The U.S. stock market has entered a period of consolidation ahead of the Federal Reserve's interest rate decision. The S&P 500 index, which had been on an upward trend, turned negative after 9 trading days, revealing caution about the upcoming Federal Open Market Committee (FOMC) meeting.
On the 5th (local time) in the New York stock market, the S&P 500 index fell 0.6% from the previous session, and the Nasdaq index slid 0.7%. The Dow Jones index, which had shown an upward trend during the day, changed direction in the afternoon and closed down 0.2%. This is interpreted as traders adjusting their positions ahead of the Fed's interest rate policy announcement. In particular, with President Trump urging the Federal Reserve to cut rates, market tension has further increased.
By industry, Zimmer Biomet (ZBH), a medical device manufacturer, recorded the largest decline. The company's stock plummeted nearly 12% in a day after lowering its 2025 performance outlook. The rising cost of its main product, artificial joints, due to tariff impacts was a direct hit. Zimmer said it is reviewing production and supply chain restructuring to reduce tariff burdens.
Meanwhile, global semiconductor company ON Semiconductor reported first-quarter results slightly above expectations, but sales decreased by 22% year-on-year and warned of potential further price drops for some products. Reflecting concerns about weak automotive market demand and deteriorating macroeconomic conditions, its stock fell 8.4%.
Tyson Foods (TSN), a meat processing company, also fell 7.8% after announcing results below expectations. The company reported setting up a provision of approximately $340 million related to an antitrust lawsuit over pork price collusion and its annual sales forecast was below market expectations.
On the other hand, GoDaddy (GDDY), an internet domain and web hosting company, saw its stock rise 3.4% as earnings per share (EPS) and revenue exceeded expectations. Particularly, it showed the most prominent increase among S&P 500 stocks while partially recovering from Friday's sharp decline. However, analysts still pointed out concerns about low annual recurring revenue and stock valuation burdens.
EQT, a natural gas company, rose 3.2% due to UBS's upgraded investment opinion. UBS raised its target price, evaluating that profitability and sales growth will be further strengthened after acquiring a pipeline operator.
With international oil prices falling due to additional supply expansion by major oil-producing countries, airline stocks benefited. Delta Air Lines (DAL) closed 3% higher on expectations of reduced jet fuel costs.
Meanwhile, President Trump's announcement of introducing 100% tariffs on foreign films has also shocked the content business in the United States. Experts believe this measure could be another trigger for trade conflicts and will inevitably impact the media industry as a whole.
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