By Sam Goldfarb and Caitlin McCabe

The big stock rebound showed some signs of exhaustion on Monday.

The S&P 500 fell 0.6%, while the Dow Jones Industrial Average slipped 0.2%, or roughly 99 points, despite some better-than-expected economic data and fresh promises of trade deals from Treasury Secretary Scott Bessent.

Both indexes snapped nine-day winning streaks, while the tech-heavy Nasdaq Composite dropped 0.7%. Had the S&P risen for a 10th straight session, it would have been the benchmark's longest streak since 1995, according to Dow Jones Market Data.

Heading into Monday, stocks had been on a remarkable run, buoyed by solid economic data and steps taken by the Trump administration to soften some of its trade policies. While the S&P 500 is still down 3.9% for the year, it has effectively erased losses that followed President Trump's unveiling of tariffs on April 2.

Investors got more good news on Monday when the Institute for Supply Management reported stronger-than-expected U.S. services activity. The purchasing-managers index rose to 51.6 in April, up from 50.8 in March and above the 50.4 reading anticipated by economists polled by The Wall Street Journal.

"Respondents continue to mention federal agency budget cuts as a drag on business, but overall, results are improving," said Steve Miller, chairman of ISM's Services Business Survey Committee.

Also supporting stocks were comments from Bessent, who said in an interview with CNBC that 17 countries had approached the Trump administration with "very good trade proposals" to avoid higher U.S. tariffs on their exports.

Bessent also said that "we could see substantial progress in the coming weeks" between the U.S. and China. Many U.S. imports from China currently face a 145% tariff, threatening trade between the two countries.

One drag on shares: Trump's comments over the weekend calling for 100% tariffs on movies made overseas. That weighed on entertainment-company stocks, with Netflix shares falling 1.9% and Paramount Global stock dropping 1.6%.

Shares of Berkshire Hathaway, meanwhile, fell 5.1% after Warren Buffett said he plans to step down as chief executive at year-end.

Elsewhere in markets:

Oil prices declined, after the OPEC cartel and its allies agreed to a further boost to output. U.S. crude fell 2% to $57.13 a barrel, its lowest settlement value since February 2021.

Treasury yields were lifted by the ISM services data. The yield on the 10-year note settled at 4.342%, according to Tradeweb, up from 4.317% Friday.

The WSJ Dollar Index retreated. In Taipei, the Taiwanese central bank convened an emergency meeting and denied the U.S. had demanded Taiwan boost the value of its currency.

Gold futures climbed above $3,300 a troy ounce. They had hit an all-time high above $3,500 last month.

Overseas, the Stoxx Europe 600 rose slightly. Markets in China, Japan, South Korea and the U.K. were closed.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

May 05, 2025 16:33 ET (20:33 GMT)

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