Dow Drops 200 Points Before Key Fed Meeting

U.S. stocks commenced the week on a downward trend, with the Dow Jones Industrial Average falling by over 200 points, signaling a cautious atmosphere for risk assets after last week’s gains.

As the Dow dipped by 200 points, the S&P 500 decreased by 0.6%, while the tech-heavy Nasdaq experienced a 0.8% decline at the market open. This bearish sentiment arose as Wall Street braced for a critical week featuring tariff developments and a crucial two-day meeting of the U.S. Federal Reserve.

Last week, the stock market saw a modest rise amid significant discussions regarding the U.S.-China trade conflict.

However, with reports of no immediate agreements and President Donald Trump’s recent tariff threats against foreign media, market sentiment has turned increasingly anxious.

Specifically, Trump declared a 100% tariff on films made outside the United States, announcing this via social media on Sunday, May 4, with immediate effect.

Concerns about the trade war and the upcoming policy decisions of the Federal Reserve remain at the forefront for investors.

On Monday, a slump in futures caused Bitcoin (BTC), the leading cryptocurrency, to drop to around $94k.

This decline happened as the U.S. dollar continued its downward trajectory, although the yield on the 10-year U.S. Treasury remained stable.

Looking forward, investor attention will be directed not only at the Fed’s meeting but also at macroeconomic indicators. The earnings season is underway, with major firms like automaker Ford (F) and Palantir (PLTR) in the limelight.

Other companies anticipated to report their earnings include Disney (DIS) and AMD (AMD). Significant data releases this week will include manufacturing activity on Monday and the jobless claims report on Tuesday.

Investors will closely monitor these reports as essential economic indicators.