The U.S. stock market kicked off the week on uncertain footing, with investors largely in wait-and-see mode ahead of the Federal Reserve’s latest interest rate decision. While no immediate action is expected, traders are hopeful that a pivot is coming — potentially as soon as June.
Here’s where the markets stood as of Monday’s close:
- Dow Jones: Up 0.23%, closing at 41,414
- S&P 500: Down 0.23%, settling at 5,673
- Nasdaq: Dropped 0.30%, ending at 17,923
Why June Might Be the Turning Point
According to LPL Financial’s Jeffrey Roach, the Fed may use this week’s meeting to signal that rate cuts are on the horizon. Based on his projections, cuts could arrive in June, October, and December, depending on how inflation and jobs data play out.
And speaking of inflation — the numbers are improving. The latest data puts the U.S. inflation rate at 2.39%, still above the 2% target, but heading in the right direction. This drop comes despite earlier fears that U.S. tariffs on China would drive prices higher.
One reason inflation is cooling? Oil prices are falling, thanks in part to OPEC+’s recent decision to increase output by 411,000 barrels per day starting in June. Lower energy costs tend to trickle down, easing price pressures for everything from transportation to groceries.
Trump Targets Foreign Films with New Tariff Proposal
Meanwhile, in a move that caught many off guard, President Trump proposed a 100% tariff on foreign-made movies. He claimed foreign governments are unfairly enticing U.S. studios to film overseas and labeled it a national security issue.
The announcement adds to an already complex trade backdrop — and may put pressure on entertainment stocks if Hollywood becomes a new target of economic policy.
Warren Buffett to Step Down as CEO
One of the day’s most notable headlines came from Berkshire Hathaway, where legendary investor Warren Buffett announced he’s stepping down as CEO — though he’ll continue to serve as president. Markets didn’t take the news well: Berkshire shares dropped 4.33%, with many investors worried about the company’s post-Buffett era.
Bottom Line
Markets are treading water for now, but if inflation keeps falling and the Fed confirms rate cuts are coming, we could see a big shift in investor sentiment starting in June. Until then, all eyes remain on this week’s Fed meeting.
