CNBC Business News Update - Market Close: Stocks Snap Winning Streak, Apple Drags On The Dow, Citi CEO Weighs In On Tariffs 5/5/25

Episode Date: May 5, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jill Schneider.

I'm Jill Schneider CNBC stocks tried to rally into positive territory and the Dow did make it there but couldn't stay there. The Dow snapped its nine day winning streak, dropping 98 points or a quarter of a percent. The S and P 500 also ended its nine day winning streak, losing 36 points. The Nasdaq dropped 133 points about three quarters of percent. Apple was the biggest drag on the Dow down for a second day following its earnings report late Thursday. Shares of Berkshire Hathaway were under pressure Monday, losing five percent as investors processed Warren Buffett's surprise announcement to step down and envisioned a new path for the

conglomerate after his legendary 60-year run. Although President Trump's tariffs have posed a threat to the artificial intelligence boom, Jonathan Gray of Blackstone thinks there is more gas in the tank for data center usage demand. I think there's a bit of a danger that it's almost like there's this wall in front of us and we can't, we've forgotten what's off in the distance, which is this powerful revolution in technology.

Mark Zuckerberg said last week that what's happening in AI is staggering, and we share that view. AMNA NAWAZ. When it comes to the full impact of President Trump's tariffs, Citi's CEO, Jane Fraser, says many companies are in a wait-and-see mode. JANE FRAZIER, CEO, Citi's CEO, Citi's CEO, Citi's Tariff and Tariff Association, Citi's CEO, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff

Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's Tariff Association, Citi's still activity but things like investment spending, some of the hiring plans, some of those have slowed down or are on pause and that will have an impact on demand. And then we will have the actual impact of the tariffs themselves which will come through either in terms of price impact and some potential shocks there as well as the actual supply. And we don't know yet whether that's going to be 10% tariff, 25% tariff, or even higher. Skechers soared more than 24% as the company announced it's going private. The footwear giant has agreed to be acquired by private equity firm 3G Capital.

The company will pay $63 per share in cash for Ske Sketchers, a 30% premium to the company's current valuation. After 21 years, it's the end of the road for Skype. Microsoft shut down the video calling app Monday, nearly 15 years after the tech giant acquired it from eBay for $8.5 billion. In February, Microsoft said it was retiring the service to help it better adapt to consumer needs.

Jill Schneider, CNBC.