The Dow Jones Industrial Average closed modestly higher on Monday, gaining 108.27 points to finish at 41,425.70, as investors digested significant leadership news from Berkshire Hathaway and monitored new developments in U.S. trade policy.
Despite a turbulent day for some major tech and energy names, the index eked out a 0.26% gain, extending its positive streak amid mixed signals from the broader economy.
Markets responded swiftly to breaking news from Berkshire Hathaway, where legendary investor Warren Buffett announced he would step down as CEO by year’s end. Greg Abel, widely regarded as Buffett’s heir apparent, is set to take the helm while Buffett retains his role as board chairman.
Berkshire Hathaway shares dropped nearly 5% following the announcement, reflecting investor unease despite the long-anticipated transition.
“Buffett’s decision to step back marks the end of an era,” said financial analyst Carla Raymond of MarketEdge. “Even with Abel’s credibility, there’s an emotional and psychological shift underway for many long-time investors.”
Among Dow components, UnitedHealth Group led the gainers with a 2.27% rise, followed by IBM (+1.50%), McDonald’s (+1.47%), and American Express (+1.39%). Walmart also posted solid gains, climbing 0.94%.
On the downside, tech giant Apple fell 2.13%, while Chevron dropped 1.75% amid a pullback in oil prices. Amazon, Nike, and Procter & Gamble also weighed on the index.
Netflix shares were notably down after President Donald Trump floated a potential 100% tariff on foreign-produced movies—a move that could impact major streaming platforms.
Markets were jittery following a renewed wave of trade rhetoric from the White House. President Trump’s proposed tariffs sparked fresh concerns across several sectors, especially tech and media.
At the same time, the administration hinted at possible reductions in tariffs on Chinese imports, offering a glimmer of hope for exporters and global supply chains.
The Institute for Supply Management (ISM) reported a slight uptick in services activity, with its April index rising to 51.6. However, S&P Global’s U.S. Services PMI slipped to a five-month low, adding to the ambiguity around the health of the service sector.
Investors are now closely watching the Federal Reserve, which is set to meet later this week. While no interest rate cuts are expected, all eyes will be on Chair Jerome Powell’s remarks, particularly around inflation and trade dynamics.
Despite today’s upward close, the market remains delicately balanced. Uncertainty around U.S. trade policy and leadership transitions at key companies like Berkshire Hathaway are likely to continue driving short-term volatility.
“Market sentiment is cautiously optimistic,” said Greg Hansen, senior strategist at Atlas Capital. “But between politics, earnings, and the Fed, there’s no shortage of variables that could shift momentum in either direction.”
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