Market Recap: U.S. Stocks Slip After Rally; Fed Rate Decision in Focus


U.S. stocks pulled back on May 5 after a nine-day rally. The S&P 500 dropped 0.6%, Nasdaq 0.7%, and Dow 0.2%, as markets reacted to renewed trade tensions and falling oil prices. President Trump's new 100% tariff on foreign-made films hit media stocks like Netflix and Amazon. Meanwhile, OPEC+ announced a June output hike, driving crude prices to a four-year low of $57.13, dragging energy shares like Exxon down.


Attention now turns to the Federal Reserve's policy meeting. While rates are expected to hold steady, market forecasts differ on possible cuts later in 2025. Strong job data and concerns over inflation from tariffs give the Fed room to pause. In corporate news, Berkshire Hathaway fell 5.1% after Warren Buffett’s retirement announcement, while Skechers soared 24.3% after a $9B buyout deal.