Wall Street opened the week on a cautious note, with major indices retreating as a combination of falling oil prices, renewed trade tensions, and profit-taking weighed on sentiment. The Dow Jones Industrial Average dropped more than 100 points, while the S&P 500 edged closer to ending its longest winning streak in two decades.
The Dow was down by over 170 points, or 0.41%, in early trading, with the S&P 500 losing 0.7% and the Nasdaq falling 0.8%. This pullback comes after a remarkable run, with the S&P 500 surging for nine consecutive sessions-its best streak since 2004. The index, however, remains 3.3% lower year-to-date and about 7.4% below its all-time high from February.
A key driver of the market’s decline was the drop in oil prices. US crude fell by 1.53% after OPEC+ announced plans to boost output by 411,000 barrels per day starting in June, raising concerns about oversupply in an already uncertain demand environment. The decline in oil weighed on energy stocks and contributed to the broader market weakness.
Meanwhile, gold prices surged by more than 2.5% as investors sought safe-haven assets amid heightened volatility and geopolitical uncertainty. The US dollar weakened against major currencies, adding to the cross-currents in global markets.
Adding to the pressure, President Donald Trump’s surprise announcement of a 100% tariff on films produced outside the United States rattled investors, particularly in the media and entertainment sectors. Shares of Netflix, Disney, and Warner Bros. Discovery all fell sharply, reflecting concerns about higher costs and potential disruptions to global content production.
Market participants are also turning their attention to the upcoming Federal Reserve meeting, with investors looking for signals on interest rates and the central bank’s response to the evolving economic landscape. The combination of commodity price swings, trade policy uncertainty, and monetary policy anticipation has injected fresh volatility into US equities.
As the S&P 500 hovers near the end of its nine-day winning streak, analysts caution that further gains may be harder to achieve in the near term. Seasonal trends and technical resistance levels could present additional headwinds, and the market’s risk/reward profile is seen as less favorable after the recent rally.
In summary, Wall Street’s pullback reflects a confluence of factors: falling oil prices, renewed tariff concerns, and a natural pause after an extended rally. Investors are bracing for more volatility as key economic and policy decisions loom in the days ahead.