Stocks fell on Monday as market participants reacted to another set of proposed tariffs from President Donald Trump over the weekend as they trade ahead of the Federal Reserve's next policy meeting this week. The S&P 500 Index declined for the first time in 10 sessions and the tech-heavy Nasdaq Composite slipped nearly 0.75 % lower, while the Dow Jones Industrial Average climbed over 100 points intraday, but ultimately fell nearly 100 points.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Trump announced in a post in his social media platform Truth Social that he is authorizing the U.S. Department of Commerce to impose a 100% tariff on movies produced abroad, calling the tax incentives offered by foreign nations "a national security threat." It was unclear how the tariffs would be implemented; the duties could affect movies shown in theaters or purchased through streaming platforms.
Shares of major production companies including Netflix
"The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated," Trump wrote over the weekend. "This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!"
Trump also impacted investor optimism on Sunday regarding the current state of trade deal negotiations, telling reporters on Sunday that while the White House is in talks with many countries, "at the end of this, I'll set my own deals, because I set the deal, they don't set the deal."
Wall Street is also focusing on the Federal Reserve's two-day policy meeting that starts Tuesday. Traders are currently pricing in a 4.4% chance policymakers will cut interest rates in their new monetary policy decision on Wednesday, according to CME Group's Fedwatch tool, but markets could be impacted by further commentary from the central bank and Chair Jerome Powell regarding the potential impacts of Trump's tariffs on the economy.
U.S. Services Sector Activity rose in April, the Institute for Supply Management reported Monday, signaling that businesses are remaining strong despite rising inflation concerns stemming from Trump's tariffs. The headline PMI reading rose 0.8 points from March to 51.6 in April, marking the indexes tenth straight month of expansion; readings at or above the neutral level of 50 indicate expansion in a sector.
"April's change in indexes was a reversal of March's direction, with increases in three (New Orders, Employment and Supplier Deliveries) of the four subindexes that directly factor into the Services PMI. Of those four, only the Business Activity Index had a lower reading compared to March," said Steve Miller, chair of ISM Services Business Survey Committee, in a statement. "Regarding tariffs, respondents cirted actual pricing impacts as concerns, more so than uncertainty and future pressures. Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving."
In the News:
Berkshire Hathaway's
"Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows," UBS analyst Brian Meredith wrote in a note. "Operationally, we expect little change at BRK and the culture/strategy to remain unchanged under Abel."
Skechers USA
For Tuesday:
Market participants will turn their attention towards earnings reports from companies including Palantir Technologies
