Market Recap: Wall Street Snaps Historic Winning Streak as Investors Eye Fed Meeting

Major Indexes Pull Back After Nine-Day Rally

U.S. stock markets retreated on Monday, May 5, 2025, ending what had been the longest winning streak for the S&P 500 in over two decades. After nine consecutive days of gains that had completely erased losses from President Trump’s April tariff announcements, investors took a breather ahead of this week’s Federal Reserve meeting.

The S&P 500 declined 0.13% to close at 5,679.23, while the tech-heavy Nasdaq Composite fell 0.19% to 17,944.13. The Dow Jones Industrial Average bucked the trend, rising 0.27% to 41,430.01, supported by gains in financial and industrial stocks.

“After such a powerful rally, it’s natural to see some consolidation,” said Ryan Dykmans, chief investment officer at Dunham & Associates Investment Counsel. “We do see this run up as being more based on excitement than actual, solid fundamentals.”

Oil Prices Plummet as OPEC+ Boosts Production

In commodity markets, oil prices tumbled more than 4% after OPEC+ agreed to increase production for a second consecutive month. U.S. crude fell to $55.80 per barrel, while global benchmark Brent dropped to $58.90. This marks a more than 20% decline in oil prices year-to-date, potentially providing relief for consumers but pressuring energy stocks.

Major Stock Movers: Buffett Announcement Shakes Markets

The day’s biggest corporate news came from Berkshire Hathaway (BRK.A, BRK.B), which saw shares tumble over 4% after legendary investor Warren Buffett announced he would step down as CEO at the end of the year. The stock had recently hit an all-time high before today’s pullback.

Skechers (SKX) was the day’s standout performer, soaring nearly 25% after agreeing to be taken private by investment firm 3G Capital in a deal valued at approximately $9.4 billion.

Netflix (NFLX) shares declined following President Trump’s announcement of a 100% tariff on movies made outside the United States, raising concerns about the streaming giant’s international production costs.

Gold miners including Newmont (NEM) gained as gold prices surged 2.54% to $3,325.80 per ounce, reflecting investors’ flight to safe-haven assets amid ongoing trade uncertainties.

Among tech stocks, Advanced Micro Devices (AMD) rose 3.05% ahead of its earnings report scheduled for Tuesday. Palantir Technologies (PLTR) edged up 0.34% as investors awaited its quarterly results due after today’s market close.

Upcoming Market Events: Fed Meeting and Earnings Season

All eyes are now on the Federal Reserve’s two-day policy meeting beginning Tuesday. While the CME Group’s FedWatch tool indicates just a 3.2% chance of a rate cut, investors will closely analyze any commentary from Fed Chair Jerome Powell regarding economic outlook amid heightened trade tensions.

This week also brings a packed earnings calendar with several market-moving companies set to report. Monday’s notable reporters include ON Semiconductor (ON), BioNTech (BNTX), Palantir Technologies (PLTR), and Ford Motor Company (F).

Later in the week, investors will hear from Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) on Tuesday, followed by Disney (DIS), Uber (UBER), and Arm Holdings (ARM) on Wednesday. Thursday brings reports from Shopify (SHOP), Coinbase (COIN), and DraftKings (DKNG).

Trade Tensions Remain Key Market Driver

Despite the recent market recovery, trade tensions continue to loom large. Investors have been encouraged by reports that Chinese authorities are evaluating the possibility of starting trade negotiations with the U.S., according to The Wall Street Journal. However, no formal trade deals have been announced, and analysts caution that markets could face renewed volatility when the 90-day tariff pause expires in July.

As the week progresses, market participants will balance corporate earnings results against macroeconomic concerns, with the Fed’s commentary likely to set the tone for trading in the days ahead.