Buffett Steps Down and S&P’s Historic Run: Key Market Events
- NexxtGen Markets
- May 5
- 4 min read
S&P 500 Posts Longest Win Streak in 20 Years The S&P 500 rose by 1.47%, reaching 5,686.67 and marking its longest win streak in 20 years, with a consecutive 9-day rally. The Dow Jones gained 564 points (+1.39%), closing at 41,317.43, and the Nasdaq climbed by 1.51% to 17,977.73. All three major indices ended the week with their second consecutive positive performance. Meanwhile, Australian markets fell post-Albanese’s election win, and most Asian currencies strengthened. Oil prices slumped by -4% after the latest OPEC+ hike, and most major Asian markets remained closed during the week.
Strong Jobs Report and Delayed Rate Cuts April’s payrolls report exceeded expectations, adding 177,000 jobs, beating the expected 133,000. The unemployment rate remained steady at 4.2%. Investors now anticipate rate cuts delayed, with the Fed expected to lower rates in July, rather than June.
Warren Buffett Steps Down as Berkshire CEO In a significant development for Berkshire Hathaway and the broader investing world, Warren Buffett announced his decision to step down as CEO by the end of the year, naming Greg Abel, his long-time deputy, as his successor. This change marks a historic leadership transition for the $1.2 trillion conglomerate.
Market Movers
CPS (Cooper-Standard) saw a 44% rise to $21.61.
SPX500 Index dropped by -1%, closing at 5652.
DUOL (Duolingo) surged 22% to $486.
HIMS & Hers rose 13% to $40.82.
The Week Ahead: Key Economic Data & Earnings Reports
Investors are keeping a close eye on several key data points and earnings reports in the upcoming week:
U.S. Import/Export Data for March will be released, especially important in light of President Trump’s ongoing tariffs.
U.S. Non-Manufacturing PMI numbers will be out on Monday, while Canada’s trade data will be released on Tuesday.
PMI Data from the U.S. and China will provide important insights into economic performance, with GBP/USD being closely watched.
Earnings reports from Ford Motor (F), Walt Disney (DIS), Advanced Micro Devices (AMD), Palantir Technologies (PLTR), and Novo Nordisk (NVO) will be key highlights for investors.
S&P 500 Hits 20-Year High Streak
The S&P 500 posted its strongest performance in years, climbing 1.47% on Friday and marking its longest winning streak since 2004. This performance effectively reversed the losses from earlier in the year tied to Trump's tariffs. The Dow Jones surged 564 points, and the Nasdaq rose by 1.51%, signalling strong investor confidence driven by the April jobs report.
Oil Prices Drop Amid OPEC+ Hike
Crude oil prices tumbled by 4% following an announcement by OPEC+ that it would continue its production hike, adding 411,000 barrels/day in June. This decision came as oil prices had already dropped by 20% this year, with recession fears exacerbated by ongoing trade tensions. The news has raised concerns about an impending supply glut, keeping energy stocks and upstream investments under pressure.
Berkshire Hathaway Leadership Change: Buffett to Step Down
The transition at Berkshire Hathaway marks the end of an era. Warren Buffett, the legendary investor, announced that he would step down from his position as CEO by the end of the year. His successor, Greg Abel, Vice Chairman of Non-Insurance Operations, has been groomed for this role for several years. During the annual meeting, Buffett emphasised the company’s record cash holdings of $347 billion, positioning Abel with ample dry powder for future investments.
Key Takeaways from Berkshire’s Weekend:
Buffett Out, Abel In: After six decades of leadership, Buffett will hand over the reins to Greg Abel, marking a historic leadership change.
Record Cash Reserves: Berkshire's cash holdings have hit a record $347 billion, allowing Abel plenty of resources for future acquisitions.
Buffett’s Ongoing Role: Although stepping down as CEO, Buffett will stay involved in an advisory capacity, providing guidance to Abel, much like Charlie Munger has done.
Palantir Reports Earnings
Palantir Technologies has seen a 54% surge in YTD performance, and investors are expecting strong Q1 earnings. The AI-focused data company must demonstrate revenue growth (forecasted at $858M to $862M) and increasing profits to justify its high valuation. A focus on its consumer segment and AI platform adoption will be key for investors as they look beyond government contracts.
Ford Motor Co. Navigates Tariff Challenges
Ford Motor Co. reports earnings amid uncertainty from tariff policies. The company has flagged concerns about higher input costs and supply chain delays stemming from recent trade developments. Investors will focus on Ford’s guidance for EV margins, North American demand, and how the company plans to navigate rising geopolitical and manufacturing pressures.
Coming Up Today
Bank Holiday in the UK (May Day).
U.S. ISM Services PMI (April) – Expected to fall to 49.4 from 50.8. Watch USD crosses for volatility.
What to Watch
Palantir (PLTR) will report Q1 earnings, with investors focusing on its consumer segment performance and AI platform adoption.
ISM Services PMI (April) – This data is a key indicator of economic health, tracking business activity in the services sector.
S&P Global Services PMI (April) – Provides insight into small and mid-sized firms’ expectations and economic performance.
Consumer Credit Change (March) – The report will gauge household financial health and consumer spending.
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