CNBC Business News Update - Market Open: Stocks Lower, President Trump's Post Rattles Investors, Inflation Lower In April 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 Eddinger, CNBC, Wall Street Lower. Out of the gate on worries of full-blown trade wars about to happen with China based on a post today by President Trump that downed down 103 points, being led lower by shares of Nike, which are down more than 1%. The S&P 500 index down 22 points, the NASDAQ down 110 points a half percent, Nvidia shares down a full 1 percent this morning. Uncertainty on Wall Street. Here are CNBC's Jim Cramer and Carl Quintanilla. President out with a lengthy post on Truth Social, which ends with him stating that China

has totally violated its agreement with the U.S. on tariffs. I mean, to me, the president, if he were not so mercurial, what you would say is, okay, well, whatever state of execution he gave China, that's about over. When I contrast this with Besson, Secretary of Treasury Besson's more calm voice, I come out with something which just says,

is this the prelude to a call to Xi? The market for now is ignoring some positive inflation data. Today, the inflation rate fell to 2.1% 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 US

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 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%. 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% this morning 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% tariff from China, you've got 10% from elsewhere. So second half of the year, you know, most retailers are warning, we're gonna get hit here.

SW retail advisors, President Stacey Widlitz on CNBC. Now, Alta Beauty and other retailer 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 Alta 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 city-wide 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 Ettinger, CNBC. You come to my show and you learn how to do stops. Mad Money, weeknight 6 Eastern, CNBC.