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.

Taiwan • Business • 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.

Key Updates

05/07 17:31

Warren Buffett Minimizes Concerns About Market Volatility at Berkshire Hathaway Shareholders Meeting: Drawing on 18,000 Trading Days of Investment Experience

In early May 2025, at the Berkshire Hathaway annual shareholders meeting, Chairman Warren Buffett stated that recent market fluctuations are "really no big deal," emphasizing the importance of his long-term investment philosophy and rational approach. Buffett noted that in his investment career spanning over sixty years, he has experienced approximately 18,000 trading days, and the current market fluctuations are trivial compared to past crises. He reiterated that investors should remain calm and pointed out that Berkshire has $348 billion in cash ready for future opportunities.

05/07 13:30

On Wednesday, Top 10 Things to Watch in U.S. Stock Market: Trade Talks, Federal Reserve Decisions, and Corporate Earnings

On May 7, 2025, the U.S. stock market edged up slightly due to factors such as U.S.-China trade negotiations, the Federal Reserve's interest rate decision, and corporate earnings reports. Disney's earnings exceeded expectations, causing its stock price to surge nearly 8%; AMD's strong data center business led to a rise in its stock price; Uber's revenue missed expectations, resulting in a 4% drop in its stock price. The Federal Reserve kept interest rates unchanged, and the market focused on Chairman Powell's remarks. Senior U.S. and Chinese officials will meet over the weekend to restart trade negotiations. Retail sales data showed a rebound in consumer spending, while a decline in the PPI indicated easing inflationary pressures.

05/07 12:32

Warren Buffett Reiterates His Value Investing Strategy at 2025 Shareholders Meeting: Market Sentiment Influences Short-term Stock Prices

In May 2025, Warren Buffett reaffirmed his commitment to value investing during the shareholders' meeting, emphasizing that short-term market movements are driven by emotions, while in the long run, they align with the business's intrinsic value. He referenced Benjamin Graham's "Mr. Market" analogy, noting that low market sentiment presents a prime opportunity for value investing. Buffett mentioned that holding cash enables swift action when price and value are misaligned, and urged investors to concentrate on the business's long-term value instead of short-term price swings.

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.

Overview of the Latest U.S. Stock Futures Quotes

Here's a look at the latest movements in U.S. stock futures. According to a report by MoneyDJ at 09:33 Taipei time on May 7, 2025, the three major U.S. stock futures indices saw gains across the board:

  • Dow Jones Industrial Average Futures (DJIA Futures) rose 264 points to 41,182 points, an increase of 0.65%.
  • S&P 500 Futures rose 41 points to 5,666.75 points, an increase of 0.73%.
  • NASDAQ 100 Futures rose 167 points to 20,043.5 points, an increase of 0.84%.

This surge comes on the eve of the Federal Reserve's (Fed) policy meeting, with the market widely expecting interest rates to remain unchanged and focusing on hints about the future direction of monetary policy in the post-meeting statement.

Market Review of the Previous Trading Day

Despite a rebound in the futures market, the major U.S. stock indices generally closed lower on the previous trading day (May 6). According to comprehensive reports:

  • Dow Jones Industrial Average fell 300.42 points, a decrease of 0.73%, closing at 40,918.41 points.
  • NASDAQ Composite Index fell 194.17 points, a decrease of 1.09%, closing at 17,650.07 points.
  • S&P 500 Index fell 46.92 points, a decrease of 0.83%, closing at 5,603.46 points.
  • Philadelphia Semiconductor Index dropped 1.47% to close at 4,291.94 points.

The main reasons for the market decline include uncertainty over Fed policy, rising trade war risks, and corporate earnings forecasts falling short of expectations. Former U.S. President Trump raised the possibility of imposing new tariffs on goods such as pharmaceuticals, sparking concerns about supply chains and corporate profits.

Performance of Related ETFs and Leveraged Products

For ETFs and leveraged products tracking the Dow Jones and NASDAQ indices, according to data from Investing.com, as of 03:59:59 Eastern Time, the performance of the following products is as follows:

Dow Jones Related Products:

  • DIA SPDR Dow Jones Industrial Average ETF: $408.24, down 0.98%, with a trading volume of 1.75 million.
  • UDOW ProShares UltraPro Dow30 (3x Long): $76.53, down 3.04%, with a trading volume of 1.63 million.
  • SDOW ProShares UltraPro Short Dow30 (3x Short): $52.70, up 2.99%, with a trading volume of 1.6 million.
  • DOG ProShares Short Dow30 (1x Short): $27.59, up 1.03%, with a trading volume of 1.17 million.
  • DXD ProShares UltraShort Dow30 (2x Short): $28.36, up 1.98%, with a trading volume of 500,000.

NASDAQ Related Products:

  • 3455 Invesco QQQ Trust (Tracking NASDAQ-100): $3,760.00, up 0.62%.
  • SQQQ UltraPro Short QQQ (3x Short): $29.93, up 2.71%, with a trading volume of 96.06 million.
  • 7568 CSOP NASDAQ-100 Index Daily (-2x) Inverse Product: HKD 5.16, down 1.15%, with a trading volume of 3.79 million.
  • 7522 ChinaAMC Direxion NASDAQ-100 Daily (-2x) Inverse Product: HKD 0.79, down 0.88%, with a trading volume of 1.64 million.

These data indicate that despite the rebound in the futures market, the decline from the previous trading day is still reflected in the rise of leveraged short products.

International Market and Economic Data Background

In the global market, European stocks generally weakened. Germany's DAX index plummeted 2.1% at one point, as Chancellor-designate Merz failed to pass a parliamentary confidence vote, highlighting the instability of Germany's ruling coalition. The Stoxx 600 index ended a 10-day winning streak, slightly down 0.3%.

In the U.S., the March trade deficit widened to $140.5 billion, a record high, far exceeding the expected $136.8 billion and the previous value of $123.2 billion. This data exacerbates concerns about the external imbalance of the U.S. economy.

Additionally, the yield on the 10-year U.S. Treasury rose to 4.343%, indicating the bond market's continued sensitivity to inflation and interest rate prospects.

Commodity and Forex Market Overview

In the commodity market, oil prices rose. West Texas Intermediate (WTI) crude futures were reported at $59.57 per barrel, up 0.93%; Brent crude futures were reported at $62.56 per barrel, up 0.84%. Gold prices declined, with futures reported at $3,377.05, a decrease of 1.55%.

In the forex market, the dollar index fell to 99.335. The dollar rose 0.44% against the yen to 143.1010; the euro fell 0.25% against the dollar to 1.1348.

References

People Also Ask...

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