U.S. stocks commenced the week on a downward trajectory, with the Dow Jones Industrial Average shedding over 200 points, reflecting a tightened market for risk assets following last week’s progress.

As the Dow dipped by 200 points, the S&P 500 recorded a 0.6% decrease, while the tech-focused Nasdaq dropped by 0.8% at the start. This negative sentiment arose as Wall Street braced for a crucial week filled with tariff news and the significant two-day U.S. Federal Reserve meeting.

In the previous week, stocks saw a modest rise driven by impactful remarks concerning the U.S.-China trade situation.

However, with reports of no immediate agreements and President Donald Trump’s recent tariff threats against foreign media, market sentiment has turned more volatile.

Specifically, Trump declared a 100% tariff on films produced outside the United States, announcing this via social media on Sunday, May 4, with immediate effect.

Worries regarding the trade conflict and the Federal Reserve’s forthcoming policy decisions remain at the forefront for investors.

A decline in futures on Monday saw the leading cryptocurrency, Bitcoin (BTC), fall to approximately $94k.

This drop occurred as the U.S. dollar continued to weaken, while the 10-year U.S. Treasury yield remained steady.

Looking ahead, investors will focus not only on the Fed’s meeting but also on macroeconomic indicators. The earnings season continues, spotlighting major companies such as automaker Ford (F) and Palantir (PLTR).

Other firms anticipated to announce their earnings include Disney (DIS) and AMD (AMD). Key data releases this week include manufacturing activity on Monday and the jobless claims report on Tuesday.

These reports will be closely monitored by investors as essential economic indicators.