Consumer companies fell as traders reversed bets that the Federal Reserve would soon intervene to cut interest rates.
The Institute for Supply Management said its service-sector PMI rose to 51.6% in April from 50.8% in the prior month. One brokerage said the negative impacts of tariffs could still be underestimated on the stock market. "Tariffs could push the rate of headline and core PCE inflation to 3.5% and 4.0% by year-end," from current levels around 2%, said economists at brokerage Morgan Stanley.
The brokerage "expects tariffs to act as a consumption tax, pushing growth in real household spending towards zero later this year."
Shoe maker Skechers agreed to become a privately held company through a $9.42 billion deal with 3G Capital.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
May 05, 2025 17:44 ET (21:44 GMT)
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