Tariff threats topped off, S&P ended nine consecutive positives, Berkshire fell 5%, crude oil hit a three-year low, and Taiwan dollar soared

Source: Wall Street News

With the threat of tariffs looming large, U.S. stocks retreated. The S&P 500 index ended its longest consecutive winning streak in more than two decades, while gold prices rose further. The unexpectedly positive release of the leading indicator for the U.S. service sector during the trading session helped to contain the decline in U.S. stocks, and the yield on U.S. Treasury bonds climbed. After OPEC+ accelerated production increase once again, crude oil opened sharply lower and then narrowed more than half of its decline.

The risk aversion sentiment returned to the market, and all major industry sectors of U.S. stocks generally closed lower:

Before the opening of U.S. stocks, according to the Securities Times, Trump said on Sunday, the 4th, that the United States is holding talks with many countries, including China, on trade agreements. The main priority in the negotiations with China is to ensure the conclusion of a fair trade agreement. According to Xinhua News Agency, Trump said on Sunday that he would impose a 100% tariff on all movies produced overseas. Industry media said that this could have a significant impact on the U.S. entertainment industry. In recent years, many U.S. film companies have gone to countries such as the UK, Australia, and Canada to produce blockbusters, and Hollywood needs this to reduce film production costs.

When U.S. stocks opened, the three major indexes all declined. Shares of media and entertainment companies such as Netflix, Disney, and Warner Bros. Discovery plunged at the beginning of the trading session. Buffett announced over the weekend that he would step down as CEO by the end of this year, and Berkshire Hathaway opened sharply lower.

In the early trading session of U.S. stocks, after the release of ISM data, the unexpectedly positive leading indicator for the service sector pushed up the yield on U.S. Treasury bonds, and the declines in the U.S. dollar and U.S. stocks narrowed. Media reported that India proposed to the United States reciprocal tariff exemptions for steel and automobiles. Japanese media reported that the United States refused to completely exempt Japan from reciprocal tariffs. The iShares MSCI Japan ETF (EWJ) quickly declined in the short term, and its intraday gain once narrowed from about 0.9% to less than 0.6%.

In the foreign exchange market, the New Taiwan dollar recorded its largest intraday gain against the U.S. dollar since 1988. Later, the "Central Bank of the Republic of China (Taiwan)" reiterated that the U.S. Treasury Department has not required the appreciation of the New Taiwan dollar, stating that the strong expectation of the New Taiwan dollar's appreciation partly comes from market commentators. It called on commentators not to discuss the market based on speculation and reiterated that if exchange rate fluctuations endanger market stability, it will intervene. In addition, comments said that the hedging operations of Taiwan's insurance funds also contributed to the sharp rise of the New Taiwan dollar.

On Monday, the three major U.S. stock indexes closed lower collectively, and the S&P 500 ended its nine-day winning streak. Under the impact of the tariff threat to the film industry, Netflix closed down nearly 2%, Disney fell 0.44%, and Apple closed down more than 3%. Berkshire Hathaway ultimately closed down more than 5%. ETFs of various sectors of U.S. stocks generally closed lower. Among them, the news of OPEC+'s production increase caused the energy and oil and gas sectors to fall more than 1.7%.

The three major U.S. stock indexes:

The S&P 500 index closed down 36.29 points, or 0.64%, at 5650.38 points.

The Dow Jones Industrial Average closed down 98.60 points, or 0.24%, at 41218.83 points.

The Nasdaq Composite Index closed down 133.49 points, or 0.74%, at 17844.24 points. The Nasdaq 100 index closed down 134.67 points, or 0.67%, at 19967.94 points.

The Russell 2000 index closed down 0.82%, at 2004.26 points.

The CBOE Volatility Index (VIX) closed up 4.23%, at 23.64.

U.S. stock industry ETFs:

The S&P Energy and Oil & Gas ETFs led the decline among various sector ETFs of U.S. stocks. The former fell 1.81%, and the latter fell more than 1.7%.

"The Magnificent Seven" of U.S. technology stocks:

The seven major U.S. technology stocks (Magnificent 7) fell 1.04%.

Tesla closed down 2.42%, Amazon fell 1.91%, Meta Platforms rose 0.38%, NVIDIA fell 0.59%, Alphabet (Google C) rose 0.14%, Apple fell 3.15%, and Microsoft rose 0.20%.

Chip stocks:

The Philadelphia Semiconductor Index closed down 0.93%, at 4356.18 points.

AMD closed up 1.81%, and the ADR of Taiwan Semiconductor Manufacturing Company (TSMC) fell 1.26%.

Despite both its first-quarter revenue and the midpoint of its second-quarter guidance being higher than expected, On Semiconductor closed down 8.35%.

AI concept stocks:

Applovin closed down 1.87%, and Tempus AI closed down 5.24%.

Palantir closed down 0.41%. After releasing its financial report after the market close, it raised its full-year performance forecast, and its decline after the market close once exceeded 8%.

Chinese concept stocks:

The Nasdaq Golden Dragon China Index closed down 0.04%, at 7169.79 points.

Among the popular Chinese concept stocks, the ADR of Xiaomi rose 1.2%, and Bilibili, XPeng, Li Auto, NetEase, Baidu, Alibaba, and New Oriental rose by up to 0.9%.

Other individual stocks:

Under the tariff threat, Warner Bros. Discovery closed down nearly 2%, Netflix fell 1.94%, Disney fell 0.44%, and Paramount fell 1.57%.

Berkshire Hathaway's Class B shares closed down 5.12%. The board of directors of Berkshire Hathaway approved on Sunday that Abel will succeed Buffett as CEO starting from January 1 next year.

Tyson Foods closed down 7.75% after its revenue in the second fiscal quarter was lower than expected. The footwear company Skechers rose 24.27% after it agreed to be acquired by 3G Capital at a premium of $36 per share.

European stocks achieved their longest consecutive winning streak since 2021, with improved trade and economic outlooks. Among them, the German stock index rose for nine consecutive days, with a daily gain of more than 1%, rebounding about 18% from its lowest closing level in April.

Pan-European stocks:

The Stoxx Europe 600 index closed up 0.16%, at 537.31 points, having risen a cumulative 6.09% since the close on April 17.

The Euro Stoxx 50 index closed down 0.04%, at 5283.05 points.

Stock indexes of various countries:

The DAX 30 index in Germany closed up 1.12%, rising for the ninth consecutive trading day, at 23344.54 points.

The CAC 40 index in France closed down 0.55%, at 7727.93 points.

The FTSE MIB index in Italy closed up 0.39%, at 38475.55 points.

Sectors and individual stocks:

Among all the constituent stocks of the Stoxx Europe 600 index, Erste Group Bank AG closed up 8.67%, Frontline rose 4.7%, Puma rose 3.3%, and Rheinmetall AG (RHM) in Germany rose 3.24%, ranking fourth in performance.

Among the blue-chip stocks in the eurozone, Kering and BASF performed the worst. UniCredit Bank fell 1.25%, and L'Oréal fell 0.88%, ranking among the top ten in terms of decline.

The yield on the 10-year U.S. Treasury bond rose by more than 2.9 basis points, and the yield on the 2-year U.S. Treasury bond rose by 1.24 basis points. After the release of the U.S. ISM non-manufacturing data, the yield on the 2-year U.S. Treasury bond rose sharply in the short term, once reaching a daily high of 3.8550%.

U.S. Treasury bonds:

At the end of trading in New York, the yield on the 10-year U.S. Treasury bond rose by 2.92 basis points, to 4.3375%.

The yield on the 2-year U.S. Treasury bond rose by 1.24 basis points, to 3.8364%.

European bonds:

At the end of trading in the European market, the yield on the 10-year German Treasury bond fell by 1.6 basis points, to 2.517%, trading within the range of 2.534% - 2.4503% during the day.

The yield on the 10-year Italian Treasury bond fell by 3.3 basis points, to 3.603%.

At the end of trading in the European market, the yield on the 10-year French Treasury bond fell by 1.3 basis points, to 3.236%. The yield on the 10-year Spanish Treasury bond fell by 2.2 basis points, to 3.168%.

After the release of the U.S. ISM data in April, the decline of the U.S. dollar index narrowed. The New Taiwan dollar once soared by 5%. After the "Central Bank of the Republic of China (Taiwan)" denied that the tariff consultations with the United States involved the exchange rate and called on market commentators not to discuss the market based on speculation, it narrowed part of its gain. The offshore Chinese yuan rose by more than 300 points intraday, breaking through 7.19 and reaching a new high in five months.

U.S. dollar:

At the end of trading in New York, the ICE U.S. Dollar Index fell 0.22%, to 99.808 points, showing a W-shaped decline throughout the day, with the overall trading range being 99.999 - 99.464 points.

The Bloomberg Dollar Index fell 0.24, to 1221.61 points, trading within the range of 1224.72 - 1218.49 points during the day.

Non-U.S. currencies:

At the end of trading in New York, the euro rose 0.19% against the U.S. dollar, to 1.13176.

The British pound rose 0.23% against the U.S. dollar, to 1.32955.

The U.S. dollar fell 0.51% against the Swiss franc, to 0.82147.

Japanese yen:

At the end of trading in New York, the U.S. dollar fell 0.86% against the Japanese yen, to 143.73 yen, trading within the range of 145.00 - 143.54 yen during the day.

The euro fell 0.70% against the Japanese yen, to 162.65 yen; the British pound fell 0.63% against the Japanese yen, to 191.134 yen.

Offshore Chinese yuan:

At the end of trading in New York, the offshore Chinese yuan was quoted at 7.2011 yuan against the U.S. dollar, rising 119 points compared with the end of trading in New York on Friday (the non-farm payrolls day), and trading within the range of 7.2199 - 7.1845 yuan during the day.

Cryptocurrencies:

At the end of trading in New York, the decline in the spot price of Bitcoin narrowed to 1.14%, to $94,636.

At its meeting on Saturday, OPEC+ decided to accelerate production increase for the second consecutive month and announced an increase of 411,000 barrels per day starting from June 1. International crude oil opened with a gap down on Monday. In the early trading session of the Asian market, when it refreshed the intraday low since April 9, U.S. crude oil fell 5.2%, and Brent crude oil fell nearly 4.6%, closing at the lowest level since September 2021.

Crude oil:

WTI June crude oil futures closed down $1.16, or 1.99%, at $57.13 per barrel, hitting a new closing low since 2021.

Brent July crude oil futures closed down $1.06, or about 1.73%, at $60.23 per barrel.

Natural gas:

NYMEX June natural gas futures closed down 2.20%, at $3.5500 per million British thermal units.

Under the tariff threat, the risk aversion sentiment returned to the market, and gold prices rose nearly 3% intraday, almost erasing the decline over the past week.

Gold:

At the end of trading in New York, spot gold rose 2.84%, to $3332.56 per ounce.

COMEX gold futures rose 3.04%, to $3342.00 per ounce.

Silver:

At the end of trading in New York, spot silver rose 1.40%, to $32.4560 per ounce.

COMEX silver futures rose 1.15%, to $32.630 per ounce.

Copper:

At the end of trading in New York, COMEX copper futures rose 0.64%, to $4.7030 per pound.

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