Wall Street Fluctuates Amid Trade War Concerns

On Monday, the stock market in the United States experienced a mixed reaction as President Donald Trump reignited fears regarding the ongoing global trade war by announcing new tariffs. By midday, the S&P 500 index had decreased by 0.3%, while the Dow Jones Industrial Average managed a slight increase of 0.3%. Conversely, the Nasdaq Composite saw a dip of 0.5%.

Key Market Movements

The early trading session revealed significant fluctuations:

• At 10:03 AM ET, the Dow Jones fell by 73.36 points (0.17%) to 41,245.64.
• The S&P 500 dropped 30.24 points (0.54%) to 5,656.43.
• The Nasdaq was down 94.25 points (0.52%) to 17,883.48.

Upon the market’s opening, the Dow had already lost 144.1 points (0.35%) to settle at 41,173.38. The S&P 500 also fell, losing 31.4 points (0.55%) to 5,655.32, while the Nasdaq experienced a decline of 160.7 points (0.89%) to 17,817.014.

New Tariffs Spark Concerns

In a surprising move, President Trump declared a 100% tariff on films produced outside the United States, intensifying worries about the implications of a potential global trade war. Investors are keenly observing the situation, particularly with the Federal Reserve set to announce its monetary policy later this week, which is anticipated to keep interest rates unchanged. Comments from Fed Chair Jerome Powell on Wednesday could shed light on future rate adjustments.

Economic Indicators

On the economic front, a recent ISM survey revealed that activity in the services sector improved, reaching 51.6 in April. Meanwhile, in the bond market, the yield on the 10-year Treasury rose slightly to 4.35% from 4.31%.

Stock Reactions to Tariffs

The announcement of the 100% tariff had immediate repercussions on several entertainment stocks:

• Netflix saw a drop of 2.2%.
• Amazon.com fell by 1.9%.
• Warner Bros. Discovery experienced a 1.3% decline.
• Paramount shares slipped by 1.4%.

Additionally, Berkshire Hathaway, led by investor Warren Buffett, saw a significant decline of 6.2% following his announcement to step down as CEO. Tyson Foods shares plummeted by 8.1% due to missed quarterly revenue targets, while Skechers stock surged by 24% after agreeing to be acquired by 3G Capital in a $9.4 billion deal.

Commodities Overview

In the commodities market, gold prices rose by over 2% as the U.S. dollar weakened and safe-haven demand increased. By 9:44 AM ET, spot gold climbed 2.3% to $3,315.62 an ounce, while U.S. gold futures were up 2.5% at $3,324.50.

Other precious metals also saw movement:

• Spot silver increased by 1.3% to $32.39 an ounce.
• Platinum gained 0.4% to $963.76.
• Palladium dipped 0.7% to $947.15.

Oil Market Declines

Crude oil prices fell as OPEC announced a production increase despite ongoing oversupply issues. For the first time since 2020, Brent crude briefly dropped below $60 per barrel, concluding the day down 1.5% at $60.37. Meanwhile, West Texas Intermediate decreased by 1.7%, settling at $57.29 per barrel.

As investors navigate the complexities of the global market, the impact of geopolitical developments continues to shape trading dynamics. Stay tuned for more updates as the situation unfolds.