May 5, 2025

Midday Market Roundup for Monday, May 5, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Monday, May 5, 2025:

1. U.S. Markets Mixed as Tariff and Fed Uncertainty Loom

Major U.S. equity indexes were mostly lower at midday as investors weighed ongoing tariff concerns and anticipated this week’s Federal Reserve decision on interest rates, a crucial factor that could significantly influence market dynamics. The S&P 500 and Nasdaq slipped, while the Dow Jones Industrial Average managed a modest gain. Berkshire Hathaway shares fell after Warren Buffett announced he would step down as CEO by year-end, with Greg Abel set to take over. Meanwhile, Netflix and other streaming stocks declined after President Trump announced a 100% tariff on foreign-produced films to support domestic studios. Investors are closely watching Fed Chair Jerome Powell’s upcoming remarks for signals on inflation and job growth policy (CNBC; Investopedia).

2. Oil Prices Plunge as OPEC+ Boosts Output

Oil futures dropped sharply after OPEC+ nations announced a second consecutive monthly production hike, responding to waning demand amid slower global economic growth. Brent crude prices fell below $80 per barrel, and analysts suggest continued oversupply could push prices even lower in the coming months. While lower oil prices may relieve consumers facing higher costs from tariffs, they also reflect concerns about a cooling global economy. However, these lower prices could potentially stimulate economic activity and provide relief to businesses and consumers worldwide (Morningstar/Dow Jones; DTN Progressive Farmer).

3. Global Economy Feels the Drag from U.S. Tariffs

The global economy shows signs of strain from President Trump’s tariffs, which have increased costs for businesses and consumers worldwide. According to Reuters, companies are revising spending strategies, and global trade flows are slowing. The S&P Global U.S. Manufacturing PMI revealed subdued output and rising inflation due to higher imported input prices. The Bank of England is expected to cut rates later this week as tariffs weigh on U.K. growth, while global tech earnings forecasts have been trimmed in response to macro uncertainty (Reuters; S&P Global).

4. Jobs Data Steady, but Inflation and Services in Focus

The U.S. economy added 177,000 jobs in April, beating expectations and helping to support market sentiment late last week. However, inflation expectations remain elevated, and the ISM Services PMI report due later today will be closely watched for further signs of economic strength or weakness. Service sector data worldwide is also being released, providing updated guidance on global growth and inflation trends. Analysts expect the Federal Reserve to keep rates on hold at this week’s meeting, but markets will be attentive to any signals about future policy direction (U.S. News; S&P Global).

Sources

Disclosure:
The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

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Midday Market Roundup for Monday, May 5, 2025

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