Stock futures fell Friday morning, to close out a big winning month, after President Donald Trump said China violated its preliminary trade agreement, reigniting fears that the U.S. could enter a drawn out a trade war. Futures tied to the Dow Jones Industrial Average lost 174 points, or 0.4%. S&P 500 futures and Nasdaq-100 futures each slid 0.6%. Futures took a leg down on Friday morning after Trump claimed in a social media post that China “violated” its current trade agreement with the U.S. That comes after Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks “are a bit stalled.” The administration has found its contentious plan for broad and steep levies in legal limbo. Investors are now wondering if, or when, a long-term agreement between China and the U.S. can be reached. Legal concerns hit a boiling point after the Court of International Trade on Wednesday night halted the majority of Trump’s tariffs. But an appeals court granted a stay on Thursday afternoon, allowing the duties to remain in place until next week. The Trump administration is now considering using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to The Wall Street Journal. The legal battle around tariffs is the latest dose of uncertainty for what was an already uneasy market. Investors have contended with macroeconomic concerns tied to tariffs and worry that the shakeup to U.S. trade policy could cause a recession. Yet stocks are on the verge of closing out May with strong gains following a rocky April. A chunk of the gains followed a trade deal announcement between the U.S. and United Kingdom early in the month, which investors hoped could pave for the way for more agreements with countries facing duties. The S&P 500 has added more than 6% this month, while the Nasdaq Composite has surged 10% in that time. The 30-stock Dow has gained about 4% on the month. “I think as we head into summer that momentum can continue, [but] then that’s where the hard data that may catch up to the weaker, soft data, could come into play,” Ned Davis Research chief U.S. strategist Ed Clissold told CNBC’s “Closing Bell” on Thursday. “I think as we move through the second quarter into the third quarter, there’s still some good momentum in the market.” For the week, the S&P 500 has advanced about 2%, while the 30-stock Dow is up 1.4%. The tech-heavy Nasdaq has advanced 2.3%. Investors also monitored the personal consumption expenditures price index released on Friday. The index, which is considered a favorite by the Federal Reserve, came in lower than economists expected at 2.1% for April on an annualized basis. U.S. Treasury yields held steady on Friday as investors parsed inflation data and considered the latest news on U.S. President Donald Trump’s “reciprocal” tariffs. The 30-year Treasury yield added about 2 basis points to 4.947%. The 10-year Treasury yield ticked about 1 basis point higher, trading at 4.438%. The 2-year yield also sat near flat at 3.941%. Asia-Pacific markets mostly fell Friday, with a slowing U.S. economy, inflation fears and uncertainties from the judicial developments surrounding U.S. President Donald Trump’s “reciprocal” tariffs weighing on investor sentiment. Japan’s benchmark Nikkei 225 declined 1.22% to end the day at 37,965.10, while the broader Topix index moved down 0.37% to 2,801.57 as investors parsed a slew of data releases. Korean index dropped 0.84% to close at 2,697.67 while the small-cap Kosdaq fell 0.26% to 734.35. Mainland China’s CSI 300 index ended the day 0.48% lower at 3,840.23, while Hong Kong’s Hang Seng Index retreated 1.2% to 23,289.77. Over in Australia, the S&P/ASX 200 rose 0.3% to end the day at 8,434.70. Oil prices were on track for a second consecutive weekly decline on Friday, weighed down by expectations of another OPEC+ output hike in July and fresh uncertainty after the latest legal twist kept U.S. President Donald Trump’s tariffs in place. Brent crude futures gained 25 cents, or 0.4%, to $64.40 a barrel. U.S. West Texas Intermediate crude climbed 40 cents, or 0.7%, to $61.35 a barrel. The Brent July futures contract is due to expire on Friday. For the week, however, WTI was down 0.3%, while Brent has lost 0.6%. Gold prices fell on Friday as the dollar ticked up, while investors remained cautious ahead of key U.S. inflation data due later in the day to gauge the Federal Reserve’s monetary policy trajectory. Spot gold was down 0.6% at $3,295.99 an ounce, as of 0841 GMT. Bullion is down 1.8% so far this week. U.S. gold futures fell 0.6% to $3,294.20. The dollar rose 0.2% against its rivals and is on track for a weekly gain, making gold costlier for foreign buyers.