Wall Street closed mixed at the end of May amid ongoing trade tensions between the US and China. The Dow Jones rose 0.1%, the Nasdaq fell 0.3%, and the S&P 500 remained flat. Retailers reported mixed earnings results influenced by President Donald Trump's intermittent tariffs. Gap Inc., which owns Banana Republic and Old Navy, warned of $250 million to $300 million in tariff-related costs, aiming to mitigate more than half of these expenses. Following this announcement, Gap's shares plunged over 20%. In contrast, Ulta Beauty reported signs of improvement in the first quarter, with stable operating cash flow and expected comparable sales growth of flat to 1%, indicating resilience despite a challenging environment. Burlington Stores noted that the tariff-driven market volatility could create buying opportunities for off-price retailers, with consumer visits to Burlington rising 6.5% year-over-year in Q1 2025, while traffic at Gap and Old Navy declined. Despite concerns about consumers trading down or stockpiling, Ulta's CEO reported no evidence of such behavior. Overall, tariffs have pressured profit margins and reshaped consumer preferences toward value-driven brands, impacting retail sector performance as companies navigate the uncertain trade landscape.