US stocks closed lower on Monday, ending a nine-day winning streak, as oil prices hit a four-year low following OPEC+’s announcement to increase production. The losses came during a relatively calm day of mixed trading, after several weeks of gains that had helped the market recover from earlier losses caused by the ongoing trade war.
The S&P 500 fell 36 points, or 0.6%, closing at 5,650. This marked the end of the benchmark index’s longest winning streak since 2004. The Dow Jones Industrial Average dropped 98 points, or 0.2%, to 41,218, while the Nasdaq Composite fell 133 points, or 0.7%, to 17,844.
Technology companies and other large stocks were among the heaviest contributors to the declines. Apple slumped 3.1%, Amazon fell 1.9%, and Tesla slid 2.4%. Berkshire Hathaway saw a significant drop of 5.1%, following the announcement that Warren Buffett would step down as CEO by the end of the year after six decades in charge, although he will remain as chairman of the board.
The OPEC+ group, which consists of eight oil-producing nations, revealed over the weekend plans to raise its oil output by 411,000 barrels per day starting June 1. This decision led to a 2% drop in US crude oil prices, bringing them down to $57.13 per barrel. Many oil producers struggle to remain profitable when prices fall below $60 per barrel, and the energy sector led the losses within the S&P 500. Exxon Mobil lost 2.8%.
Shares in US film studios declined after President Donald Trump threatened to impose a 100% tariff on foreign-made films. Netflix dropped 1.9%, while Warner Bros. Discovery fell 2%.
In contrast, shares of shoe companies posted gains after Skechers announced its acquisition for $9 billion by the investment firm 3G Capital, which will take the company private. Skechers saw a 24.3% increase, Crocs rose 3.4%, and Deckers Outdoor, which owns brands like Ugg and Teva, gained 1.2%.
Treasury yields also rose, with the 10-year Treasury yield increasing to 4.35% from 4.31% on Friday.
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