Stocks Stumbles as Buffett Exit, Tariff Tensions Shake Investor Confidence

Wall Street Loses Momentum Following Buffett’s Exit News and Trade Policy Risks

The U.S. stock market paused its recent rally on Monday, as key indexes declined following a whirlwind of news that sent ripples through investor sentiment. The S&P 500 fell 0.6%, the Nasdaq shed 0.7%, and the Dow Jones Industrial Average dipped 0.2% — ending a nine-day winning streak. This pullback reflected mounting concerns over potential disruptions tied to U.S. trade policy and leadership transitions at one of the most iconic American companies.

A major catalyst behind the slump was the announcement that Warren Buffett, the 94-year-old chairman and CEO of Berkshire Hathaway, will officially step down by the end of 2025. Shares of the conglomerate dropped more than 5% following the news. The board named Greg Abel, Buffett’s longtime heir-apparent, as his successor. While widely anticipated, the official transition introduces a layer of uncertainty regarding the future of the company’s investment philosophy and corporate stewardship. (New York Post)

Adding to investor jitters, the Biden administration signaled that it may support new tariffs targeting foreign media and tech services, including a proposed 100% import duty on overseas streaming content. The move, aimed at bolstering U.S.-based content producers, rattled shares of streaming giants such as Netflix and Paramount Global.

Commodities added to the volatility. Gold prices surged past $3,300 per ounce as investors sought a safe haven, while oil slipped amid reports of rising OPEC output, underscoring ongoing supply-demand imbalances.

India Gains, UK Prepares Rate Cut as Global Reactions Diverge

While Wall Street wobbled, not all markets followed suit. India’s Sensex and Nifty both climbed on Monday, buoyed by strong corporate earnings from Reliance Industries and HDFC Bank. Indian investors appeared unfazed by Western trade anxieties and instead focused on domestic resilience and a favorable growth outlook.

Meanwhile, policymakers in the UK took a more defensive stance. The Bank of England is now widely expected to cut interest rates from the current 4.5%, citing risks from American protectionism and weakening trade dynamics. This would mark a notable shift in the central bank’s tone, aligning more with recession-preventive action than inflation control. (The Guardian)

European equities moved moderately higher, while Asian markets remained quiet due to holiday closures.

IPO Buzz and Crypto Resilience Amid Volatility

In corporate news, Israeli trading platform eToro revealed plans to go public in the U.S., targeting a $4 billion valuation. The company aims to raise up to $500 million by pricing shares between $46 and $50, signaling strong investor appetite in fintech despite broader market uncertainty.

Bitcoin remained remarkably stable, trading near $94,500 — continuing its recent pattern of resilience in times of traditional market stress.

As May unfolds, investors will be closely watching the Federal Reserve’s next interest rate decision and any escalation in tariff measures that could further impact tech, manufacturing, and consumer sectors.