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Russian (RU) Mon, May 5, 2025, 12:17 PM 2 min read
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US stocks were mixed on Monday, set for a retreat from a historic run of gains as President Trump's new tariff threat revived trade war worries in the wait for a Federal Reserve policy decision.
The S&P 500 (^GSPC) slid roughly 0.3%, eyeing a cooldown from its longest winning streak in over 20 years. The Dow Jones Industrial Average (^DJI) reversed early trading losses to rise 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) dropped about 0.4% to lead the declines.
Stocks are pulling back, and the US dollar (DX=F) is losing ground as Wall Street gauges whether recent confidence that Trump has moved to a dealmaking phase is misplaced.
Nasdaq GIDS - Free Realtime Quote USD
As of 1:22:12 PM EDT. Market Open.
^IXIC ^DJI ^GSPC
Investors had been riding a wave of optimism, fueled largely by early indications that the US and China are inching toward the negotiating table for discussions on tariffs. Chinese officials have signaled reopening trade talks with Washington, though no start to negotiations appears imminent.
But Trump said at the weekend that he has no plans to speak to his Chinese counterpart, President Xi, this week, even as he said he wants a "fair deal" with the country.
In a social media post on Sunday, Trump said movies produced outside the US will face a 100% tariff. He said efforts to start the process will start immediately, though he offered little detail on the duties.
Looking ahead, Wall Street’s attention turns to the Federal Reserve's two-day policy meeting that kicks off on Tuesday. The Fed is expected to hold steady with current rates, even with Trump amping up pressure on its chair, Jerome Powell, in recent weeks.
Berkshire Hathaway (BRK-B, BRK-A) stock dropped about 3% after the conglomerate's board approved longtime CEO Warren Buffett's appointment of Greg Abel as his successor starting in 2026.
On the earnings front, this week sees earnings continue to roll in, with high-profile reports expected from Ford (F), Palantir (PLTR), Disney (DIS), and AMD (AMD) set to roll in this week.
LIVE 13 updates
Netflix leads media declines as Trump threatens 100% tariff on foreign-made films
Netflix (NFLX), Warner Bros. (WBD), and other media stocks fell Monday following President Trump's call for a 100% tariff on all foreign-produced films.
Stocks recouped steeper losses by mid-morning, although Netflix continued to lead the declines, down about 2%. Warner Bros. Discovery and Paramount Global (PARA) slipped around 1% after also recovering from earlier session lows. Disney (DIS) traded flat.
The companies did not immediately respond to Yahoo Finance's request for comment.
The market reaction comes after Trump directed his administration late Sunday to impose "a 100% tariff on any and all movies coming into our country that are produced in foreign lands," sending shockwaves through an industry still reeling from the pandemic shutdown and the recent writers' and actors' strikes.
The proposed tariffs could affect several blockbusters filmed abroad, including Disney's "Avengers: Doomsday" and "Spider-Man: Brand New Day" (London), 20th Century's "Avatar: Fire and Ash" (New Zealand), Paramount's "Mission: Impossible — The Final Reckoning" (global locations), Lionsgate's Ballerina (Czech Republic), and Lucasfilm's "Star Wars: Starfighter" (UK).
"Until there is more clarity, this new development — which should’ve been predicted by all Hollywood C-suites — will likely slow down the business, or, in a worst case, shut it down in exactly the same way that the strikes affected Hollywood," Chris Fenton, longtime Hollywood executive, told Yahoo Finance.
Veteran film producer Kathryn Arnold called the proposed tariffs "insane and devastating," warning they could wipe out lower to mid-budget films by driving up costs and disrupting a globally interconnected system.
"If films are forced to be made here, the pricing of labor and goods and services is higher. Budgets will go up," she said, noting US tax incentives aren’t nearly enough to offset domestic production costs.
The ripple effects, she added, would hit everyone from crew to catering.
Tesla stock drops 3% as data shows sales in Spain dropped in April
Tesla (TSLA) shares dropped more than 3% on Monday as registration data showed the electric vehicle giant's sales dropped in Spain during April, compared to a year ago.
New car sales fell at an annualized rate of 36% last month, while other brands saw an uptick in purchases of their EVs.
Tesla's brand has been impacted over the past several months in important European regions since CEO Elon Musk became involved with the Trump administration, including spearheading government efficiency efforts.
Last week, Tesla chair Robyn Denholm denied a report from the Wall Street Journal saying that Tesla’s board of directors was looking for CEO Elon Musk’s replacement.
Big tariffs on auto parts are now in effect. Here's how they work.
Yahoo Finance's Pras Subramanian reports:
Oil slips 2%, hovers at 4-year low as OPEC opens supply spigot
Oil prices tumbled more than 2% on Monday over expectations of a supply boost from OPEC+, while trade war-sparked demand worries linger.
West Texas Intermediate (CL=F) futures fell to around $57 a barrel, while Brent crude (BZ=F), the international benchmark, also dropped to near $60 per barrel.
Prices declined after members of the Organization of Petroleum Exporting Countries on Saturday agreed to boost production levels next month by the same increase as in May. Wall Street anticipates the cartel will likely raise output in July too.
OPEC began unwinding multiyear production curbs as it reverses its prior initiative of supporting prices. Reuters recently reported that the group's leader, Saudi Arabia, is willing to live with lower prices for a prolonged period, hinting at a faster unwind of cuts in order to expand market share.
In April, crude oil prices capped their worst monthly drop since November 2021 amid fears over a global economic downturn and demand shock from President Trump's tariff policy.
Over the weekend Goldman Sachs dropped its forecast on higher supply from OPEC.
“We now forecast Brent/WTI to average $60/56 (vs. 63/59 prior) in the remainder of 2025 and $56/52 (vs. 58/55 prior) in 2026,” wrote Goldman Sachs' Daan Struyven and his team.
“Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside despite relatively tight spot fundamentals,” added Struyven.
Economic data shows mixed reading on activity in the services sector
Two readings on activity in the services sector painted a mixed picture of the state of US economic activity.
The Institute for Supply Management's ISM services index increased to 51.6 in April, its highest reading since January 2023.
"Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures," Chair of the Institute for Supply Management Service Business Survey Steve Miller said in the release. "Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving."
Meanwhile, S&P Global's US Services PMI, also released on Monday, fell to a reading of 50.8, the lowest reading since November 2023.
"While tariff announcements mean manufacturing dominates the news, a worrying backstory is developing in the vastly larger services economy, where business activity and hiring have come closer to stalling in April amid plunging business confidence," S&P Global Market Intelligence chief business economist Chris Williamson said in the release.
S&P 500 on pace to snap 9-day win streak as stocks slide
US stocks dropped on Monday, with the S&P 500 set to snap a nine-day win streak as investors watch for signs of trade war deescalation between the US and China.
The S&P 500 (^GSPC) dropped about 0.7%, while the Dow Jones Industrial Average (^DJI) moved down 0.6%. The tech-heavy Nasdaq Composite (^IXIC) dropped about 0.9% to lead the declines.
The US dollar (DX=F) also slid. Meanwhile, oil (CL=F, BZ=F) prices tumbled more than 2% amid expectations of a supply boost from OPEC+.
While stocks rallied recently over hints that China was willing to start trade talks, President Trump over the weekend said he has no plans to speak to his Chinese counterpart, President Xi, this week.
Nasdaq GIDS - Free Realtime Quote USD
As of 1:22:12 PM EDT. Market Open.
^IXIC ^DJI ^GSPC
'Why would I do that?': Trump again rules out a Powell ouster at the Fed
Skechers to be acquired by 3G Capital for $9 billion, stock soars 25%
Skechers (SKX) is going private.
On Monday, the footwear company announced it will be acquired by 3G Capital for $63 per share in cash, representing a roughly 30% premium on the stock and deal worth $9.4 billion..
Skechers stock soared over 25% on the news ahead of the opening bell.
"With a proven track-record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital," Skechers CEO Robert Greenberg stated in a press release. "Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth."
Greenberg will continue to stay on to lead the company, as will Skechers president Michael Greenberg and COO David Weinberg.
Tyson Foods beats quarterly profit estimates, sales flat year over year
Tyson Foods (TSN) stock dropped nearly 2% in premarket trading after the company missed quarterly revenue estimates.
Sales were flat year over year, the company reported Monday. Though Tyson beat earnings expectations and reaffirmed its annual revenue forecast.
Reuters reports:
Media stocks fall after Trump threatens 100% tariffs on foreign-shot movies
Netflix (NFLX), Disney (DIS) and other media stocks fell in early trade after President Trump vowed to slap 100% tariffs on all movies produced outside the US.
The duties will protect Hollywood, which is being "devastated" as other countries offer film producers incentives for shoots, Trump said in a post to Truth Social.
"The Movie Industry in America is DYING a very fast death," he wrote in the Sunday post. "This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!"
While Trump gave few details on how the tariffs will be implemented, the move is seen as a risk for the major media players, which all shoot film and TV projects in overseas locations.
Netflix (NFLX) fell more than 4%, while Walt Disney (DIS) stock dropped over 2%. Shares of Warner Bros. Discovery (WBD), Amazon (AMZN), and Paramount Global (PARA) also declined.
Reuters reports:
'Sell in May, go away': Why Wall Street isn't buying it this year
Yahoo Finance's Allie Canal reports:
Berkshire shares slip after Buffett says he'll bow out
Berkshire Hathaway stock (BRK-B, BRK-A) slipped in Monday's premarket after Warren Buffett said he will step down as CEO.
B-class shares were down about 2% to trade around $529 apiece at last check.
Investment legend Buffett told shareholders on Saturday that he plans to hand over the reins at Berkshire by the end of the year, as my colleague Myles Udland reports.
Buffett has put forward vice chairman Greg Abel — identified in 2021 as his potential successor — to replace him in a long-expected move.
Catch up here on Yahoo Finance's full coverage liveblog of the 2025 Berkshire annual shareholders meeting.
Oil drops, reaching four-year low for crude
Oil prices fell late Sunday night by over $2 a barrel, dropping below $60 for the first time in more than four years. OPEC+ is due to increase output, adding to supply concerns.
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