Daily Fundamental Analysis: U.S. Markets Open Lower Following Best Winning Streak in Years
Key Takeaways:
OPEC+ to increase oil production in June
U.S. Stock futures open lower as US-China trade talks yield no results yet
Warren Buffett is stepping down as CEO of Berkshire Hathaway
Last Friday, the S&P 500 rose 1.5% Friday, marking nine consecutive days of gains and recovering losses from Trump’s tariff announcement. The Nasdaq and Dow also gained about 1.5%.
U.S. Stock futures declined Sunday night following a winning week that saw the S&P 500 achieve its longest positive streak in two decades. S&P 500 futures fell 0.4%, while Dow and Nasdaq-100 futures dropped 0.3%.
Trade optimism has lifted markets, with China signaling openness to trade deal discussions with the United States, though no agreements have been finalized yet.
The Federal Reserve’s policy meeting begins Tuesday, with traders watching for Powell’s economic outlook amid trade tensions. Markets show only a 3.2% chance of a rate cut according to the CME Group’s FedWatch tool.
In the commodity market, U.S. Crude oil futures dropped over 4% on Sunday after OPEC+ announced increased production next month. West Texas Intermediate (WTI) fell to $55.70 while Brent reached $58.90 per barrel. So far this year, oil prices are down 20%
OPEC+ agreed to raise output by 411,000 barrels per day in June, matching May’s increase and exceeding previous expectations. This increase in production comes as oil had its largest monthly decline since 2021, driven by recession fears from Trump’s tariffs and increasing supply.
At Berkshire Hathaway’s annual meeting in Omaha, Warren Buffett announced he will ask the board to appoint Greg Abel as CEO by year end. Buffett, 94, made this unexpected announcement to shareholders at the annual meeting. Since 1965, Buffett transformed Berkshire from a textile mill into a $1.2 trillion conglomerate. He’s stepping down at a high point, with the company’s shares at record levels.
While Buffett will remain available to help and maintain his entire shareholding worth over $160 billion, Abel, 62, will have final say on operations and investments. Currently vice chairman of non-insurance operations, Abel brings a more hands-on management style to Berkshire’s diverse portfolio.
