Wall Street Wobbles: Oil Slump, Tech Weakness, and Buffett's Exit Shake Markets
After nine days of steady gains, the S&P 500 finally took a breather, falling 0.3% as Wall Street reeled from a mix of unsettling headlines and shifting global dynamics. The Nasdaq fared worse, shedding 0.5%, led by a sell-off in heavyweight tech stocks. Apple, Tesla, and Nvidia were among the biggest drags, with losses of 3%, 3.8%, and 0.7%, respectively.
One of the biggest bombshells over the weekend came from Omaha. Warren Buffett announced he will step down as CEO of Berkshire Hathaway by the end of the year after more than six decades at the helm. While he’ll stay on as chairman, investors reacted with concern, sending Berkshire shares tumbling nearly 4%.
Meanwhile, the oil market saw a sharp drop after OPEC+ declared plans to increase output by over 400,000 barrels a day starting June 1. US crude fell to $57.05 a barrel, down 2.2%, further hurting energy stocks like Exxon Mobil, which declined the same percentage.
The economic backdrop remains clouded by geopolitical tensions and trade uncertainty. President Donald Trump's trade policies are once again stirring investor anxiety. Even though some tariffs were postponed, a surprise announcement on Sunday that the US will slap a 100% tariff on foreign-made films sparked confusion across the entertainment industry. Stocks like Netflix and Warner Bros. Discovery slipped on the news.
Yet, amid the red, there were pockets of green. Skechers surged nearly 25% after reports of a $9 billion buyout by 3G Capital. The deal sparked a ripple effect in footwear stocks, lifting Crocs and Deckers Outdoor.
As markets wait for the Fed’s rate decision on Wednesday, investors are bracing for more volatility. The central bank is widely expected to hold rates steady, but lingering inflation and the specter of a trade war keep markets on edge.
With the US economy shrinking in Q1 and global demand faltering, the path forward appears uncertain. But if the past is any guide, Wall Street will continue its dance with risk — one swing at a time.
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