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Key Takeaways
- The S&P 500 slipped 0.6% on Monday, May 5, 2025, breaking a nine-day winning streak ahead of this week's interest-rate decision by the Federal Open Market Committee.
- Zimmer Biomet, a medical device maker, said that it expects tariffs will weigh on its profitability. Its shares fell.
- Tyson Foods’ shares dropped after the meat-processor missed its quarterly sales forecasts and cited charges associated with an antitrust agreement.
The major U.S. equity indexes have moved lower as they begin a trading week that will include the Federal Reserve’s latest policy decision. President Donald Trump has been pressing the Fed to lower interest rates.
The S&P 500 fell 0.6% on Monday, ending its streak of nine consecutive positive trading days. The Dow lost steam in the afternoon after trading higher for most of the session. It ended with a loss 0.2% and the Nasdaq 0.7% lower.
Zimmer Biomet (ZBH) shares plunged nearly 12%, easily losing the most of any stock in the S&P 500 on Monday. The orthopedic implant manufacturer, best known for its artificial hip and knee joints, has reduced its earnings forecast for 2025. It noted that tariffs may reduce operating profits by between $60 million and $80 million for the entire year. The company stated that it is looking into options to mitigate any potential tariff impact. This could include possible shifts in countries where its products are sourced and manufactured.
The entertainment industry became the latest to be caught up in the trade war crosshairs when Trump announced a tariff of 100% on foreign-made movies.
ON Semiconductor, despite exceeding first-quarter profits estimates and meeting sales expectations, saw its revenue fall 22% from the previous year due to a softening of automotive markets. The company stated that it faces macroeconomic issues and anticipates price declines for parts of its business. Onsemi shares fell 8.4%.
Tyson Foods’ (TSN) fiscal second quarter sales were lower than expected. Shares in the chicken, beef, and pork processor fell 7.8%. Tyson reported a significant earnings impact due to the $340m set aside for the settlement of the antitrust investigation into alleged price-fixing within the pork industry. Although the adjusted earnings per shares for the period exceeded expectations the company also provided relatively disappointing full-year sales guidance.
Shares of internet domain provider GoDaddy (GDDY) advanced 3.4%, securing the S&P 500’s top daily performance. GoDaddy’s stock recovered some of the steep losses it suffered on Friday following the release of its quarterly earnings. GoDaddy’s revenue, EPS and earnings beat expectations despite the fact that it fell short on analysts’ expectations for annual recurring revenue.
EQT Corp. (EQT) shares jumped 3.2% after UBS upgraded the natural gas producer’s stock to “buy” from “neutral” and lifted its price target. Analysts cited a positive outlook on natural gas in the coming years, robust growth in revenue and gross profit margins and operational strength after EQT acquired pipeline operator Equitrans Midstream Corporation.
Oil prices dropped as major producers agreed to increase production. Stocks of airlines rose as a result of the possibility that jet fuel prices would drop. Delta Air Lines’ (DAL), shares gained 3%.
