US markets slipped on Monday, snapping the S&P 500’s longest winning run since 2004, as investors grew cautious amid mixed trade signals from the White House and rising inflation concerns.
Wall Street pulls back after nine-day rally
The S&P 500 dropped 0.64% to 5,650, ending a nine-day climb that had lifted the index to fresh records. The Nasdaq shed 0.74% and the Dow lost 99 points, after falling more than 250 points earlier in the session. Despite early weakness, a late rebound in industrials helped pare losses.
Stronger-than-expected US services data provided some relief, with April readings showing growth in the sector. But traders remained on edge as tariff tensions overshadowed the numbers. President Trump’s recent comments offered little clarity, saying he would “set the deal” himself and had no plans to speak with China’s President Xi — a signal that US-China trade tensions are far from resolved.
Tariff fears rattle media stocks
Film and streaming companies led declines after Trump announced plans for a 100% tariff on foreign-produced movies, citing national security. Netflix tumbled nearly 2%, while Paramount and Disney both dropped over 1%. The policy’s scope remains unclear, particularly regarding streaming content.
Fed meeting in focus
Markets are now looking ahead to the Federal Reserve’s policy decision due midweek. While a rate cut is seen as unlikely, investors are keenly awaiting any signals on how the central bank is weighing tariff-driven uncertainty against inflation pressures.
Commodities and the dollar
Global oil prices sank after OPEC+ agreed to a major output hike.
WTI crude is trading 1.89% lower at US$57.19 a barrel.
Brent crude is trading 1.62% lower at US$60.30 a barrel.
Spot gold is trading flat at US$3,334.09 an ounce.
One Australian dollar is buying 64.65 US cents.
Australian markets set to open lower
The ASX is expected to fall at Tuesday’s open, tracking Wall Street’s losses. The SPI futures are pointing to a loss of 21 points. Local investors will also be watching data on household spending and property prices.
