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US STOCKS-S&P 500 snaps 9-session win streak after latest Trump tariff
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US STOCKS-S&P 500 snaps 9-session win streak after latest Trump tariff
May 26, 2025 1:30 AM

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Berkshire Hathaway ( BRK/A ) falls after Buffett to step down as CEO

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US service sector picks up in April

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Skechers jumps after $9 billion take-private deal

(Updates to US market close)

By Chuck Mikolajczak

NEW YORK, May 5 (Reuters) - The S&P 500 fell to snap its

longest streak of gains in 20 years on Monday as investors

assessed U.S. President Donald Trump's latest tariff

announcement ahead of the Federal Reserve's monetary policy

decision later this week.

On Sunday, Trump announced a 100% tariff on movies produced

outside the U.S. but provided no details on how such levies

would be implemented.

Stocks have been volatile since Trump announced his first

round of tariffs on April 2, with the S&P 500 initially dropping

nearly 15%, only to stabilize and climb for the last nine

straight sessions, its longest streak since 2004.

On Monday, Treasury Secretary Scott Bessent said Trump's

tariff, tax-cut and deregulation agenda would work together to

drive long-term investment to the U.S., adding markets could

overcome any short-term turbulence.

"Nine up days in the S&P 500 is hard to maintain," said

Art Hogan, chief market strategist at B Riley Wealth in Boston.

"We are starting to price in that eventuality of deals

being announced, but we're running out of daylight on that

because every week that goes by that we don't start cutting

deals we're doing economic damage."

According to preliminary data, the S&P 500

lost 35.47 points, or 0.62%, to end at 5,651.20 points,

while the Nasdaq Composite lost 138.72 points, or 0.73%,

to 17,839.01. The Dow Jones Industrial Average

fell 102.10 points, or 0.25%, to 41,215.33.

Several movie and television production stocks fell

sharply right after Trump's announcement, but subsequently pared

losses.

Netflix ( NFLX ) fell to snap an 11-session winning streak,

while Amazon.com ( AMZN ) and Paramount Global ( PARAA ) were

also weaker.

Energy was the worst performer of the 11 major S&P

sectors, after OPEC+ decided to speed up its output hikes,

causing concerns about more supply as demand remains uncertain.

Class B shares of Berkshire Hathaway ( BRK/A ) declined

after Warren Buffett said he will step down as CEO of the

conglomerate.

On the economic front, the Institute for Supply Management

survey showed the services sector's growth picked up in April,

while a measure of prices paid by businesses for materials and

services raced to the highest level in more than two years,

indicating tariffs were causing inflation pressures to build.

Investors will closely eye the Fed's policy announcement on

Wednesday, in which the central bank is largely expected to keep

interest rates unchanged. Commentary from Fed Chair Jerome

Powell will be scrutinized for signs of when the Fed will adjust

monetary policy.

Markets are pricing in about 75 basis points of rate cuts by

the Fed for 2025, with the first easing of at least 25 basis

points likely at the central bank's July meeting, according to

LSEG data.

Investors are also concerned about how tariffs may affect

corporate profitability. Tyson Foods ( TSN ) tumbled after the

meat packer missed quarterly revenue expectations.

However, Skechers surged after the footwear maker

agreed to be taken private by 3G Capital in a $9.4 billion deal.

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