During the week of May 5 to May 9, 2025, Wall Street experienced market volatility driven by renewed trade tensions, mixed economic signals, and warnings from the Federal Reserve.

Economic indicators presented a mixed picture, as the ISM services index increased while the S&P Global U.S. services PMI fell to a multi-year low.

Looking ahead, attention will turn to upcoming inflation metrics, particularly the consumer price index (CPI) and producer price index (PPI), which could influence future Fed policy.

Alphabet's stock took a hit following testimony from an Apple executive, which suggested that AI advancements could pose a challenge to traditional search engines.

The Federal Reserve opted to hold interest rates steady, with Chair Jerome Powell expressing concerns about potential economic slowdowns due to rising prices and tariffs.

The widening U.S. trade deficit and new tariffs on foreign-made films negatively impacted the entertainment sector, affecting major stocks like Netflix, Disney, and Warner Bros.

In the tech sector, Palantir Technologies faced a stock decline despite beating revenue expectations and providing an improved full-year outlook, while Advanced Micro Devices reported strong results and optimistic guidance.

Berkshire Hathaway's stock fell after Warren Buffett announced his plans to step down as CEO by the end of the year, coupled with the company's earnings miss.

In contrast, Lyft's stock surged after announcing an increase to its share buyback program, despite reporting a revenue miss, thanks to strong growth metrics in rides and active users.

Electric vehicle stocks Rivian Automotive and Lucid Group reported mixed earnings, yet this positively influenced Tesla's stock, which gained momentum from favorable sentiment in the sector.

Despite the Nasdaq Composite approaching 18,000 points and the Cboe Volatility Index (VIX) closing at its lowest level in over a month, Wall Street faced the possibility of its first weekly loss in three weeks.

Upcoming earnings reports to watch include Alibaba, Deere, and Walmart, with analysts remaining optimistic about potential upside for the S&P 500.