stockpiling Bitcoin, we should be stockpiling guns, bullets, tanks, planes, drones, rare earths. The military guys tell you that if there's a war

in the South China Sea, we have missiles for seven days. Okay, come on. I mean, we can't say that with a straight face and think that's okay. That's JP Morgan's CEO, Jamie Dimon, at the Reagan National Economic Forum. The market for now is ignoring some positive inflation data. Today, the inflation rate fell to 2.1 percent in April, coming in lower than expected in

the new PCE report on personal consumption expenditures. We're talking about inflation in April. In April, what was on store shelves is really stuff that was brought into the U.S. in a fundamentally different tariff regime than the one that we have today. You are going to start to see some of these impacts down the road. That's why you're seeing Walmart tell you that they're going to have to raise prices. They know they're going to have to do that this summer because the cost of importing has gone up very significantly for them.

The effective tariff rates in this country today are 21 percent. When Trump took office, they were 2.5%. That's Yale School of Management's Natasha Sarin on CNBC. Costco shares turned around up 3% on strong quarterly results as the chain did a front run ahead of the tariffs, bringing in products. Gap and American Eagle Outfitters each lowered their outlooks for the year, though, blaming the tariffs.

You've heard from all the retailers, they're doing what they can. They've already moved largely out of China. They're trying to mitigate and cut costs elsewhere. But, you know, there's little you can do. You've got the 30 percent tariff from China and you've got 10 percent from elsewhere. So second half of the year, you know, most retailers are warning, we're going to get hit here. SW Retail Advisors President Stacey Widlitz on CNBC. Now Alta Beauty and other retailers shares

are going the other way. They're higher on strong quarterly results and celebrity collaborations and a strong outlook. When consumers feel uncertain, the lipstick factor may be at work. People start buying a little something to make them feel better in times of trouble, and Ulta Beauty may be benefiting. Elon Musk's SpaceX town called Starbase in Texas is now warning residents they may lose the right to continue using their own property. The town is considering a new zoning ordinance and citywide map. The town was formerly called Boca Chica Village, but Starbase is now a Type C municipal corporation run by officials who are SpaceX employees and former employees. New in theaters

today Sony's Karate Kid Legends. Focus features the Venetian scheme. A24's horror film Bring Her Back. Jessica Edinger, CNBC.