Wall Street slips as oil falls, Tech stock drags Nasdaq, S&P 500 ends 9-day winning streak
US stock futures pointed toward losses as Wall Street opened on Monday, with major indices retreating amid a decline in oil prices and a rally in gold. The broader market faced pressure as traders reacted to shifting dynamics in global commodities, geopolitical tensions, and concerns over economic growth.
The S&P 500 slipped 0.3%, ending a nine-day winning streak. The Nasdaq composite shed 0.5%, pressured by declines in major tech names. Meanwhile, the Dow Jones Industrial Average managed a 110-point gain, or 0.3%, by midday.
Market breadth within the S&P 500 leaned positive, but the index was dragged lower by weakness in heavyweight technology stocks. Apple dropped 3%, Nvidia declined 0.7%, and Tesla fell 3.8%.
Berkshire Hathaway tumbled 3.9% following Warren Buffett’s weekend announcement that he would step down as CEO by year-end after more than 60 years at the helm. Buffett will remain chairman of the board, providing some continuity at the $860 billion conglomerate.
Oil markets took a hit after OPEC+ said it will boost production by 411,000 barrels per day starting June 1. US benchmark crude fell 2.2% to $57.05 a barrel, extending a sharp decline this year amid concerns over slowing global demand. Many producers are now operating below profitability thresholds, adding to pressure in the energy sector. Exxon Mobil dropped 2.2%.
The broader market is still digesting the evolving effects of President Donald Trump’s escalating trade war. Although some of the most severe tariffs expected in April were delayed, measures targeting China have moved ahead, keeping uncertainty elevated.
“Uncertainty remains elevated and economic data will likely weaken in the coming months, meaning further bouts of volatility are likely,” said Ulrike Hoffmann-Burchardi, Chief Investment Officer for global equities at UBS Global Wealth Management.
That uncertainty clouds the Federal Reserve’s upcoming policy decision. The Fed is expected to hold interest rates steady Wednesday after three cuts in 2024. Inflation remains above the central bank’s 2% target, and the potential impact of ongoing trade tensions is a growing concern.
The US economy shrank 0.3% in the first quarter, marking the first contraction in three years. Despite that, consumer spending continues, and activity in the services sector remained in expansion territory in April, according to ISM data. Still, consumer confidence has wavered amid policy shifts and tariff threats.
Adding to the volatility, President Trump announced via Truth Social on Sunday that the US will impose a 100% tariff on films produced outside the country. Given that most films have multinational production, the implications remain unclear. Shares of Netflix fell 1.8% and Warner Bros. Discovery slid 1.1%.
There was some positive news: Skechers soared 24.6% after reports it would be taken private in a $9 billion deal by 3G Capital. Other shoemakers rose in tandem, with Crocs gaining 4.2% and Deckers Outdoor up 1.7%.
US Treasury yields inched higher, with the 10-year yield rising to 4.35% from 4.31% late Friday.
