US stocks slipped in early trading Friday, giving back some of their recent gains as investors weighed a mixed batch of earnings reports, inflation data and ongoing uncertainty over the future of tariffs imposed under President Donald Trump.The S&P 500 fell 0.3% shortly after the opening bell, while the Dow Jones Industrial Average dropped 158 points, also 0.3%. The Nasdaq Composite declined by a similar margin.Leading the market lower was Gap Inc., whose shares tumbled after the retailer warned that tariffs on imports from China and other countries could increase its costs by as much as $300 million this fiscal year. This warning overshadowed its stronger-than-expected quarterly results.Meanwhile, Ulta Beauty rose 8% in early trading after reporting earnings and revenue that topped Wall Street forecasts, along with an upbeat full-year outlook.Investors also had an eye on Alphabet, parent company of Google, whose shares remained flat ahead of closing arguments in a landmark antitrust case that could result in major changes for the tech giant, which was previously ruled an illegal monopoly by a federal judge.Markets have been particularly sensitive to trade developments this week. Hopes were briefly lifted after a ruling from the US Court of International Trade determined that the 1977 International Emergency Economic Powers Act, used by Trump to justify sweeping tariffs, did not grant such authority. However, those tariffs remain in effect for now as the White House appeals the decision, leaving the ultimate resolution uncertain.The focus now shifts to the Commerce Department’s April report on consumer spending, due later Friday. The release includes the Federal Reserve’s preferred inflation measure, which analysts believe moved closer to the central bank’s 2% target.With the Fed keeping interest rates unchanged for three consecutive meetings amid inflation and trade concerns, investors will be listening closely to public remarks from three Fed officials scheduled for later in the day.Global markets showed mixed movement. In Europe, France’s CAC 40 rose 0.3%, Germany’s DAX climbed 0.8%, and the UK’s FTSE 100 added 0.6%.In Asia, Japan’s Nikkei 225 dropped 1.2% to 37,965.10 after inflation data from Tokyo showed core prices rising faster than expected, fueling speculation that the Bank of Japan may raise interest rates.Australia’s ASX 200 gained 0.3%, while South Korea’s Kospi slipped 0.8% ahead of next week’s presidential election. Hong Kong’s Hang Seng lost 1.2% and China’s Shanghai Composite shed 0.5%.The trade court’s ruling applies only to some tariffs, leaving those on steel, aluminum, and automobiles—enacted under a different law—unaffected. On Thursday, the US Court of Appeals for the Federal Circuit allowed the president to continue collecting the contested tariffs temporarily while the case proceeds.In energy markets, US crude dipped 7 cents to $60.87 per barrel, while Brent crude fell 10 cents to $63.25. In currency trading, the US dollar weakened to 143.68 yen from 144.12 yen, and the euro edged down to $1.1344 from $1.1367.
