S&P Breaks Its Win Streak and Streaming Stocks Slide
- NexxtGen Markets
- May 6
- 5 min read
Oil Closes at Lowest Level Since 2021 and AMD Reports Earnings
The S&P 500 fell by -0.64%, breaking its 9-day winning streak, which had been the longest in 20 years. The Nasdaq dipped -0.74%, while the Dow Jones decreased by -0.24%. This pullback reflects growing investor caution amid concerns over trade and potential changes to Federal Reserve policy.
Streaming stocks took a significant hit on the back of President Trump’s proposed tariff on non-U.S. films, with Netflix down by -2%, while Paramount, Disney, and Amazon also saw declines. Meanwhile, Skechers saw an impressive jump of nearly 25% following a $9 billion buyout deal from 3G Capital. Palantir rose +9% after hours, and AMD prepares to report its earnings.
Oil continued its decline, closing at its lowest level since 2021. WTI crude sits near $57, and Brent is near $60 after OPEC+ agreed to increase output by 411,000 barrels per day starting in June. The S&P Energy sector has fallen 6% year-to-date.
Market Movers
Skechers USA (SKX):▲24% to $61.39 - Skechers will be taken private by 3G Capital in a $9B deal at $63 per share, a 30% premium. Shares soared in response to the buyout.
BioCryst Pharmaceuticals (BCRX):▲24% to $11.03 - A strong move up as investors anticipate positive outcomes from recent announcements.
Lyft Inc. (LYFT):▲4% to $13.20 - A slight positive change in line with broader market sentiment.
ON Semiconductor (ON):▼-8% to $38.41 - A significant dip as investors react to broader market concerns and company specifics.
News Highlights
Markets Pull Back After Strong RunThe S&P 500 and Dow both ended their 9-day winning streaks, reflecting a moment of pause after a strong rally. While the pullback was modest, it signals investor caution, especially with trade concerns and potential shifts in Fed policy. Despite this, the S&P remains 7% above its recent low.
AMD Earnings ReportAdvanced Micro Devices (AMD) is scheduled to report its Q1 earnings after the market closes. Analysts are expecting 50% profit growth and 30% revenue growth year-over-year. AMD has historically beaten expectations, and the market remains optimistic about its strong product segments and rising margins.
Recent technical analysis suggests a possible trend reversal for AMD, which has fallen 33% over the last 12 months and is down 20% year-to-date. However, bullish crossovers and a rising Relative Strength Index (RSI) point to increasing buying interest.
Fed WatchingThe Federal Reserve is expected to keep interest rates steady on Wednesday as it assesses the effects of Trump’s new tariffs. While inflation and employment data remain stable, economists expect rate cuts could come by July. Investors are closely watching the Fed’s policy decisions, as tariffs could complicate the economic outlook.
Streaming Stocks Slide
Media stocks suffered losses after President Trump proposed a 100% tariff on foreign-made films, calling Hollywood’s decline a national security issue. The proposal spooked investors, leading to declines across major media companies:
Netflix: -2%
Warner Bros.: -2%
Paramount: -2%
Amazon: -2%
The impact on production pipelines and international film releases could be severe. Industry insiders have raised concerns about disruptions to Hollywood's global supply chain, but Trump has signalled openness to talks with studios.
Oil Closes at Its Lowest Level Since 2021
U.S. oil prices closed at their lowest since 2021 as OPEC+ ramped up production by an additional 411,000 barrels per day. WTI crude now sits near $57, and Brent is close to $60. The S&P Energy sector is down 6% year-to-date. This decline, coupled with concerns over a Trump-induced recession, has led oil prices to drop by 20% this year.
Goldman Sachs lowered its forecast for U.S. oil to $56 per barrel, reflecting rising OPEC+ supply and continuing fears about a slowing global economy.
Gold Stocks in Play
Gold has surged 44% over the past year, driven by safe-haven demand amid market uncertainty. The rising price of gold has benefitted mining companies, including Kinross Gold and Iamgold. Both companies are reporting earnings this week, with Kinross up 22% in the last three months and Iamgold up 7%. Although both stocks have recently pulled back from April highs, they remain popular in the ongoing metals rally.
Movers & Shakers
Pershing Square Holdings Ltd (PSH.L):▲1.39% to £3655 - Bill Ackman’s Pershing Square invested $900 million in Howard Hughes Corp, sending shares higher. Ackman will take on the role of executive chairman and aims to turn Howard Hughes into a “modern-day Berkshire Hathaway”.
Skechers USA Inc (SKX):▲24.35% to $61.393 - G Capital is acquiring Skechers for $9 billion, sending shares up 25%. Despite tariff risks, 3G believes in Skechers’ strong long-term potential.
Ford Motor Co (F):▼-1.07% to $10.17 - Ford has suspended its 2025 guidance due to uncertainty surrounding Trump’s tariffs. The automaker estimates a $1.5 billion hit to earnings, with tariff costs expected to reach $2.5 billion this year.
Palantir Technologies Inc (PLTR):▼-0.41% to $124 - Palantir raised its 2025 revenue forecast to $3.90 billion, boosted by increasing demand for AI tools. The company’s U.S. business sales are projected to exceed $1.18 billion, reflecting its strong momentum in the AI sector.
Coming Up Today
1:30 PM GMT – U.S. Trade Balance (March): Expected to show rising imports as firms rush to beat potential tariffs. Watch for USD movement.
3:00 PM GMT – Canada Ivey PMI (April): Forecasted to drop to 48 from 51.3, indicating softer business activity. Watch for CAD movement.
What to Watch
DoorDash has announced the acquisition of Deliveroo for $3.9 billion, marking a significant expansion into international markets. This move intensifies competition with Uber Eats in Europe’s competitive delivery space. The acquisition is seen as a way for DoorDash to strengthen its global presence.
Meanwhile, Sterling rose 0.29% against the dollar ahead of the Bank of England’s policy meeting. A 25-basis-point rate cut is expected, and traders will focus on the BoE’s tone amid concerns about the global slowdown due to tariffs. Markets expect at least two additional cuts later this year.
Canadian Prime Minister Mark Carney meets with President Trump to discuss trade, and investors will be watching for signals of cooperation or further escalation between the two key trading partners. The Canada ETF (EWC) is up 2.6% since Trump’s tariff announcement last month.
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