NEW YORK (AP) — Stocks closed lower on Wall Street Monday, breaking a nine-day winning streak, as oil prices hit a four-year low after the OPEC+ group announced plans to increase output.
The losses came amid a relatively calm day of mostly mixed trading. They follow several weeks of gains that helped the market wipe away its losses since the ongoing trade war began.
The S&P 500 fell 36.29 points, or 0.6%, to 5,650.38. The decline broke the benchmark index's longest winning streak since 2004.
The Dow Jones Industrial Average fell 98.60 points, or 0.2%, to 41,218.83. The Nasdaq composite fell 133.49 points, or 0.7%, to 17,844.24.
Technology companies and other big stocks were among the heaviest weights on the market. Apple slumped 3.1%, while Amazon fell 1.9% and Tesla slipped 2.4%.
Berkshire Hathaway fell 5.1%. Legendary investor Warren Buffett announced over the weekend that he would step down as CEO by the end of the year after six decades at the helm. Buffett will still be chairman of the board of directors.
The OPEC+ group of eight oil producing nations announced over the weekend that it will raise its output by 411,000 barrels per day as of June 1.
U.S. crude oil prices fell 2% to $57.13 per barrel. Many producers can no longer turn a profit once oil falls below $60. Prices are down sharply for the year over worries about an economic slowdown. The energy sector led the losses within the S&P 500. Exxon Mobil shed 2.8%.
Markets have been absorbing the shock of tariffs and the growing trade war. President Donald Trump has imposed import taxes on a wide range of imports, prompting retaliation from global trading partners. Many of the more severe tariffs that were supposed to go into effect in April were delayed by three months, with the notable exception of tariffs against China.
The delays have provided some relief to Wall Street, though uncertainty about the impact from current and future tariffs continues to hang over markets and the economy.
“Uncertainty remains elevated and economic data will likely weaken in the coming months, meaning further bouts of volatility are likely," said Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management.
That uncertainty will overshadow the Federal Reserve’s meeting this week.
The Fed is expected to hold its benchmark interest rate steady on Wednesday. It cut the rate three times in 2024 before taking a more cautious stance. The central bank was concerned that inflation, while easing, was still stubbornly hovering just above its target rate of 2%. Concerns about inflation reigniting have only grown amid the global trade war sparked by Trump’s tariff policy.
The economy has shown some signs that it is feeling the impact from tariffs and the uncertainty over Trump's policy. The U.S. economy shrank 0.3% in the first quarter, marking the first drop in three years.
The economy is still showing signs of resilience, however. Consumers have grown more cautious, but still continue to spend. Economic activity in the services sector continued expanding in April, according to a survey from the Institute for Supply Management.
The services sector survey and the latest consumer confidence updates also reflect growing concerns over the economy's direction. Trump’s rapidly shifting policies on trade have kept the Fed and markets on edge.
Tariffs have been imposed, only to be pulled or delayed, sometimes on a daily basis. The on-again-off-again approach has left businesses, households and economists at a loss in trying to forecast where the economy might be headed and planning accordingly.
The latest salvo in the trade war from Trump came Sunday night in a post on his Truth Social platform. He said he has authorized a 100% tariff on movies that are produced outside of the U.S. The impact is unclear, as it is common for films to include production at multiple locations around the world.
Netflix slumped 1.9% and Warner Bros. Discovery fell 2%.
Shoemakers posted gains following the announcement that Skechers is being acquired for $9 billion and taken private by the investment firm by 3G Capital.
Skechers jumped 24.3%, while Crocs rose 3.4%. Deckers Outdoor, which owns the Ugg and Teva brands, rose 1.2%.
Treasury yields rose. The yield on the 10-year Treasury rose to 4.35% from 4.31% late Friday.
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AP business writers Jiang Junzhe and Matt Ott contributed to this story.
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