4:11pm: Stocks cool off
Stocks took a step back on Monday, with all the major indexes ending the day in the red as investors paused to assess recent gains and looked ahead to new economic data.
The Dow dipped 99 points, or 0.2%, to finish at 41,219. The S&P 500 lost 36 points, or 0.6%, closing at 5,650. The Nasdaq fell 133 points, or 0.7%, wrapping up the session at 17,844.
Meanwhile, the small-cap Russell 2000 slipped 13 points, or 0.7%, to end at 2,007.
3:22pm: Stocks on the move
Apple Inc is returning to the U.S. investment-grade bond market for the first time in two years with a multi-part debt offering that includes a 10-year note priced around 70 basis points above Treasuries.
Berkshire Hathaway Inc shares fell 4.6% after the company confirmed Greg Abel will succeed Warren Buffett as CEO starting next year.
Skechers USA surged 25% after investment firm 3G Capital announced a $9 billion acquisition at a 30% premium.
Sunoco LP announced a $9.1 billion acquisition of Parkland Corp and will form a new publicly traded entity, SUNCorp, LLC.
Netflix Inc and Walt Disney Co shares fell after Donald Trump proposed a 100% tariff on overseas film productions to encourage domestic filmmaking.
Tesla Inc shares dropped amid political backlash in Europe over Elon Musk’s association with the Trump administration and falling sales in key markets.
Exxon Mobil Corp and Chevron Corp traded lower following a sharp oil price decline triggered by OPEC+'s decision to boost supply.
2:10pm: More ISM reactions
Jeffrey Roach, Chief Economist at LPL Financial, pointed out some bright spots in the latest ISM Services report.
New orders ticked up across several key industries like accommodation and food services, wholesale trade, and retail—suggesting that businesses are still seeing demand, even with ongoing trade uncertainty.
The overall services index rose to 51.6 in April, up slightly from 50.8 in March. Since anything above 50 signals growth, that’s a positive sign. New orders have now grown for ten straight months after a brief dip last June.
However, not everything was rosy. Employment in the services sector shrank for the second month in a row, and Roach warned that upcoming payroll numbers might take a hit—especially with expected government job cuts. Plus, inflation pressures are still hanging around, with prices paid reaching their highest level since January 2023.
"Inflation, especially within the services sectors, will put Fed policy makers in a tight spot for the coming meetings. Stagflation – a period of low or no growth coupled with sticky inflation – will keep the Fed from cutting rates this week," Roach noted.
"However, a slowing job market could ease demand-induced inflation throughout the balance of this year."
1:25pm: Monday's headlines
Warren Buffett, the Sage of Omaha and one of the most influential investors of the modern era, will retire from Berkshire Hathaway Inc (NYSE:BRK.A) at the end of this year, bringing a remarkable 60-year chapter in American capitalism to a close. Greg Abel will take over as chief executive of Berkshire Hathaway at the start of next year, following a unanimous vote by the company’s board.
Brent crude fell as much as 4.6% before trimming losses, amid concerns the alliance’s output increase could flood a weakening market already rattled by US–China trade tensions.
The Presiden’ts proposed tariffs on foreign-produced films entering the US pose a “significant amount of risk” to companies such as Disney, Warner Bros. Discovery, Paramount, Comcast’s NBCUniversal, Lionsgate, and Sony, according to Wedbush.
Apple Inc (NASDAQ:AAPL, ETR:APC) is planning to tap the US investment-grade bond market on Monday with a multi-part debt offering, marking the iPhone maker’s first corporate bond sale in two years, Bloomberg reported.
12:23pm: Markets hit pause
Markets are taking a bit of a breather after last week’s solid rally.
At midday, the Dow is up about 0.3%, showing some strength in blue-chip stocks. But the S&P 500 is slightly down, and the Nasdaq is off by 0.4%, suggesting tech and growth names are losing a bit of steam.
This mixed performance follows a strong week driven by optimism around trade deals and upbeat economic data. Today, though, it looks like investors are hitting pause—possibly waiting for more updates on trade talks and the Fed’s next move.
11:50am: Gold climbs
Gold prices climbed Monday as investors sought safety amid ongoing uncertainty around US-China trade talks and renewed geopolitical risks in Eastern Europe and the Middle East.
According to market analysis from Erkin Kamran, CEO of Traze, while President Donald Trump claimed China was keen to strike a deal, “Beijing reiterated its conditions for resuming talks, highlighting the absence of any imminent progress.”
This prolonged stalemate, along with a weaker US dollar, helped buoy the precious metal.
Looking ahead, investors are closely watching this week’s Federal Reserve policy meeting. Any dovish tone or signs of a slowing US economy could provide additional support for gold, though a stronger Fed stance may curb gains in the short term.
Still, Kamran emphasized that “economic uncertainty driven by Trump’s unpredictable tariff policy could continue to drive demand for gold.”
11:08am: Service sector expands in April
The U.S. services sector expanded modestly in April, with the ISM Services Index rising to 51.6 from 50.8 in March, signaling continued growth despite emerging challenges from trade tensions and rising costs.
Business activity remained in expansion territory at 53.7, although that marked a slowdown from March’s 55.9. New orders ticked up to 52.3, while employment remained in contraction but improved slightly. Supplier deliveries also quickened modestly, suggesting some resilience in supply chains.
Wells Fargo economists noted that “service-providers are by no means immune to tariffs, even if the impact is less direct than for manufacturers,” as the prices paid index surged to 65.1—its highest reading since early 2023. Seventeen of 18 industries reported higher prices.
Eleven service industries reported growth in April, while six—including farming—saw contraction. A farming-sector respondent blamed tariffs directly for the decline. Transportation and warehousing unexpectedly expanded, which Wells Fargo suggested “may reflect a last-ditch effort to move supplies and products ahead of the tariffs.”
Hiring remains a weak spot, with the report citing a “hiring freeze due to uncertainty of government grants” among some service providers.
10:36am: Week ahead
Wall Street’s attention will turn sharply toward Washington next week as the Federal Reserve holds its latest policy meeting against a backdrop of intensifying trade tensions and a full slate of corporate earnings.
Investor focus will center on Wednesday’s Federal Open Market Committee (FOMC) decision, where the Fed is widely expected to keep interest rates unchanged.
According to the CME FedWatch tool, markets are nearly certain the central bank will hold its benchmark rate steady for a third straight meeting.
On the economic front, UBS expects a slowdown in the services sector, forecasting that the ISM non-manufacturing index will fall to 50 in April. The bank also sees weak productivity in line with the recent GDP report, though jobless claims are expected to stabilize.
Meanwhile, first-quarter earnings season continues with key reports due from several major companies. Ford (F), Palantir (PLTR), AMD (AMD), Walt Disney (DIS), and Shopify (SHOP) are among the highlights in a busy week for corporate results.
9:50am: Stocks open lower
US stocks opened lower across the board on Monday.
The Dow dropped 189 points, or 0.5%, to 41,128. The S&P 500 slipped 47 points, or 0.8%, to 5,639. The tech-heavy Nasdaq Composite fell 155 points, or 0.9%, to 17,823. Meanwhile, the Russell 2000, which tracks smaller companies, declined 16 points, or 0.8%, to 2,004.
Looking ahead, UBS says next week’s market focus will shift back to the Fed—even as tariff headlines continue to swirl. New US tariff rules kicked in this week, including changes for packages from China and Hong Kong, plus new duties on auto parts. And with an investigation into semiconductor and pharmaceutical imports wrapping up soon, trade policy could stay in the spotlight.
As for the Fed, UBS doesn’t expect any policy changes at next week’s meeting. There’s no updated economic forecast this time around, and they think Chair Powell will stick to his usual tone. Still, with tariffs ramping up since January, expect plenty of questions during the press conference about how the Fed plans to balance inflation and employment going forward.
On the data front, UBS thinks services sector activity likely flatlined in April, while productivity may have remained sluggish—just like GDP. Jobless claims should ease a bit after being temporarily boosted by school holidays.
8:05am: Trump targets films
After a breathtaking rally that pushed the S&P 500 to its longest winning streak in over 20 years, US stock futures are cooling off this Monday—an early sign that investors might be tapping the brakes.
The mood has shifted to cautious as futures point lower across the board, with Dow futures down 0.7%, S&P 500 futures off 0.9%, and Nasdaq futures falling 1.1%.
Over the weekend, President Trump threw a wrench into already-fragile global trade dynamics by announcing a 100% tariff on films produced outside the US. That sudden move has hit media and entertainment stocks hard in premarket trading—Netflix, Disney, and Warner Bros. Discovery are all under pressure. With details still murky, investors are understandably spooked.
There’s also a bit of diplomatic tit-for-tat brewing. While Beijing acknowledged Washington’s call for renewed trade talks, it also made it clear that no negotiations will move forward unless all unilateral tariffs are lifted. That kind of standoffish tone is keeping markets uneasy.
And then there's the Federal Reserve, kicking off a two-day policy meeting tomorrow. No rate move is expected, but investors will be listening closely for any change in tone. After Friday’s unexpectedly strong jobs report, markets have dialed back bets on a June rate cut and now see July as more likely.
Terence Hove, financial markets strategist and consultant to Exness, summed it up this way: “While no changes in interest rates are expected, the Fed's guidance could affect the market as traders look for clues on how policymakers interpret the evolving trade and inflation landscape.”
In other words, it’s less about what the Fed does and more about what it says.
Elsewhere, oil prices are slipping again, amid concerns over slowing global growth and higher output from OPEC+.
Disney, Palantir, and AMD will report later this week, giving investors more data to chew on.
And don’t overlook today’s ISM Services PMI and Thursday’s jobless claims—both could offer fresh insight into how resilient the economy really is.