Stock Market Summary – May 06, 2025

The S&P 500 snapped a nine-day winning streak on Monday as investors wavered over global trade concerns. It shed 0.64% to close at 5,650.38, while the Nasdaq Composite dropped by 0.74% to end at 17,844.24; the Dow Jones Industrial Average lost 98.60 points, or 0.24%, to close at 41,218.83. Investors are concerned about tariff agreements between the U.S. and international trade partners. There was, however, an improved sentiment after reports that India had proposed zero tariffs on certain commodities on a reciprocal basis.

Trump’s announcement of a 100% tariff on foreign-produced films led to an initial drop in shares of Hollywood studios and streaming services. Although the president later softened his stance and agreed to meet with the industry, Netflix and Warner Bros. Discovery experienced continued losses, closing down 2%. Ford suspended its 2025 financial guidance due to potential supply chain disruption and potential tariffs, expecting a $2.5 billion impact from Trump’s tariffs this year.

OpenAI announced that it will remain within nonprofit control despite restructuring, amid pressure from Elon Musk and former employees. The statement comes in light of a lawsuit between Musk and the AI startup over transitioning the business into a for-profit organization.

Concerns about inflation saw Goldman Sachs lower its West Texas Intermediate crude price forecast for the second half of 2025 and 2026 to $56 per barrel. This follows the agreement by OPEC+ to increase production by 411,000 barrels per day in June, a reversal of higher prices that could help fight inflation.

Active management is making a comeback in the typically index fund-dominated equity exchange-traded fund (ETF) market. Actively run funds took 34% of the flows for the trading week ending April 25. As per Jon Maier from JPMorgan Asset Management, there is parity between active and passive funds, even though index funds still hold the larger share of total assets.