The three major US stock indexes recorded declines at the close of trading on Monday, May 5, after nine consecutive sessions of gains, ignoring positive US economic figures and optimistic statements from the US Treasury Secretary amid market anticipation of Wednesday’s Federal Reserve meeting.
Economic data in the opening session was positive, with the Supply Management Service (SMS) announcing that the US ISM Manufacturing PMI rose to 51.6 in April, compared to 50.8 in March, exceeding expectations of growth of 50.2.
In a related development, US Treasury Secretary Besant indicated in a television interview that 17 countries have contacted the US administration with the aim of reaching a trade agreement and very good proposals to avoid increasing tariffs on their exports. Entertainment sector stocks fell during the opening session after Trump’s holiday announcement that he would impose a 100% tariff on foreign-produced films. Netflix shares fell 1.9%, while Paramount Global shares fell 1.6%.
The US Federal Reserve, which meets on Tuesday and Wednesday, May 6 and 7, and will announce its meeting results at the end of the US session on Wednesday, is leading the week’s events. The bank is expected to keep interest rates unchanged at 4.5% for the third consecutive meeting this year, after cutting them by a quarter-basis point in December.
Meanwhile, companies and financial institutions continue to announce their first-quarter results. Chipmaker AMD, server manufacturer SMCI, and electric vehicle manufacturer RIVN are expected to announce their results this week, along with several other companies. The Dow Jones Industrial Average closed down approximately (98) points at 41,218, a loss of approximately 0.24%. It is currently trading in futures for today’s session, Tuesday, at 41,178, a decline of approximately 141 points. The S&P 500 index recorded losses at the close of 5,600, a decline of approximately 0.64%, after a nine-session winning streak, the longest in 20 years. It is currently trading in futures at 5,644, a decline of approximately 27 points. The Nasdaq index fell by (133) points, closing at 17,844, a loss of approximately 0.74%. It is currently trading in futures at a decline of approximately 141 points.