Stock market today: Dow, S&P 500, Nasdaq futures slide after House gives green light to Trump's tax bill

US economic output rebounded in May as businesses digested President Trump’s tariff rollback.

S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 52.1 in May, up from 50.6 in April.

Increased activity in both the services and manufacturing sectors helped drive the gains. S&P’s services PMI increased to 52.3 in May, up from 50.8. Meanwhile, the manufacturing PMI also increased, rising to 52.3, above the 50.2 seen the month prior.

“Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate tariffs,” S&P Global Market Intelligence chief business economist Chris Williamson said in the release.

Still, the data showed clear signs that tariffs are beginning to push prices higher and cause supply chain problems.

“Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022, and prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers,” Williamson said. “The overall rise in prices charged for goods and services in May was the steepest since August 2022, which is indicative of consumer price inflation moving sharply higher.”