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S&P 500 Index Set to End 9-Day Rally Amid New Tariffs and Ahead of Rate Decisions

Barry Adams
05 May, 2025
New York City

Wall Street indexes declined in Monday's trading after the U.S. president unleashed another wave of tariffs.

The S&P 500 index fell 0.6%, and the Nasdaq Composite declined 0.7% amid fresh worries of another change in the U.S. trade policy.

Movie studio operators and streaming service providers led the decliners after Donald Trump announced 100% tariffs on foreign-made movies.

Investors turned cautious on Monday after benchmark indexes erased most of the tariff-driven losses over the last four weeks.

Last week, Wall Street indexes rebounded for the second consecutive week and erased April’s losses as investors reacted positively to quarterly results from leading tech and industrial companies.

Investors reviewed a flood of economic reports, including job market and GDP growth updates, and despite the tariff uncertainties, the U.S. job market expanded at a healthy pace, soothing the nerves of investors.

However, April’s increase in payrolls is likely to be revised sharply lower next month because the surveys were conducted in the second week of the month, and businesses still had not experienced the full brunt of the Trump administration’s tariff flip-flops.

Week Ahead

In the week ahead, investors are looking ahead to interest rate decisions from the Federal Reserve and the release of international trade data.

The U.S. Federal Reserve is expected to hold steady its key fed funds rate range between 4.25% and 4.5%, despite the growing pressure from the White House to lower rates at the upcoming meeting.

The Bank of England is widely expected to cut rates by 25 basis points to 4.25% on Thursday, and investors are anticipating two additional rate cuts totaling 50 basis points in the remainder of the year.

On the earnings front, investors anticipate results from Berkshire Hathaway, Marriott International, Costco Wholesale, Uber Technologies, Arm Holdings, Shopify, Walt Disney, ConocoPhillips, and Ford Motor Company.

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.7% to 5,646.96, the Nasdaq Composite edged down 0.7% to 17,850.61, and the Russell 2000 index was down 0.9% to 2,002.72.

The yield on 2-year Treasury notes edged lower to 3.82%, 10-year Treasury notes increased to 4.32%, and 30-year Treasury bonds advanced to 4.83%.

WTI crude oil decreased $0.96 to $57.33 a barrel, and natural gas prices edged higher by $0.01 to $3.64 a thermal unit.

Gold increased by $78.95 to $3,318.31 an ounce, and silver edged up by $0.54 to $32.54.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.54 to 99.49, and it traded at the lowest level since April 2022.

U.S. Stock Movers

Movie studios were under pressure after the U.S. president proposed a levy of 100% on movies made outside of the United States.

Warner Brothers Discovery declined 3.6% to $8.23, Walt Disney Company decreased 3.5% to $89.38, and Fox Corp. eased 0.4% to $49.27.

Howard Hughes Holdings jumped 7.5% to $72.50, and Bill Ackman-controlled Pershing Square acquired an additional stake in the company for $900 million.

The company will sell 9 million newly issued shares to Pershing Square, and the purchase price is a 48% premium over Friday's close.

After the latest infusion, Pershing Square's economic stake in the company will increase to 46.9% and voting stake to 40%.

In addition, Howard Hughes will pay Pershing Square a quarterly base fee of $3.75 million and a quarterly management fee that reflects changes in its market capitalization.

Europe Markets Lack Direction Ahead of Rate Decisions and Busy Week of Earnings and Economic Releases

Bridgette Randall
05 May, 2025
London

European markets diverged in Monday's trading, and investors awaited a busy week of earnings and economic data.

Benchmark indexes in Frankfurt advanced but fell in Paris, and financial markets were closed in London for a holiday.

Stock market indexes extended their rebound to the third week in a row amid positive earnings and hopes of a cooling of trade tensions between China and the U.S.

Investors are also hoping that the U.S. will extend the pause on tariffs on steel and aluminum imports from Europe beyond June.

The Bank of England is widely expected to cut rates by 25 basis points to 4.25% on Thursday, and investors are anticipating two additional rate cuts totaling 50 basis points in the remainder of the year.

The U.S. Federal Reserve is expected to hold steady its key fed funds rate range between 4.25% and 4.5%, despite the growing pressure from the White House to lower rates at the upcoming meeting.

Week Ahead

In Europe, investors are looking ahead to the release of the service sector activities, factory orders in Germany, France’s international trade data, and wholesale inflation in the eurozone.

Italy and the euro area are scheduled to release their retail sales reports, and Germany will report on construction, industrial production, and balance of trade as well.

Spain is scheduled to release its industrial production figures, and the U.K. will report on house prices, the Bank of England’s interest rate decision, and industrial and manufacturing production.

Italy is scheduled to release its industrial production data on Friday.

On the earnings front in Europe, investors are looking ahead to results from Ferrari, Phillips, Telenor, UniCredit, Novo Nordisk, BMW AG, Siemens Energy, Infineon Technologies, Commerzbank, Heidelberg Materials, and Swisscom.

Europe Indexes and Yields

The DAX index increased by 0.4% to 23,174.75, the CAC-40 index edged lower 0.4% to 7,737.89, and trading in London is closed on Monday.

The yield on 10-year German bonds inched higher to 2.52%, French bonds increased to 3.24%, UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.63%.

The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.60 Swiss cents.

Brent crude decreased $1.22 to $60.07 a barrel, and the Dutch TTF natural gas was higher by €0.14 to €32.76 per MWh.

Europe Movers

Luxury fashion stocks traded higher after China and the U.S. appeared to warm up to start trade negotiations.

Kering SA decreased 0.6% to €179.62, Hermes International edged up 0.2% to €2,435.0, and LVMH decreased 0.4% to €493.95.

Banks led broader averages higher ahead of earnings results this week.

UniCredit SpA decreased 0.8% to €52.22, Commerzbank jumped 1.9% to €24.04, and Intesa Sanpaolo SpA advanced 0.3% to €4.77.

Europe Markets Lack Direction Ahead of Rate Decisions and Busy Week of Earnings and Economic Releases

Bridgette Randall
05 May, 2025
London

European markets diverged in Monday's trading, and investors awaited a busy week of earnings and economic data.

Benchmark indexes in Frankfurt advanced but fell in Paris, and financial markets were closed in London for a holiday.

Stock market indexes extended their rebound to the third week in a row amid positive earnings and hopes of a cooling of trade tensions between China and the U.S.

Investors are also hoping that the U.S. will extend the pause on tariffs on steel and aluminum imports from Europe beyond June.

The Bank of England is widely expected to cut rates by 25 basis points to 4.25% on Thursday, and investors are anticipating two additional rate cuts totaling 50 basis points in the remainder of the year.

The U.S. Federal Reserve is expected to hold steady its key fed funds rate range between 4.25% and 4.5%, despite the growing pressure from the White House to lower rates at the upcoming meeting.

Week Ahead

In Europe, investors are looking ahead to the release of the service sector activities, factory orders in Germany, France’s international trade data, and wholesale inflation in the eurozone.

Italy and the euro area are scheduled to release their retail sales reports, and Germany will report on construction, industrial production, and balance of trade as well.

Spain is scheduled to release its industrial production figures, and the U.K. will report on house prices, the Bank of England’s interest rate decision, and industrial and manufacturing production.

Italy is scheduled to release its industrial production data on Friday.

On the earnings front in Europe, investors are looking ahead to results from Ferrari, Phillips, Telenor, UniCredit, Novo Nordisk, BMW AG, Siemens Energy, Infineon Technologies, Commerzbank, Heidelberg Materials, and Swisscom.

Europe Indexes and Yields

The DAX index increased by 0.4% to 23,174.75, the CAC-40 index edged lower 0.4% to 7,737.89, and trading in London is closed on Monday.

The yield on 10-year German bonds inched higher to 2.52%, French bonds increased to 3.24%, UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.63%.

The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 82.60 Swiss cents.

Brent crude decreased $1.22 to $60.07 a barrel, and the Dutch TTF natural gas was higher by €0.14 to €32.76 per MWh.

Europe Movers

Luxury fashion stocks traded higher after China and the U.S. appeared to warm up to start trade negotiations.

Kering SA decreased 0.6% to €179.62, Hermes International edged up 0.2% to €2,435.0, and LVMH decreased 0.4% to €493.95.

Banks led broader averages higher ahead of earnings results this week.

UniCredit SpA decreased 0.8% to €52.22, Commerzbank jumped 1.9% to €24.04, and Intesa Sanpaolo SpA advanced 0.3% to €4.77.

U.S. Movers: Berkshire Hathaway, Chevron, Exxon Mobil, Terex, T. Rowe

Scott Peters
05 May, 2025
New York City

Berkshire Hathaway Inc. advanced 1.8% to $539.80 after the diversified conglomerate with businesses in insurance, freight rail transportation, and utility sectors reported first-quarter 2025 results.

Revenue edged down to $89.72 billion from $89.87 billion, net earnings plunged to $4.60 billion from $12.70 billion, and earnings per share fell to $2.13 from $5.88 a year ago.

Exxon Mobil Corp. eased 0.06% to $106.15 after the energy company reported first-quarter 2025 results.

Revenue edged up to $83.13 billion from $83.08 billion, net income declined to $7.71 billion from $8.22 billion, and diluted earnings per share fell to $1.76 from $2.06 a year ago.

Cash flow from operating activities was $13.0 billion, and free cash flow was $8.8 billion.

During the quarter, the company returned $9.1 billion to shareholders, of which $4.3 billion was in dividends and $4.8 billion in share repurchases.

“This year, we're starting up 10 advantaged projects that are expected to generate more than $3 billion of earnings in 2026 at constant prices and margins,” the company said in a release to investors.

Exxon proposed a second-quarter dividend of 99 cents per share, payable on June 10 to shareholders on record as of May 15.

Chevron Corp. eased 0.07% to $138.40 after the energy company reported first-quarter 2025 results.

Revenue declined to $47.61 billion from $48.72 billion, net income plunged to $3.50 billion from $5.50 billion, and diluted earnings per share fell to $2.00 from $2.97 a year ago.

“Included in the quarter was a net loss of $175 million related to legal reserves and a tax charge due to changes in the energy profits levy in the United Kingdom that were partially offset by the fair value measurement of Hess Corporation shares,” the company said in a release to investors.

Foreign currency effects decreased earnings by $138 million, the company added in the statement.

Over the last three years, Chevron has returned more than $78 billion of cash to shareholders, and during the first quarter, the company returned $6.9 billion of cash, including share repurchases of $3.9 billion and dividends of $3.0 billion.

The energy company proposed a quarterly dividend of $1.71 per share, payable on June 10 to stockholders on record as of May 19.

T. Rowe Price Group Inc. inched down 0.05% to $91.60 after the investment management company reported first-quarter 2025 results.

Revenue edged up to $1.76 billion from $1.75 billion, net income declined to $490.5 million from $573.8 million, and diluted earnings per share fell to $2.15 from $2.49 a year ago.

Quarter-end assets under management increased 1.6% to $1.57 trillion from $1.54 trillion a year earlier.

The company returned $506 million to shareholders in the quarter from the recurring quarterly dividend and stock repurchases.

Terex Corp. traded flat at $39.83 after the industrial equipment provider reported first-quarter 2025 results.

Net sales declined to $1.23 billion from $1.29 billion, operating profit plunged to $111 million from $163 million, and earnings per share fell to 83 cents from $1.74 a year ago.

The company guided fiscal 2025 net sales to range between $5.30 billion and $5.50 billion, compared to $5.13 billion in 2024, and earnings per share to be between $4.70 and $5.10, compared to $4.96 a year earlier.