U.S. stock index futures weakened on the afternoon of May 6: Uncertainty surrounding trade negotiations and Trump's comments on tariffs caused a broad decline across the futures of the three major indices.

Taiwan • Business • 05/06 11:06
U.S. stock index futures weakened on the afternoon of May 6: Uncertainty surrounding trade negotiations and Trump's comments on tariffs caused a broad decline across the futures of the three major indices.

On May 6, 2025, U.S. stock index futures fell across the board at 4:35 PM local time in Taipei. Dow Jones Industrial Average futures dropped 243 points, S&P 500 futures fell 41 points, and Nasdaq 100 futures declined 200.25 points. The market was affected by uncertainties in U.S.-China trade negotiations, Trump's comments on tariff policies, and the Federal Reserve's interest rate decision meeting, causing investors to take a wait-and-see approach, putting pressure on the futures markets.

Key Updates

05/07 05:02

Wall Street's investor Paul Tudor Jones has warned: Even if Trump reduces tariffs, U.S. stocks could still reach new lows, and the Fed's decision not to cut interest rates increases market pressure.

Wall Street investor Paul Tudor Jones warned during a CNBC interview on May 6 that even if U.S. President Trump reduces tariffs on Chinese goods to 50%, the U.S. stock market could still reach new lows. Jones pointed out that the combination of Trump's high tariff policy and the Federal Reserve's reluctance to cut interest rates creates dual pressure that is unfavorable to the market. This statement has attracted market attention, especially as the Federal Reserve is about to announce its interest rate decision, as investors closely watch policy directions and trade developments.

05/07 03:06

U.S. stock futures rebound: Dow Jones Index rises 264 points to 34,182 points, as the market stabilizes ahead of the Federal Reserve's interest rate decision.

In the early trading session on May 7, 2025 (Taipei Time), U.S. stock index futures rose. Dow Jones Industrial Average futures rose 264 points to 41,182, S&P 500 futures rose 41 points to 5,666.75, and Nasdaq 100 futures climbed 167 points to 20,043.5. This rebound happened ahead of the Federal Reserve's interest rate decision announcement, as the market expects rates to remain unchanged, indicating signs of short-term stabilization in investor sentiment.

05/06 21:30

Small investors increase their investments in Berkshire despite the trend; Buffett's announcement to step down has not shaken confidence.

On May 5, 2025, Berkshire Hathaway's stock price fell by more than 5%, marking the third-largest single-day drop in the past five years. Nevertheless, small investors saw a net inflow of $24.4 million into Berkshire's Class B shares that day, setting the highest single-day record since 2016. This phenomenon occurred following Buffett's announcement that he would step down as CEO at the end of the year, with Greg Abel succeeding him, indicating that small investors' long-term confidence in Berkshire was not affected.

05/06 15:03

The three major U.S. stock indexes dropped: Investors worry about the impact of the Fed's interest rate decisions and Trump's tariff policies.

On May 6, 2025, the three major U.S. stock market indices fell in early trading as the market was uneasy about the uncertainty surrounding the Federal Reserve's interest rate decisions and Trump's new tariff policy. The Dow Jones Industrial Average dropped 230 points, the S&P 500 fell 0.9%, and the Nasdaq declined 1.1%. Technology and automotive stocks were under pressure, with Tesla down 2.3%, TSMC ADR dropped over 3%, and Ford down 0.8% due to withdrawing its financial guidance. Evgo's stock price soared 32% after its earnings report exceeded expectations.

05/06 13:30

Top 10 Events to Watch in the U.S. Stock Market on May 6, 2025: The Impact of Trump's Tariff Policy and Market Dynamics Ahead of the Federal Reserve Meeting

On May 6, 2025, the U.S. stock market fell ahead of the Federal Reserve's interest rate decision meeting, affected by President Trump's new tariff policies. Several companies released earnings reports, with some adjusting their full-year outlook due to trade uncertainties. Ford withdrew its financial guidance, estimating a tariff loss of $1.5 billion; DoorDash announced a merger, with its stock price dropping 5%; Dover announced the acquisition of Sikora; Palantir raised its revenue forecast, yet its stock price fell by 8%; Clorox lowered its sales forecast; Marriott lowered its earnings forecast. AMD and other companies released earnings reports, and U.S. consumer credit unexpectedly declined in March.

05/06 11:06

U.S. stock index futures weakened on the afternoon of May 6: Uncertainty surrounding trade negotiations and Trump's comments on tariffs caused a broad decline across the futures of the three major indices.

On May 6, 2025, U.S. stock index futures fell across the board at 4:35 PM local time in Taipei. Dow Jones Industrial Average futures dropped 243 points, S&P 500 futures fell 41 points, and Nasdaq 100 futures declined 200.25 points. The market was affected by uncertainties in U.S.-China trade negotiations, Trump's comments on tariff policies, and the Federal Reserve's interest rate decision meeting, causing investors to take a wait-and-see approach, putting pressure on the futures markets.

05/06 01:01

U.S. stocks closed down across the board: Berkshire Hathaway declined 5.12% following Buffett's announcement of retirement, TSMC ADR dropped 1.61%, and trade war tensions persist.

On May 6, 2025, major U.S. stock indices closed lower across the board, ending a multi-day rally. The market was affected by the escalation of the U.S.-China trade war, corporate earnings reports revealing tariff pressures, and Warren Buffett's announcement that he will retire at the end of the year. Berkshire Hathaway's stock dropped 5.12%, TSMC's American Depositary Receipts (ADR) fell 1.61%, and tech stocks such as Apple and Netflix also faced pressure. Although Trump indicated the possibility of reaching a partial trade agreement, the market's reaction was muted, and risk aversion sentiment heightened.

05/05 22:00

U.S. stocks fell on Monday: OPEC+ increased production, causing oil prices to plummet, with energy stocks taking the biggest hit, as Trump's trade policy and the Federal Reserve meeting drew attention.

The U.S. stock market closed lower on May 5, ending the S&P 500's nine-day streak of gains. OPEC+ announced an increase in oil production of 400,000 barrels per day starting in July, leading to a drop in oil prices and a setback for energy stocks. Trump proposed imposing a 100% tariff on foreign films, causing unease in the market. Investors are focusing on the Federal Reserve meeting on May 6 and 7, seeking guidance on interest rate policy.

05/05 18:32

On May 5, 2025, the U.S. stock market experienced a pullback as the Dow Jones Industrial Average and S&P 500 indices declined due to Trump's tariff policy.

On May 5, 2025, after nine consecutive trading days of gains, the U.S. stock market pulled back, with the Dow Jones Industrial Average falling by 0.28% and the S&P 500 Index slightly rising by 0.06%. The market was affected by President Trump's announcement of a 100% tariff on films produced overseas, escalating trade tensions. Investors are focused on the Federal Reserve's interest rate decision on May 7, which is expected to remain unchanged. The stock prices of Netflix, Warner Bros. Discovery, and Disney fell, while Skechers' stock price surged by 25% due to acquisition news.

05/05 18:00

Michael Wilson, Chief Strategist at Morgan Stanley: U.S. stocks show strong resilience, recommends investing in high-quality growth stocks and large-cap companies.

Morgan Stanley's chief strategist Mike Wilson is optimistic about U.S. stocks, despite their underperformance compared to international markets since 2015. He believes that large U.S. companies and high-quality growth stocks are resilient in a post-cycle economy, supported by the depreciating dollar, stable corporate earnings, and improvements in trade agreements with China. If the Federal Reserve adopts a dovish stance and the 10-year U.S. Treasury yield falls below 4%, it could boost the S&P 500 index. Wilson also favors healthcare and industrial stocks and has increased the target price for Tenet Healthcare to $175.

Overview of U.S. Stock Futures Afternoon Quotes

According to a MoneyDJ News report on May 6, 2025, at 16:47, as of 16:35 Taipei time, the quotes for the three major U.S. stock index futures were as follows:

  • Dow Jones Industrial Average Futures (DJIA INDEX): 41,076 points, down 243 points, a decrease of 0.59%.
  • S&P 500 Index Futures (S&P 500): 5,630.75 points, down 41 points, a decrease of 0.72%.
  • Nasdaq 100 Index Futures (NASDAQ 100): 19,855.25 points, down 200.25 points, a decrease of 1.00%.

This wave of decline continued the morning's weak trend. According to the earlier quote at 15:31, Dow futures were down 95 points, S&P 500 down 21.25 points, and Nasdaq 100 down 125.75 points. From 14:35 to 16:35, the decline in the three major index futures significantly expanded, indicating that market selling pressure gradually intensified.

Market Sentiment Affected by Multiple Factors

The current decline in the futures market is closely related to various domestic and international economic and policy developments. Firstly, the progress of U.S.-China trade negotiations remains unclear. Although the Trump administration signaled a possible reduction in some tariffs on China, it also announced a 100% tariff on foreign films and overseas-produced films and forecasted a new round of tariffs on the pharmaceutical industry, exacerbating market concerns about an escalating trade war.

In addition, Trump stated on Monday night that he would announce a new tariff policy on the pharmaceutical industry within the next two weeks. This statement raised investors' concerns about healthcare and pharmaceutical stocks, further dragging down overall market sentiment. According to a report by the Gazette, as of 05:30 Eastern Time on May 6, Dow E-mini futures were down 279 points, S&P 500 E-mini futures down 44.75 points, and Nasdaq 100 E-mini futures down 214.25 points, indicating that the market had already reacted to the related news.

Federal Reserve Rate Decision Meeting Imminent

Another important factor affecting the market is the Federal Reserve (Fed) rate policy meeting scheduled for May 6-7. According to the CME Group's FedWatch tool, the market expects the Fed to keep rates unchanged at this meeting, with only a 4.4% chance of a rate cut. However, investors will closely watch Fed Chair Powell's comments on the economic outlook for clues on the future direction of monetary policy.

According to a report by the United News Network, Wharton School professor Siegel pointed out that the trade agreement has not yet been reached, and the market remains in a state of high uncertainty. Altimeter Capital CEO Gerstner stated that although market volatility may continue in the short term, investors may see this as a buying opportunity.

Performance of the U.S. Stock Spot Market on the Previous Trading Day

Before the futures market weakened, the U.S. stock spot market had already seen a pullback on May 5 (Monday). The Dow Jones Industrial Average fell 98.60 points, a decrease of 0.2%; both the S&P 500 index and the Dow ended a nine-day rally, indicating a pause in the upward trend. According to Investopedia, energy stocks performed poorly that day, and concerns about Trump's tariff policy increased, putting pressure on the overall market.

Forex and Other Market Dynamics

The U.S. dollar index rebounded on May 6. According to MoneyDJ, the New Taiwan dollar exchange rate against the U.S. dollar closed at 30.280, depreciating by 1.35 tenths of a cent, ending a continuous appreciation trend. The strengthening of the U.S. dollar also put pressure on the prices of dollar-denominated assets, further affecting the performance of U.S. stock futures.

In addition, the yield on the 10-year U.S. Treasury bond rose from 4.32% last Friday to 4.35%, indicating that the market still has doubts about future interest rate trends. In the oil and gold markets, oil prices continued to decline, while gold was supported by safe-haven demand.

Intraday Futures Quote Trajectory

From the intraday data, U.S. stock futures showed a downward trend starting at 14:35:

  • 14:35: Dow futures at 41,264 points, down 55 points; S&P 500 at 5,657 points, down 14.75 points; Nasdaq 100 at 19,957.75 points, down 97.75 points.
  • 15:31: Dow futures' decline expanded to 95 points, at 41,224 points; S&P 500 down 21.25 points, at 5,650.5 points; Nasdaq 100 down 125.75 points, at 19,929.75 points.
  • 16:35: Dow futures finally at 41,076 points, down 243 points; S&P 500 at 5,630.75 points, down 41 points; Nasdaq 100 at 19,855.25 points, down 200.25 points.

This data series shows that market selling pressure gradually intensified in the afternoon, with investors remaining highly vigilant about the upcoming policy and economic data announcements.

References

People Also Ask...

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