Market Recap: S&P 500 Snaps 9-Day Winning Streak Amid Trade Tensions and Fed Meeting Anticipation

Based on the information gathered, I’ll now create a comprehensive market recap article for May 5, 2025.

Major Indexes Pull Back After Extended Rally

The U.S. stock market retreated on Monday, May 5, 2025, as the S&P 500 snapped its longest winning streak in two decades. After nine consecutive days of gains, the benchmark index fell approximately 0.2% to close at 5,674.73. The Dow Jones Industrial Average bucked the trend, rising 0.2% to 41,411.42, while the tech-heavy Nasdaq Composite declined 0.3% to 17,927.32.

Today’s pullback comes after a remarkable recovery period that saw the S&P 500 reclaim all losses incurred since April 2, when President Donald Trump announced retaliatory tariffs that sparked market concerns. Despite today’s decline, the major indexes remain significantly higher than they were at the beginning of the trade tensions.

“We do see this run up as being more based on excitement than actual, solid fundamentals or an actual change,” said Ryan Dykmans, chief investment officer at Dunham & Associates Investment Counsel. This sentiment reflects the cautious optimism that has characterized recent market activity.

Oil Prices Continue to Slide Following OPEC+ Decision

Energy stocks faced pressure today as oil prices extended their recent decline. U.S. crude oil futures fell more than 4% on Sunday after OPEC+ agreed to increase production for a second consecutive month. The organization, led by Saudi Arabia, plans to boost output by 411,000 barrels per day in June, following a similar increase announced for May.

The decision has pushed oil prices down more than 20% year-to-date, with U.S. crude trading around $55.80 per barrel and global benchmark Brent at approximately $58.90 per barrel. This continued pressure on energy prices could have significant implications for inflation and consumer spending in the coming months.

Investors Eye Federal Reserve Meeting and Earnings Reports

Market participants are closely watching the Federal Reserve’s two-day policy meeting scheduled to begin tomorrow. While the CME Group’s FedWatch tool indicates just a 3.2% chance of a rate cut, traders will be scrutinizing any commentary from Fed Chair Jerome Powell regarding the economic outlook, especially given the heightened uncertainty stemming from ongoing trade tensions.

On the earnings front, several notable companies reported results today, including On Semiconductor and Tyson Foods. However, the spotlight is on Palantir Technologies (PLTR), which is set to release its first-quarter earnings after the market close. The data analytics company has been the best-performing stock in the S&P 500 this year, with a year-to-date gain of 57%. Palantir shares were trading slightly higher today at $124.36, near their all-time high.

Notable Stock Movers

Among individual stocks, several companies made significant moves today:

– Skechers U.S.A. (SKX) led the gainers, surging 24.4% following strong quarterly results.
– Tesla (TSLA) declined 2.5% to $280.18 amid broader concerns about potential tariff impacts on electric vehicle manufacturers.
– Nvidia (NVDA) showed resilience, slipping just 0.14% to $114.34 despite the tech sector’s overall weakness.
– Lucid Group (LCID) fell 5.5% to $2.39, continuing its challenging year.
– Berkshire Hathaway (BRK-A, BRK-B) shares dropped over 4% following the company’s annual meeting over the weekend.

Looking Ahead: Key Earnings and Economic Events

This week promises to be eventful for market participants, with several high-profile earnings reports scheduled. Tuesday will see results from Advanced Micro Devices (AMD) and Super Micro Computer (SMCI), while Wednesday brings highly anticipated reports from Disney (DIS), Uber (UBER), and Occidental Petroleum (OXY).

Later in the week, investors will focus on reports from Shopify (SHOP), ConocoPhillips (COP), and Coinbase (COIN) on Thursday. These earnings releases, combined with the Federal Reserve’s policy decision, could significantly influence market direction for the remainder of the week.

Trade Negotiations Remain in Focus

Recent market gains have been partly fueled by increasing hopes for a U.S. trade deal with major trading partners. Chinese authorities have indicated they’re evaluating the possibility of starting trade negotiations with the U.S., and a report by The Wall Street Journal suggested that Beijing is open to trade talks.

However, no formal trade agreements have been announced, and analysts caution that market volatility could return if substantial progress isn’t made before the 90-day tariff pause ends in July. The ongoing uncertainty surrounding international trade relations continues to be a key factor influencing investor sentiment and market performance.

As we move further into May, market participants will be closely monitoring developments in trade negotiations, Federal Reserve communications, and corporate earnings reports for clues about the market’s next major move.