Wall Street loses ground and oil prices tumble after OPEC+ says it will step up production

NEW YORK (AP) — Stocks fell in morning trading on Wall Street Monday and oil prices fell to a four-year low as the OPEC+ group announced plans to increase output.

The S&P 500 fell 0.3%. The benchmark index is coming off of its ninth straight gain.

The Dow Jones Industrial Average rose 52 points, or 0.1%, as of 10:59 a.m. Eastern time. The Nasdaq composite fell 0.5%.

There were more gainers than losers within the S&P 500 index, but the market was weighed down by losses in technology stocks and other big companies. Apple slumped 3.1%, while chipmaker Nvidia fell 0.8%. Tesla fell 3.7%.

Berkshire Hathaway fell 4.8%. 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. benchmark crude oil fell as much as 4% overnight before moderating.

U.S. crude oil prices fell 2.6% to $56.75 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. Energy companies fell. Exxon Mobil lost 2.6%.

Markets are coming off another winning week as they absorb the shock of tariffs and a growing trade war. President Donald Trump has imposed tariffs on a wide range of imports, sparking global retaliation. 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. 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.

There is still some resiliency in the broader economy. 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 1.8% and Warner Bros. Discovery fell 1.1%.

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.