Damian J. Troise, AP Business Writer
NEW YORK (AP) – Oil prices fell to their four-year lows as stocks fell in Monday morning trading on Wall Street, with OPEC+ Group announced plans to increase production.
The S&P 500 fell 0.3%. The benchmark index is off the 9th straight gain.
The Dow Jones industrial average rose 52 points (0.1%) as of 10:59am. Nasdaq composites fell by 0.5%.
Within the S&P 500 index, there was more profit than the losers, but the market was overwhelmed by the losses of technology stocks and other large companies. Apple slumped to 3.1%, while Chipmaker Nvidia fell 0.8%. Tesla fell 3.7%.
Berkshire Hathaway fell 4.8%. Legendary investor Warren Buffett announced over the weekend that he would step down as CEO by the end of the year after 60 years of helm. Buffett is still chairman of the board.
OPEC+ Group, eight oil producers, announced that it will increase 411,000 barrels per day over the weekend as of June 1.
US crude oil prices fell 2.6% per barrel to $56.75. Many producers are no longer able to make a profit if oil falls below $60. Prices drop sharply throughout the year than worrying about a slower economy. The energy company has fallen. Exxon Mobil lost 2.6%.
The market is off from another victory week as it absorbs tariff shocks and the spread of the trade war. President Donald Trump has imposed tariffs on a wide range of imports, causing global retaliation. Many of the more serious tariffs that were supposed to come into effect in April were delayed by three months, with a notable exception to tariffs on China.
Uncertainty about the impacts from current and future tariffs continues to be carried over to the markets and the economy, but delays have provided some relief to Wall Street. That uncertainty will overshadow the Federal Reserve meeting this week.
The Fed is expected to stabilize benchmark interest rates on Wednesday. Before taking a more cautious attitude, we lowered our rating three times in 2024. The central bank was concerned that inflation was stubbornly hovering just above the target rate of 2% during the easing. Concerns about a relapse of inflation have only grown amid a global trade war caused by Trump’s tariff policies.
The economy has shown some indications that it feels uncertain about its impact from tariffs and Trump’s policies. The US economy shrunk by 0.3% in the first quarter, marking its first decline in three years.
The broader economy still has some resilience. Consumers have become more cautious, but they still continue to spend. According to a survey by the Supply Management Institute, economic activity in the services sector continued to expand in April.
The service sector survey and latest consumer trust updates also reflect growing concerns about the direction of the economy. Trump’s rapidly changing trade policies have dominated the Fed and markets.
Customs duties are imposed, and sometimes it is routinely withdrawn or delayed. The approach being addressed has lost businesses, families and economists by trying to predict where the economy is heading and plan accordingly.
The latest Salvo in the trade war from Trump came on Sunday night with a post on his true social platform. He said that films have allowed 100% tariffs on films produced outside the US, as it is common for films to include production in multiple locations around the world.
Netflix fell 1.8%, while Warner Bros. Discovery fell 1.1%.
The Ministry of Finance will rise. Treasury yields rose to 4.35% from 4.31% on Friday.
AP business writers Jiang Junzhe and Matt Ott contributed to this story.
Original issue: May 5, 2025 10:23am EDT
