Stocks traded mixed Monday midday as investors digested stronger-than-expected economic data alongside politically charged policy signals from President Donald Trump. The Dow Jones Industrial Average rose 91.62 points, or 0.22%, to 41,409.1. The Nasdaq Composite fell 87.53 points, or 0.49%, to 17,890.2, while the S&P 500 dipped 16.06 points, or 0.28%, to 5,670.61.

The initial optimism was fueled by the April ISM Services PMI®, which rose to 51.6—up from 50.8 in March and ahead of the consensus estimate of 51.0. The reading marks the tenth consecutive month of expansion in the services sector and extended last week’s rally triggered by a cooler-than-feared jobs report.

The headline number offers mixed signals, with new orders and supplier deliveries improving, while employment, though still in contraction territory, rebounded from March’s decline. The strongest component was New Orders, which rose to 52.3 from 50.4, signaling a pickup in demand. Supplier Deliveries also climbed to 51.3, suggesting lengthening lead times amid stronger activity or emerging bottlenecks.

However, the report also raised fresh concerns over inflation. The Prices Paid index surged to 65.1 in April from 60.9 in March, marking its fifth consecutive month above 60. Respondents cited “higher input costs, vendor pricing power, and the impact of tariffs on procurement planning and cost structures.”

The report is one of the final pieces of economic data ahead of the Federal Reserve’s policy decision this Wednesday. While the Fed may welcome evidence of steady demand, the rise in prices paid could keep the Fed wary of signaling an imminent rate cut, especially in the face of renewed tariff pressures and supply-side inflation.

Adding to the uncertainty, Trump issued a series of provocative policy statements over the weekend that touched on trade, criminal justice, central banking, and tech regulation.

On Truth Social, Trump called the American movie industry “DYING a very fast death” and blamed foreign governments for luring production abroad. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States,” he wrote. Labeling the trend a “National Security threat,” Trump announced plans to impose a 100% tariff on foreign-produced movies. “WE WANT MOVIES MADE IN AMERICA, AGAIN!”

In another post, Trump demanded the resurrection of the infamous San Francisco Bay prison Alcatraz: “REBUILD, AND OPEN ALCATRAZ!” He proposed the prison be operated jointly by the Department of Justice, FBI, Bureau of Prisons, and Homeland Security, saying, “The reopening of ALCATRAZ will serve as a symbol of Law, Order, and JUSTICE.”

On monetary policy, Trump told NBC’s Meet the Press that he would not remove Federal Reserve Chair Jerome Powell before the end of his term in May 2026: “I won’t replace Powell before his term is up.” While the assurance could calm markets concerned about Fed independence, Trump reiterated his criticism of the central bank’s current trajectory, saying its policies are “too tough” on the economy.

Trump also addressed TikTok’s future, indicating flexibility on the June 19 deadline for ByteDance to divest the app’s U.S. operations. “I’d like to see it done,” he said of a potential deal to bring the platform under American ownership.

Together, the ISM data and Trump’s remarks highlight the crosscurrents facing markets: steady demand and political volatility, stable leadership and renewed inflation risk—all just ahead of a critical Fed decision.