US Market Reaction Ahead Of FOMC Meeting: Dow Jones In Green; Nasdaq & S&P 500 Fall; Movers Of Wall Street

US market update: The US stock market showed a mixed reaction during the trading session of Monday, May 5th, ahead of the FOMC monetary policy meeting. Dow Jones traded in a gap-up momentum, while S&P 500 and tech-heavy index Nasdaq slipped marginally. Key draggers were among media stocks that nosedived after Trump's 100% tariff announcement on foreign-made films. Further, Wall Street reacted to a fresh round of tensions after a Houthis missile attack hit Israel's Ben Gurion airport.

Dow Jones: The Dow Jones Industrial Average or DJIA traded up by 91.06 points or 0.22% to 41,408.49, at the time of writing. The benchmark has touched an intraday high and low of 41,443.52 and 41,063.44 respectively.

Nasdaq Composite: The tech-heavy index Nasdaq dropped by 64.15 points or 0.4% to trade at 17,913.58, after hitting an intraday high and low of 17,927.60 and 17,792.08 respectively.

S&P 500: The Standard and Poor's 500 index dipped marginally by 15.54 points or 0.3% to trade at 5,671.14. The index also touched an intraday high and low of 5,676.82 and 5,634.48 respectively.

US Media Stocks Crashed:

Netflix, Disney, Warner Bros, Paramount and Lionsgate Studios shares crashed by 2% to 8.5% after Trump directed the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any Movies coming into our Country that are produced in Foreign Lands.

Trump said, "WE WANT MOVIES MADE IN AMERICA, AGAIN!"

Crude Oil Prices Fell:

The performance of Wall Street also comes at a time when WTI crude oil futures fell by 2.2% to $56.9 per barrel, the lowest mark since January 2021. Brent Crude also dropped by 2% to perform around $60 per barrel.

Sentiments in crude oil boiled down after OPEC+ announced to ramp up its production, which sparked concerns of global supply glut. The OPEC+ body has announced to hike its output by 411,000 bpd in June 2025, which will be the second monthly surge in a row.

As per Trading Economics, this could bring back as much as 2.2 million bpd to the market by November as the group's leader Saudi Arabia seeks to punish some fellow members that have exceeded their quotas. These supply concerns overshadowed earlier news about China weighing talks with the U.S. that could ease trade tensions between the two economic giants.

Israel Houthis News:

The geopolitical tensions in Middle East also escalated after Houthis carried ballistic missile attack, hitting a road in Ben Gurion Airport of Tel Aviv.

The disastrous incident unfolded after Israel Defence Forces' (IDF) multiple interception failed, causing injury to 8 people on the ground. However, as per the local media, the terminal infrastructure was intact as the attack was averted to an access road in Ben Gurion airport's perimeter.

Israel has vowed to hit back at Houthis with seven-fold strikes. Yemen's terrorist group has been creating chaos against Israel since the start of the Gaza war, creating havoc to transportation in the Red Sea, and shooting missiles and drones at Israel.

US Dollar Index:

The greenback traded near 99.7 level against a basket of currencies, as global trade uncertainties due to Trump's tariff tantrums continues to keep investors jittery. US GDP has contracted sharply than expected to 0.3% in the first quarter of 2025, marking its first drop in 3 years.

FOMC Meeting Ahead:

US Federal Reserve committee is scheduled to begin its 2-days monetary policy meeting from May 6th to 7th.

Analysts at ING said, Presidential demands for lower interest rates are falling on deaf ears at the Fed as near-term inflation concerns limit the scope for action. Nonetheless, the US economy is cooling and that can pave the way for major rate cuts in the second half of the year.