Dow Jones Industrial Average and the S&P 500 opened lower as U.S. stocks slipped again on Tuesday, May 6 amid ongoing tariff uncertainty.
S&P 500 slid 0.8%, while Dow Jones Industrial Average futures dropped more than 300 points, or roughly 0.6%. Meanwhile, the Nasdaq Composite shed over 1.1% to lead the early losses for stocks, after a notable dump for futures.
The shares of Nvidia, Meta Platforms and Tesla all opened more than 1% lower. Also down after premarket struggles were shares of Goldman Sachs, Lucid and Palantir.
The lackluster performance comes as the market awaits the Federal Reserve meeting, which starts on Tuesday. Also in investor sights is the existing tariffs scenario, with President Donald Trump’s remarks as well as views on interest rates crucial.
It is amid this outlook that Paul Tudor Jones, a billionaire hedge-fund manager, believes the stock market could yet dip further. The billionaire investor told CNBC’s ‘Squawk Box’ that this is likely even if Trump ends up toning down the aggressive tariffs approach towards China.
“For me, it’s pretty clear. You have Trump who’s locked in on tariffs. You have the Fed who’s locked in on not cutting rates. That’s not good for the stock market…We’ll probably go down to new lows, even when Trump dials back China to 50%,” Jones noted.
Jones’ remarks about the Fed comes ahead of the central bank’s rate decision expected on Wednesday, May 7. Consensus is largely on Fed keeping its interest rates unchanged. Expectations for June means investors will pay close attention to comments from Fed chair Jerome Powell.
Key will be the experts’ take on the economy and the trade war situation. The recent economic data will be key but so is the tariffs offensive against China.
Notably, Trump added to the trade war conversation with another threat of additional tariffs against pharmaceuticals. Earlier, it was the 100% tariffs on foreign media that had stocks such as Netflix and Disney slumping amid downside pressure for the Dow and S&P 500.
As well as the overall market performance on the day, investors will be alert to earnings releases, with spotlight on AMD, Super Micro and electric vehicle maker Rivian. Across the market, traders will also be watching market reaction for Bitcoin (BTC).
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