US Stock Market Close: All Three Major Indexes Close Lower, Berkshire Hathaway Plunges Over 5%

On Monday, Eastern Time, as investors closely monitored the latest developments in global trade tensions, US stocks ended their consecutive gains, with all three major indices closing lower, marking the end of the S&P 500's nine-day winning streak.

(Minute-by-minute charts of the three major indices, source: TradingView)

By the close, the Dow Jones Industrial Average fell 0.24% to 41,218.83 points; the S&P 500 dropped 0.64% to 5,650.38 points; and the Nasdaq Composite declined 0.74% to 17,844.24 points.

Prior to this week, US stocks had experienced a significant rebound, benefiting from robust economic data and the Trump administration's move to ease some tariff policies. The S&P 500 had nearly erased its losses since Trump announced the imposition of reciprocal tariffs on April 2, but it was still down 3.9% for the year.

The market received another round of positive data on Monday, with data from the Institute for Supply Management (ISM) showing that US service sector activity was stronger than expected. The April Purchasing Managers' Index (PMI) rose to 51.6, up from 50.8 in March and exceeding the market consensus of 50.4.

US Treasury Secretary Bessent said on Monday, "We are very close to reaching some agreements." This statement aligned with US President Trump's remarks on Sunday, in which he said that trade agreements with some countries could be finalised as early as this week.

Trump also announced that a 100% import tariff would be imposed on all movies made abroad. In response to this news, shares of streaming giant Netflix fell 1.9%, and Paramount Global dropped 1.6%.

In addition, "Oracle of Omaha" Warren Buffett announced that he would step down as CEO of Berkshire Hathaway by the end of the year, causing the company's shares to plummet 5.1% on Monday.

Performance of Popular Stocks

Most large-cap tech stocks fell, with Apple down 3.15%, Microsoft up 0.20%, Nvidia down 0.59%, Google up 0.14%, Amazon down 1.91%, Meta up 0.38%, Tesla down 2.42%, and Netflix down 1.94%.

Popular Chinese ADRs had mixed performances, with the Nasdaq Golden Dragon China Index down 0.04%. Alibaba rose 0.64%, JD.com fell 1.19%, Pinduoduo dropped 0.06%, NIO fell 1.24%, XPeng Motors rose 0.91%, Li Auto rose 0.84%, Bilibili rose 0.83%, Baidu rose 0.33%, NetEase rose 0.68%, and Tencent Music Entertainment fell 0.77%.

Corporate News

[Apple Issues Bonds for First Time in Two Years; Analysts Expect It to Raise $5 Billion to $6 Billion]

According to a filing with the US Securities and Exchange Commission (SEC), Apple issued four tranches of corporate bonds on Monday, local time, marking the company's first debt financing in two years. The proceeds are expected to be used for share buybacks, repaying outstanding debt, and other purposes.

The size of the offering was not disclosed at the time of the announcement, but analysts at CreditSights predicted that Apple would raise nearly $5 billion to $6 billion. Analysts noted that Apple has approximately $8 billion in debt maturing from May to November.

According to media reports, Apple plans to issue investment-grade bonds in up to four tranches, with the longest maturity being a 10-year bond, initially priced at a spread of about 0.7 percentage points over US Treasuries.

[Berkshire Hathaway's Board Votes to Appoint Abel as CEO, with Buffett Remaining as Chairman]

Berkshire Hathaway issued a statement on May 5, stating that its board voted on the 4th to appoint Greg Abel as CEO effective January 1, 2026, with Warren Buffett continuing to serve as chairman.

[OpenAI's Restructuring Plan Forced to Change; Will Remain Under Nonprofit Control]

On Monday (May 5), local time, artificial intelligence (AI) research company OpenAI announced that it would remain under the control of its nonprofit parent company while advancing plans to restructure its for-profit division to raise more funds and maintain a leading position in the AI race.

"After listening to the opinions of civic leaders and engaging in discussions with the offices of the attorneys general of California and Delaware, we have decided that the nonprofit will continue to control the company," Bret Taylor, chairman of OpenAI's board, said in an official statement on Monday. "We look forward to ongoing communication with them, Microsoft, and the newly appointed nonprofit board members to advance the specifics of this plan."

[Ford Motor's Ford Blue Revenue Reaches $21 Billion in Q1, Exceeding Market Expectations]

Ford Motor reported adjusted earnings per share (EPS) of $0.14 for the first quarter, compared to analysts' expectations of a loss of $0.043 per share. Ford Blue's revenue for the quarter was $21 billion, exceeding analysts' expectations of $20.08 billion. Ford Blue's EBIT for the quarter was $1.2 billion, compared to analysts' expectations of $1.22 billion. The company expects to be hit by $1.5 billion in tariffs this year and has suspended its 2025 earnings forecast.