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Russian (RU) Updated Mon, May 5, 2025, 8:36 AM 2 min read
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US stocks fell 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 0.7%, eyeing a cooldown from its longest winning streak in over 20 years. The Dow Jones Industrial Average (^DJI) moved 0.6% lower, while the tech-heavy Nasdaq Composite (^IXIC) dropped about 0.8% 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.
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 to be put into process immediately, though he offered little detail on how the duties would hit.
Looking ahead, Wall Street’s attention turns to the Federal Reserve. The central bank kicks off a two-day policy meeting on Tuesday with the Fed expected to hold steady with current rates, even with Trump amping up pressure on the Fed and Chair Jerome Powell in recent weeks.
Markets will watch for Monday’s manufacturing activity data and on Thursday’s jobless claims report, both key indicators of the US economic outlook.
Berkshire Hathaway (BRK-B, BRK-A) stock dropped about 3% in premarket trading after longtime CEO Warren Buffett said he will step down by the end of the year.
On the earnings front, this week sees earnings season continues to roll on, with high-profile reports expected from Ford (F), Palantir (PLTR), Disney (DIS) and AMD (AMD) set to roll in this week.
LIVE 8 updates
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 -day win streak as investors await any hopeful sign 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 prices tumbled more than 2% over 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.
'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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