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

Taiwan • Business • 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.

Key Updates

05/07 07:04

Amid uncertainty surrounding Trump's tariffs, stock buyback plans by U.S. companies have reached a record-breaking $518 billion.

Due to the uncertainty caused by the Trump administration's tariff policies, American companies are accelerating stock buybacks. Reports from Deutsche Bank and S&P Global show that the total amount of stock buybacks announced by S&P 500 companies in the past three months reached $518 billion, setting a new record. Last week, companies announced buyback plans amounting to $192 billion. This is the highest for a single week since 1995. The wave of corporate buybacks reflects hesitation regarding future capital expenditure plans and a preference for using cash to stabilize stock prices and enhance earnings per share.

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.

1. Major Indices Drop Ahead of Fed Rate Decision

On Tuesday, all three major U.S. stock indices declined. The S&P 500 Index (^GSPC) fell about 0.9%, the Dow Jones Industrial Average (^DJI) dropped about 0.7%, and the tech-heavy Nasdaq Composite (^IXIC) saw the largest decline at 1.1%. The market widely expects the Fed to keep rates unchanged on Wednesday, but investors are closely watching Chairman Powell's comments on economic and trade policies, especially the potential impact of President Trump's recently announced new round of tariffs on the decision.

2. Trump Announces New Tariff Plan, Market Concerns Rise

President Trump stated over the weekend that he plans to impose a 100% tariff on imported movies and hinted at new tariffs on pharmaceuticals within the next two weeks. He also mentioned that he will not engage in trade talks with Chinese President Xi Jinping this week. These remarks have dashed market hopes for trade relief and led to the S&P 500 ending its longest winning streak in 20 years on Monday.

3. Ford Withdraws 2025 Full-Year Financial Forecast, Estimates $1.5 Billion Tariff Loss

Ford Motor Company (F) reported better-than-expected first-quarter earnings but withdrew its 2025 full-year financial forecast due to tariff uncertainties. The company estimates that tariffs will impact its net operating profit (EBIT) by $1.5 billion. This news led to Ford's stock dropping about 2% in early trading.

4. DoorDash Announces Two Acquisitions, Stock Falls 5%

Despite missing revenue expectations in its earnings report, DoorDash (DASH) announced plans to acquire UK delivery platform Deliveroo and tech company SevenRooms. Although this move demonstrates the company's expansion ambitions, the market reacted coolly, with the stock falling 5%.

5. Dover Acquires Germany's Sikora for $624 Million

Industrial manufacturer Dover (DOV) announced the acquisition of German measurement and control technology company Sikora for $624 million in cash. Sikora has seen double-digit organic growth over the past three years, mainly benefiting from rising data center demand. This acquisition shows Dover's active expansion into high-growth areas.

6. Palantir Raises Full-Year Revenue Forecast, Stock Falls 8%

Data analytics company Palantir (PLTR) reported a 39% year-over-year increase in first-quarter revenue, with U.S. government business revenue up 45%, and raised its full-year revenue growth forecast to 36%. Despite this strong performance, the stock fell 8% in early trading, possibly reflecting market concerns about valuation.

7. Clorox Reports Double Miss, Lowers Full-Year Sales Forecast

Consumer goods company Clorox (CLX) reported earnings that fell short of market expectations and lowered its full-year sales growth forecast from 4%-7% to 4%-5%. The company's stock fell nearly 3%, reflecting market concerns about its growth momentum.

8. Marriott Lowers Revenue Per Room Forecast

Hotel giant Marriott (MAR) lowered its global revenue per available room (RevPAR) forecast, primarily due to weak demand in the U.S. and Canada. The company did not provide specific figures, but this move indicates potential pressure on travel and business demand.

9. Major Companies Including AMD, Super Micro, Rivian Release Earnings

After the market closed on Tuesday, several tech and manufacturing companies released earnings, including chipmaker AMD (AMD), server manufacturer Super Micro (SMCI), and electric vehicle maker Rivian (RIVN). The market is highly focused on these companies' outlooks for the AI and electric vehicle markets.

10. U.S. March Consumer Credit Unexpectedly Declines

According to data released by the Federal Reserve, U.S. consumer credit in March decreased by $810 million, far below the market's expected increase of $9.5 billion. This is the first monthly decline since the early days of the 2020 pandemic, possibly reflecting more conservative consumer spending.

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