Stock Market Update | Dow, S&P 500, NASDAQ News – May 05, 2025 at 02:06 PM

AI research company OpenAI has decided to retain nonprofit control over its operations. The company had been under pressure to convert into a for-profit entity, largely due to a dispute with co-founder Elon Musk over his own AI startup, xAI. However, the nonprofit announced it will remain in control and restructure into a public benefit corporation. OpenAI, valued at $300 billion and backed by Microsoft, will maintain its focus on AI research.

Donald Trump, current US President, has falsely claimed that gasoline prices have dropped below $2 per gallon in an effort to pressurize the Federal Reserve to lower interest rates. However, data from AAA shows that US drivers were paying on average $3.165 per gallon on Monday, a slight rise from last week. Despite this, Trump continues to boast about low gas prices on his social media platform, Truth Social.

Berkshire Hathaway’s CEO, Warren Buffet, has announced he is stepping down, causing the company’s shares to fall by 5%. Though he will remain as chairman, the decision has created a ripple effect in the market, causing some short-term volatility. Greg Abel will take over as CEO, promising to carry on Berkshire’s culture and patient value investing style.

Footwear company Skechers USA saw its shares surge by 24% after it announced a planned acquisition by 3G Capital for $63 per share. However, shares of the food-processing company Tyson Foods slipped by 7.8% following a slight miss on revenue targets for the second fiscal quarter.

Finally, Trump’s announcement of a 100% tariff on movies produced outside the US saw streaming stocks such as Netflix, Amazon, Paramount Global, and Warner Bros. Discovery drop by roughly 2%. The decision, announced via post on Truth Social, has been positioned as an attempt to revive the “dying” American movie industry.

Market indexes on day (Please note to clarify the real values with Dow, S&P, Nasdaq)

Automaker Ford is set to report its first-quarter earnings, and Wall Street estimates a 9.2% decrease in revenue compared to the previous year and a 96% dive in adjusted earnings per share. The focus is expected to be on the company’s 2025 guidance and the impact of Trump’s auto tariffs. Meanwhile, Adam Parker, founder of Trivariate Research, warns investors to not be too optimistic, saying that markets now are measurably “worse and more uncertain” than at the beginning of the year, despite recent comebacks.

Tech stocks CrowdStrike and Uber have been named among the best in the market by Ritholtz Wealth Management. Both have seen significant rallies and are claimed to be businesses that can beat a recession. Uber is the fifth-best-performing stock in the S&P 500 this year, up by 40%, and CrowdStrike is regarded as one of the premier cybersecurity companies globally.

Warren Buffett plans to step down as CEO of Berkshire Hathaway by year-end after six decades. Since taking over a failing textile company in 1965, Berkshire shares have skyrocketed by 5,502,284%, compared to the broad S&P 500 which rose by 39,054% during that period. Pershing Square CEO, Bill Ackman, predicts that Berkshire might increase its cash returns to shareholders once Buffett steps down, possibly through a dividend and more aggressive stock buybacks.