US Stock Market Ends Winning Streak Amid Trade Uncertainty

On May 5, 2025, the US stock market experienced a mixed day, marked by the end of a significant winning streak. The S&P 500, which had been on a nine-day winning run, its longest since 2004, fell by 0.64 percent to close at 5,650.38. This decline was driven by renewed uncertainty over global trade, particularly concerns about new U.S. tariffs.The Dow Jones Industrial Average dropped by 98.60 points, or 0.24 percent, to close at 41,218.83, after initially falling as much as 253.99 points during the session. The Nasdaq Composite also declined, falling by 0.74 percent to finish at 17,844.24.Despite the overall decline, the market trimmed some of its losses following positive data from the Institute for Supply Management, which showed stronger-than-expected service sector activity in April. This economic reading helped offset some of the investor concerns.In terms of sector performance, there was no standout sector that significantly outperformed or underperformed, as the market's movement was largely influenced by broader trade and economic concerns.The most actively traded stocks were influenced by the general market sentiment, with no particular stock standing out significantly.Looking forward, investors are anticipating the Federal Reserve meeting on Wednesday, where interest rate decisions and comments from Chairman Jerome Powell will be closely watched. President Donald Trump's continued pressure on Powell to cut interest rates is also a factor in market anticipation.Pre-market futures had indicated a potential decline, with Dow Jones futures dropping by 193 points, or 0.47 percent, and S&P 500 futures falling by 0.52 percent. Key events to watch include the Federal Reserve meeting and any developments in the U.S.-China trade negotiations, which could serve as significant market catalysts.Important upcoming earnings releases will also be closely monitored, although specific releases for the immediate future were not highlighted as major market movers today. Overall, the market remains cautious, awaiting clearer signals on trade policy and economic direction.This content was created in partnership and with the help of Artificial Intelligence AI