#MarketPullback

On May 5, 2025, the financial markets in the United States experienced a notable setback after a nine-day bullish streak, driven by a combination of geopolitical and economic factors. The Dow Jones index fell by 0.2%, the S&P 500 declined by 0.6%, and the Nasdaq lost 0.7%. This correction was primarily influenced by the announcement from former President Donald Trump regarding a new 100% tariff on foreign films, which significantly impacted entertainment companies like Disney and Netflix. This was compounded by the uncertainty generated by ongoing trade tensions with China and other countries, as well as the anticipation of upcoming U.S. Treasury bond auctions, which created caution among investors. Although positive data was reported from the services sector, the markets reacted with concern over the potential impact of the new trade policies on the global economy. This episode demonstrates the high sensitivity of the markets to political and economic decisions, and the need for constant vigilance over the macroeconomic environment.