S&P 500, Dow Snap 9-Day Rally as Trade Concerns and Fed Outlook Weigh on Markets
- Posted on May 06, 2025
- Stock Market
- By Samiat
S&P 500, Dow Snap 9-Day Rally as Trade Concerns and Fed Outlook Weigh on Markets
U.S. stocks pulled back on Monday, ending a nine-day winning streak for both the S&P 500 and Dow Jones Industrial Average as investors digested global trade tensions and awaited key guidance from the Federal Reserve's policy meeting later this week.Barring consumer staples, which remained flat, all sectors closed in the red, led by sharp declines in energy.
Trump’s Trade Tariff Comments Shake Media Stocks
Investor sentiment was rattled after President Trumpproposed 100% tariffs on movies made abroad. He instructed the Commerce Department and U.S. Trade Representative to initiate the process immediately.Impacted stocks:
Analysts at Wedbush Securities warned that Warner Bros. and Paramount face “significant risk” from the proposed tariffs. Derek Holt of Scotiabank called the plan “a self-imposed tax” that could backfire on U.S. studios.
Key Market Drivers
Top Gainers
Skechers USA surged 24%, making it the top gainer on the S&P 500. The sharp rise came after investment firm 3G Capital announced plans to acquire the footwear company and take it private.EQT Corporation rose 3.2%, boosted by an upgrade from UBS Securities, which shifted its rating to “Buy” and raised the price target to $64, citing improving fundamentals.
Delta Air Lines climbed 3% after Seaport Global Securitiesraised its price target from $50 to $65, highlighting strong travel demand and cost efficiencies.
Top Losers
Zimmer Biomet was the worst-performing stock on the S&P 500, plunging 12% after the company lowered its full-year earnings guidance and reported a decline in first-quarter earnings per share. Several analysts responded by cutting their price targets on the stock.ON Semiconductor dropped 8.4% following weaker-than-expected first-quarter earnings and revenue, disappointing investors and prompting bearish sentiment across the chipmaking space.
Tyson Foods declined 7.8% after missing Wall Street’s revenue expectations for the fiscal second quarter, citing a “legal contingency accrual” that weighed on results.
Berkshire Hathaway’s Class B shares fell 5.1%, while its Class A shares were down 4.9%. The selloff came after Warren Buffett announced plans to step down as CEO. Berkshire also reported lower earnings and slightly weaker year-over-year revenue in the first quarter.
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