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Indexes: Dow flat, S&P 500 down 0.15%, Nasdaq down 0.36%

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Regeneron slides on mixed trial data on smoker's lung drug

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Ulta Beauty ( ULTA ) gains after raising annual profit forecast

(Updates with afternoon trading levels)

By Shashwat Chauhan and Kanchana Chakravarty

May 30 (Reuters) - Wall Street's main indexes were under

pressure on Friday as U.S. President Donald Trump accused China

of violating a tariff agreement, ramping up tensions in a

bruising trade war and clouding the last day of an otherwise

strong month for equities.

Trump's post on his Truth Social platform said China had

breached an agreement with the U.S. to mutually roll back

tariffs and trade restrictions for critical minerals, and issued

a new veiled threat to get tougher with Beijing.

His message, which did not specify how China had violated

the agreement, dashed hopes for a broader and more permanent

solution to the trade spat between the world's two largest

economies.

"The predominant theme today is Trump's Truth Social post

... investors are pleased with the PCE data but it's not really

the driving force or factor behind today's trade," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

Data showed U.S. consumer spending increased marginally in

April, with the year-on-year reading increasing to 2.1% after

advancing 2.3% in March. The Fed tracks the PCE price measures

for its 2% inflation target.

Traders maintained their bets that the U.S. central bank

would cut its target for short-term borrowing costs in

September.

Despite the losses, both the Nasdaq and the S&P 500

are on track for their biggest monthly gain since

November 2023. The Dow is also set for monthly gains for

the first time since January.

It has been a volatile month for stocks as Trump's

on-and-off trade moves kept investors on edge, but his softening

tariff stance, along with upbeat earnings and tame inflation

data, had helped the S&P 500 rebound from its April lows. It is

now about 4% lower than a record high hit in February.

At 11:27 a.m. ET, the Dow Jones Industrial Average

was up 4.66 points, or 0.01%, to 42,220.39, the S&P 500

lost 8.94 points, or 0.15%, to 5,903.23 and the Nasdaq Composite

lost 68.34 points, or 0.36%, to 19,107.53.

Most megacap and growth stocks fell, with Nvidia ( NVDA )

down 2.5% following its results-driven rally on Thursday.

Seven of the 11 major S&P 500 sub-sectors fell, with energy

and information technology declining the most.

In the previous session, U.S. equities initially rallied

after the Court of International Trade ruled late on Wednesday

to effectively block most levies imposed since January, without

addressing some industry-specific tariffs.

However, a federal appeals court on Thursday temporarily

reinstated most of the tariffs and ordered the plaintiffs in the

cases to respond by June 5 and the administration by June 9.

Among other big movers on the day, Ulta Beauty ( ULTA )

jumped 11.5% after the cosmetics retailer raised its annual

profit forecast after beating quarterly results.

Shares of drugmaker Regeneron dropped almost 20%

after its experimental drug for patients with a type of lung

condition commonly called "smoker's lung" failed a late-stage

trial, although it succeeded in another.

Declining issues outnumbered advancers by a 1.36-to-1 ratio

on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.

The S&P 500 posted 11 new 52-week highs and two new lows

while the Nasdaq Composite recorded 35 new highs and 60 new

lows.